Question 62

The agency relationship and listing would continue even if the associate broker dies.

The agency relationship and listing would remain valid despite the death of the associate broker, as the employing broker is the primary entity in the agency relationship.

A) associate broker dies.

This option is correct because the death of the associate broker does not terminate the listing agreement. The employing broker retains the authority to continue the agency relationship and manage the listing.

B) employing broker dies.

This option is incorrect as the death of the employing broker would terminate the agency relationship. The listing agreement is held with the employing broker, and their death would necessitate the conclusion of that relationship.

C) property is destroyed by fire.

This option is incorrect because while the destruction of the property may affect the listing, it does not terminate the agency relationship. The listing could still exist as long as the broker remains in business and the terms of the agreement allow for it.

D) owner is declared mentally incompetent.

This option is also incorrect because if the owner is declared mentally incompetent, the agency relationship would be terminated. The ability of the owner to enter into contracts would be compromised, affecting the validity of the listing.

Conclusion

In summary, the only scenario that does not terminate the agency relationship and listing agreement is the death of the associate broker. All other options involve situations that would lead to the dissolution of the agency relationship, demonstrating the unique stability provided by the employing broker’s continuity in the agency.