A Connecticut salesperson has been working with a buyer under a signed buyer representation agreement. The buyer calls the salesperson and says, 'I just inherited a house from my aunt and no longer need to purchase a property. I want to end our agreement immediately.' Under Connecticut agency law, which of the following best describes what happens to the agency relationship at this point?
Correct Answer
A) The agency relationship terminates because the purpose of the agency has been fulfilled or become impossible to fulfill.
Under Connecticut agency law (consistent with CGS Chapter 392 and general agency principles adopted in Connecticut), an agency relationship terminates by operation of law when the purpose of the agency becomes impossible to fulfill or is otherwise accomplished. Because the buyer has inherited a home and no longer has a need to purchase property, the underlying purpose of the buyer representation agreement has been rendered moot. Connecticut recognizes this as a valid basis for automatic termination of the agency relationship, regardless of the written agreement's expiration date.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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