What is the correct answer to: After listing expiration, the broker should inform callers:

The correct answer is No longer the listing agent. Once a listing agreement expires, the broker's agency relationship with the seller ends by operation of the contract's own terms, and the broker has an affirmative duty to inform callers that they are no longer the listing agent for the property. This disclosure is required to prevent confusion about the broker's authority, avoid any implication of continued agency, and ensure that potential buyers know they should contact the seller directly or through a new listing agent if one has been appointed. Failing to make this disclosure could result in disciplinary action by the state real estate commission for misrepresentation or unauthorized practice.

What background knowledge is needed for this General Principles Of Agency question?

The concept of listing expiration and its effect on agency is rooted in basic contract law — all contracts, including listing agreements, have a defined term, and when that term expires, the contractual obligations of both parties end. State real estate licensing laws, which are modeled in part on the National Association of REALTORS® Code of Ethics (particularly Article 1, which requires honest treatment of all parties), have long required that brokers clearly communicate the limits of their authority. The issue of expired listings became particularly significant during the real estate boom periods of the 1970s and 1980s, when brokers sometimes continued marketing properties after expiration to capture commissions — leading to stricter state regulations requiring clear disclosure of agency status. Today, most state licensing laws explicitly require brokers to disclose their agency relationship (or lack thereof) at the first substantive contact with a potential buyer.

What is a good way to remember the answer to this General Principles Of Agency question?

Think of a listing expiration like a driver's license expiration — the moment it expires, you have no legal authority to drive (or in this case, to act as an agent), and you must tell anyone who asks that your license is no longer valid. Use the phrase 'EX means EXIT' — when the listing EXpires, the broker must EXIT the agency relationship and clearly communicate that exit to anyone who calls. Just as an expired ID gets you turned away at the door, an expired listing gets the broker turned away from any further representation. 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.

What exam tip applies to this General Principles Of Agency question?

On the exam, questions about expired listings always test whether students understand that agency terminates completely at expiration — the correct answer will always involve disclosure of the terminated relationship, never continued action on behalf of the seller. Eliminate any answer that involves the broker taking action on behalf of the property (showing, quoting prices, scheduling appointments) because all such actions require a current, valid listing agreement.

How does this General Principles Of Agency concept apply in real world practice?

A broker listed a home in March with a six-month listing agreement that expired in September. In October, a buyer who saw the old yard sign calls the broker to inquire about the property. The broker must immediately inform the caller that the listing has expired and that they are no longer the listing agent for the property. The broker should not attempt to show the home, quote a price, or facilitate any transaction — instead, they might suggest the caller contact the seller directly or check with other agents who may have a current listing. If the broker instead scheduled a showing and the seller accepted an offer, the broker would likely have no legal right to a commission and could face disciplinary action.

General Principles Of AgencyEASY

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.

Answer Options

House is off market

No longer the listing agent

Set up a showing appointment

Leave key under doormat

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Related Concepts

Vicarious Liability

The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.

Agency by Estoppel

An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.

Agency by Ratification

An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.

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After listing expiration, the broker should inform callers:

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