A seller and broker both agree that the listing relationship is not working and together sign a release cancelling the listing agreement. What type of termination is this?
Correct Answer
D) Termination by mutual agreement
Termination by mutual agreement is correct because both the principal and agent consent to end the relationship, making it a bilateral decision rather than a unilateral one.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
More General Principles Of Agency Questions
A listing agreement creates an agency relationship between:
A property management agreement between an owner and a property manager typically specifies which of the following?
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A buyer's agent compensation can be structured as:
- → A commercial tenant is negotiating a five-year lease for retail space. The tenant hires a tenant representative broker to negotiate lease terms on the tenant's behalf. What agency relationship exists between the tenant and the tenant representative?
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- → A property manager discovers that a rental unit has a significant mold problem. The manager repairs the visible mold but does not inform the property owner about the extent of the damage or the potential liability. Has the property manager violated any agency duty?
- → The minimum requirement for real estate professional advertising is:
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Sofia Turner introduces Ethan Price to buyers as the person authorized to negotiate terms, even though no true agency was created. A buyer reasonably relies on that appearance. What theory may bind Sofia Turner?
Next Question
An agent without any prior authority negotiates a reduced-price deal on behalf of the property owner. The owner, after learning the full details, decides to accept the deal. What legal concept allows the owner to validate the agent's unauthorized act?