David is a Connecticut licensed salesperson working under Broker Carol. David has been representing buyer Theresa under a signed buyer representation agreement that runs through December 31. In October, Broker Carol's real estate firm is dissolved and her broker's license lapses because she fails to renew it. Theresa has not yet found a property. Under Connecticut license law and agency principles, which of the following most accurately describes the status of David's agency relationship with Theresa?
Correct Answer
D) David's agency relationship with Theresa terminates because a Connecticut salesperson cannot legally perform licensed activities without an active supervising broker.
Under CGS § 20-312 and related provisions of Connecticut Chapter 392, a real estate salesperson's license is legally dependent on affiliation with a licensed supervising broker. A Connecticut salesperson has no independent legal authority to perform licensed real estate activities — all such authority flows through the employing broker. When Broker Carol's license lapses and her firm is dissolved, David loses the legal foundation for his agency authority. The buyer representation agreement cannot be performed lawfully without an active broker, and therefore the agency relationship terminates by operation of law. This is a Connecticut-specific trap: candidates sometimes assume the written contract alone sustains the agency, but CT law makes the broker-salesperson affiliation a prerequisite for any lawful agency activity.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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