Agency
What is 'agency termination' and what events can end an agency relationship in Illinois?
AAgency can only be terminated by the principal; the agent has no right to terminate
BAgency terminates by: mutual agreement, expiration of the listing agreement term, completion of the purpose, death or incapacity of either party, property destruction, or revocation by either party (though revocation may create liability)✓ Correct
CAgency terminates automatically after 6 months regardless of listing contract terms
DOnly IDFPR can terminate an agency relationship between a licensee and client
Explanation
Agency relationships in Illinois can terminate in several ways: (1) expiration of the contract term; (2) completion of the agency purpose (property sold or lease signed); (3) mutual agreement; (4) death or incapacity of either party; (5) destruction of the property; (6) revocation by the principal (may create liability for breach of contract); (7) renunciation by the agent (also may create liability). When agency terminates, the agent's authority to act on the principal's behalf ends.
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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 AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Math Concepts
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