Question 83

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

The agency relationship and listing agreement remain valid despite the death of the associate broker. This is because the listing is tied to the employing broker and the agency firm, rather than the individual associate broker.

A) Associate broker dies.

This option is correct as the death of the associate broker does not terminate the listing agreement. The employing broker, who oversees the associate broker, retains the relationship with the property owner, ensuring that the agency agreement continues uninterrupted.

B) Employing broker dies.

This option is incorrect because if the employing broker dies, the agency relationship is typically terminated. The listing agreement is tied to the employing broker, and their death would mean that the agency firm can no longer represent the owner in the transaction.

C) Property is destroyed by fire.

This option is incorrect as the destruction of the property would likely terminate the agency relationship and the listing. A listing agreement is contingent upon the property being available for sale, and if it is destroyed, the agreement may no longer be enforceable.

D) Owner is declared mentally incompetent.

This option is incorrect as the declaration of mental incompetence would likely void the listing agreement. If the owner is unable to make decisions regarding the property due to incompetence, the agency relationship cannot continue as they are not in a position to uphold their responsibilities under the agreement.

Conclusion

Option A is definitively correct because the agency relationship is maintained by the employing broker, protecting the continuity of the listing agreement despite the associate broker’s death. In contrast, Options B, C, and D all present scenarios that would lead to the termination of the agency relationship, highlighting the unique stability provided by the employing broker's role in the listing process.