A California real estate corporation's only designated officer dies unexpectedly, leaving three associate licensees and several active listings. Which statement about the brokerage is most accurate?
Correct Answer
D) The listings remain in force, because the licensed broker under those agreements is the corporation rather than the deceased officer
A corporate real estate license belongs to the corporation, which acts through an officer designated to be responsible for its licensed activity. The corporation is the party to its listing agreements, so the designated officer's death does not dissolve the corporation or terminate those contracts. What the death does is remove the person qualified to supervise: the corporation must promptly notify the Department of Real Estate and have a new designated officer licensed, and until that happens neither the corporation nor its salespersons may carry on licensed activity, because a salesperson may act only under a licensed broker.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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