Agency

In New Mexico, which of the following would terminate an agency relationship by operation of law?

AThe client moving to another state
BThe death or incapacity of the principal or agent✓ Correct
CA change in market conditions
DThe property being listed on the MLS

Explanation

Agency terminates by operation of law upon the death or legal incapacity of either the principal or agent. Other events include destruction of the subject matter, bankruptcy, or impossibility of the agency purpose.

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