Maria is a New Jersey licensed broker who has a valid buyer representation agreement with her client, David. They have been working together for two months searching for a home in Bergen County. Which of the following would NOT automatically terminate the buyer representation agreement between Maria and David?
Correct Answer
D) David verbally tells a friend he is unhappy with Maria's service.
David verbally expressing dissatisfaction to a third party does not automatically terminate the buyer representation agreement. Under New Jersey agency law, termination of an agency agreement requires a legally recognized event — such as expiration of the agreement's term, mutual consent, completion of the purpose, death or incapacity of a party, or loss of a required license. A private, informal complaint to a friend carries no legal effect on the agency relationship. To properly terminate the agreement, David would need to follow the termination provisions set forth in the written buyer representation agreement itself.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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