Question 76

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. This is because the listing agreement is between the property owner and the employing broker, not the associate broker directly.

A) Associate broker dies.

This option is correct because the agency relationship is established between the owner and the employing broker. Therefore, the death of the associate broker does not terminate the listing agreement.

B) Employing broker dies.

This option is incorrect as the death of the employing broker would result in the termination of the agency relationship. Since the agreement is with the employing broker, their death would dissolve the contract.

C) Property is destroyed by fire.

This option is incorrect because the destruction of the property would typically lead to the termination of the listing agreement. A listing depends on the property being available for sale, and if it is destroyed, it can no longer be sold.

D) Owner is declared mentally incompetent.

This option is incorrect as well, as a declaration of mental incompetence would render the owner unable to fulfill contractual obligations, thereby terminating the agency relationship and the listing agreement.

Conclusion

In summary, the agency relationship and listing are maintained despite the death of the associate broker because it is the employing broker who holds the agreement with the owner. All other options involve conditions that would terminate the listing or agency relationship, highlighting the unique stability of the relationship in the event of the associate broker’s death.