In Victoria, under what circumstances can a real estate agent terminate an exclusive agency agreement before its expiry date?
Correct Answer
B) Only by agreement with the vendor, or where the vendor has given just cause.
Because an exclusive sales authority is a binding contract, the agent can end it early only by agreement with the vendor or where the vendor has given just cause, such as a serious breach. Walking away unilaterally without proper grounds would breach the agent’s contractual and fiduciary obligations.
Why This Is the Correct Answer
An exclusive agency agreement is a binding contract for its term. The agent can end it early only by agreement with the vendor, preferably documented in writing, or where the vendor's own conduct, such as a serious breach, gives just cause. This protects vendors who have committed to one agent and turned others away.
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In Victoria, if an agency agreement is terminated by the vendor before expiration without just cause, what rights does the agent typically retain regarding commission?
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