Question 14

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

The agency relationship and listing remain intact even if the associate broker dies, as the relationship is primarily between the owner and the employing broker.

A) Associate broker dies.

This option is correct because the death of an associate broker does not terminate the agency relationship. The employing broker can continue to act on behalf of the owner, ensuring that the listing remains active and the owner's interests are still represented.

B) Employing broker dies.

This option is incorrect because if the employing broker dies, the agency relationship is typically terminated. The owner would need to seek a new broker to represent them, as the employing broker is the primary party in the agency relationship.

C) Property is destroyed by fire.

This option is incorrect as the destruction of the property would likely terminate the listing agreement. If the property is no longer available for sale, the agency relationship may no longer be relevant.

D) Owner is declared mentally incompetent.

This option is also incorrect because if the owner is declared mentally incompetent, the agency relationship would typically be terminated. The owner would no longer have the legal capacity to engage in a real estate transaction, invalidating the listing agreement.

Conclusion

The correct answer is A, as the associate broker's death does not impact the agency relationship established with the owner through the employing broker. In contrast, options B, C, and D all involve situations that would likely end the agency relationship or affect the validity of the listing agreement. This highlights the nature of agency relationships and the critical role of the employing broker.