Two months into a six-month exclusive right-to-sell listing, the listing agent decides to leave her brokerage and move out of state. She sends the homeowner written notice that she is ending the representation, effective immediately. The homeowner had not asked her to leave and did not agree to her departure. Which method ended the agency relationship?
Correct Answer
C) Renunciation of the agency by the agent
Either party may walk away from an agency, and the label depends on who does the walking: renunciation when the agent withdraws, revocation when the principal cancels. Here the agent gave notice that she was ending the representation while the homeowner still wanted it, so the agency ends by the agent's renunciation. The relationship is over either way, but the brokerage may still owe damages for abandoning a listing with four months left to run.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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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?
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Previous Question
A broker decides to withdraw from a listing halfway through the term because of personal health issues. What is the broker's voluntary withdrawal called?
Next Question
A buyer's agent is midway through negotiating a purchase contract for her buyer client when the buyer suffers a severe stroke. A probate court then enters an order finding the buyer legally incapacitated, and no power of attorney is in place. Which doctrine governs what happens to the agency?