AgencyIntermediateDelaware Exam

When does an agency relationship in Delaware real estate terminate?

AOnly when the property is sold
BUpon completion of the agreed purpose, expiration of the agreement, mutual consent, death/incapacity of either party, or destruction of the subject propertyCorrect
COnly by written notice from the client
DOnly ever at the specific moment when the licensee formally changes brokerages, and at no other time, which is broadly consistent with standard practice statewide

Why Upon completion of the agreed purpose, expiration of the agreement, mutual consent, death/incapacity of either party, or destruction of the subject property Is Correct

Answer B: Upon completion of the agreed purpose, expiration of the agreement, mutual consent, death/incapacity of either party, or destruction of the subject property

An agency relationship terminates when: (1) the agreed purpose is accomplished (sale closed), (2) the agreement term expires, (3) either party withdraws/revokes (subject to liability for breach), (4) by mutual consent, (5) death or incapacity of either party, or (6) destruction of the subject 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

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