Which of the following does NOT terminate an agency relationship?
Correct Answer
C) The agent unilaterally abandoning the client to pursue a more desirable opportunity
An agent cannot terminate an agency relationship simply by abandoning a client in favor of a better opportunity. Doing so constitutes abandonment and a breach of fiduciary duty, exposing the agent to liability and potential disciplinary action by IREC. Agency relationships are properly terminated by: expiration of the agreement, mutual consent of both parties, death or incapacity of either party, completion of the agency's purpose, destruction of the subject property, or operation of law.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
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.
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.
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