Question 4

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

The agency relationship and listing would remain intact despite the death of the associate broker, as the relationship is established between the owner and the employing broker, not solely the associate broker.

A) associate broker dies

This option is correct because the death of the associate broker does not terminate the agency relationship. The employing broker retains the authority and responsibility, allowing the listing to continue until it is formally terminated by the owner or until other conditions specified in the listing agreement are met.

B) employing broker dies

This option is incorrect because the death of the employing broker would typically terminate the agency relationship. Without an employing broker to manage the listing, the agency cannot continue, as the relationship is directly tied to the employing broker's existence.

C) property is destroyed by fire

This choice is incorrect since the destruction of the property would not necessarily terminate the agency relationship or listing agreement. However, it could change the terms of the agreement or lead to its eventual termination if the property cannot be rebuilt or sold.

D) owner is declared mentally incompetent

This option is incorrect as the declaration of mental incompetence would likely terminate the agency relationship. The owner would no longer have the legal capacity to enter into or maintain a contractual agreement, thus ending the listing.

Conclusion

The correct answer is A, as the agency relationship is fundamentally linked to the employing broker and not the associate broker, whose death does not affect the continuity of the listing. Options B, C, and D each represent scenarios in which the agency relationship would be impacted, affirming the unique stability of the relationship in the case of the associate broker's death.