Question 136

Listing licensee changes brokerage firm is NOT a valid reason for termination of agency.

Termination of an agency can occur for various reasons, but a listing licensee changing brokerage firms does not inherently terminate the agency agreement.

A) Destruction of the property

Destruction of the property is a valid reason for termination of agency because if the subject of the agency no longer exists (i.e., the property is destroyed), the purpose of the agency cannot be fulfilled, leading to its termination.

B) Mutual agreement by all parties

Mutual agreement by all parties is a valid reason for termination of agency, as both the principal and the agent can decide to end the relationship at any time, reflecting a consensus on the termination.

C) Expiration of the agency agreement

Expiration of the agency agreement is also a valid reason for termination. When the time period specified in the agreement comes to an end, the agency relationship naturally concludes unless renewed or extended by the parties involved.

D) Listing licensee changes brokerage firm

Listing licensee changing brokerage firm is not a valid reason for termination of agency. While it may affect the operational aspects of the agency, the underlying agency agreement remains intact unless explicitly stated otherwise.

Conclusion

The correct answer is that a listing licensee changing brokerage firm does not validly terminate an agency relationship, while the other options provided are legitimate grounds for termination. Understanding the distinctions between these scenarios is crucial in agency law, ensuring that all parties are aware of their rights and obligations in various circumstances.