AgencyAdvancedCalifornia Exam

Which of the following would NOT terminate an agency relationship?

AMutual agreement of both parties

BDeath of the principal

CExpiration of the listing period

DAgent going on a two-week vacationCorrect

Why Agent going on a two-week vacation Is Correct

Answer D: Agent going on a two-week vacation

An agent's vacation does not terminate the agency relationship. Agency is terminated by mutual agreement, expiration of the agreement, completion of the purpose, death or incapacity of either party, or destruction of the property.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

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Key Terms to Know

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

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Agency Law Guide

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