Sandra is a licensed Michigan salesperson affiliated with Lakeshore Realty. She has a signed listing agreement with seller David for his Grand Rapids home. Which of the following events would NOT automatically terminate the listing agreement between David and Lakeshore Realty?
Correct Answer
C) Sandra voluntarily transfers her license affiliation to a competing brokerage.
Sandra's transfer of her license affiliation to a competing brokerage does NOT automatically terminate the listing agreement between David and Lakeshore Realty. Under Michigan law (MCL 339.2512), a listing agreement is a contract between the seller and the employing broker, not between the seller and the individual salesperson. Because Sandra is an agent of Lakeshore Realty — not a party to the listing contract — her departure does not affect the contractual relationship between David and the brokerage. Lakeshore Realty retains the listing and may assign another salesperson to service it.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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