After listing expiration, the broker should inform callers:
Correct Answer
B) No longer the listing agent
Once a listing expires, the broker no longer represents the seller and should inform callers they are no longer the listing agent to avoid unauthorized agency.
Why This Is the Correct Answer
Answer B is correct because after listing expiration, the broker must inform callers they are no longer the listing agent. This accurately reflects the terminated agency relationship and prevents unauthorized representation.
Why the Other Options Are Wrong
Option A: House is off market
Option A is incorrect because stating the house is 'off market' is not accurate. The property is still on the market, just no longer with that specific broker. The seller may have listed with another agent, put the property up for sale by owner, or temporarily taken it off the market. The broker should not make assumptions about the property's current status beyond their own listing authority.
Option C: Setup showing appointment
Setting up showing appointments would imply the broker still has authority to represent the property, which is incorrect after listing expiration.
Option D: Leave key under doormat
Leaving a key under a doormat after listing expiration creates significant liability issues and implies the broker still has control of the property.
Deep Analysis of This Agency Question
This question tests understanding of agency relationships after listing expiration, a critical concept in real estate practice. When a listing agreement expires, the broker-seller agency relationship terminates. This matters because brokers have legal and ethical obligations regarding property information and representation. The question's core concept is the broker's duty to properly communicate their changed status. Option A is incorrect because the property may still be on market with another broker. Option B is correct as it accurately states the broker's new status. Option C is wrong because the broker no longer has authority to arrange showings. Option D is dangerous as it could create liability issues. This question challenges students to distinguish between property status and broker status. Understanding this connects to broader knowledge of agency relationships, listing agreements, and broker duties.
Background Knowledge for Agency
Agency relationships in real estate are created through formal agreements like listing contracts. When these agreements expire, the agency relationship terminates. Brokers have a duty to avoid unauthorized practice of law and unauthorized agency representation. After expiration, brokers should not act as if they still represent the seller or have authority over the property. This rule exists to protect both consumers and brokers from misunderstandings that could lead to legal disputes or unauthorized practice claims.
Memory Technique
analogyThink of a listing expiration like a store closing for the day. Just as the employee would tell customers 'I'm no longer working here, not that the store is closed,' the broker should say they're no longer the listing agent, not that the property is off market.
When you see a question about post-listing expiration, ask yourself: 'Would this be appropriate if the listing expired yesterday?' If not, it's likely incorrect.
Exam Tip for Agency
When questions address post-listing expiration scenarios, focus on the broker's changed status rather than the property's status. Remember: expired listing = terminated agency.
Real World Application in Agency
A broker's listing agreement expires on Friday. Over the weekend, a potential buyer calls asking about the property. The broker explains they are no longer the listing agent but knows the sellers plan to list with another broker next week. The broker provides the new broker's contact information rather than continuing to answer questions or arrange showings, properly maintaining their changed status and avoiding unauthorized agency.
Common Mistakes to Avoid on Agency Questions
- •Confusing property status (off market) with broker status (no longer listing agent)
- •Assuming brokers retain authority to arrange showings after expiration
- •Failing to understand the legal consequences of continuing to act as the listing broker
Related Topics & Key Terms
Related Topics:
Key Terms:
More Agency Questions
A fiduciary relationship exists between:
Which duty requires an agent to keep the principal informed of all material facts?
Dual agency occurs when:
An agent who exceeds the authority granted by the principal:
A broker who represents both the buyer and seller in the same transaction without the knowledge and consent of both parties is practicing:
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