An owner lists a property with a broker through an associate broker. The agency relationship and listing would continue even if the:

Rationale

An owner lists a property with a broker through an associate broker; the agency relationship continues even if the associate broker dies.

The agency relationship is tied to the employing broker, and the death of an associate broker does not terminate the listing agreement. The employing broker remains responsible for the agency relationship, ensuring that the listing continues despite the associate broker's death.

A (associate broker dies) CORRECT

The death of an associate broker does not affect the listing agreement because the agency relationship is established with the employing broker. The employing broker can assign another associate broker to manage the listing, thus maintaining the continuity of the agency relationship.

B (employing broker dies) YOUR ANSWER

The death of the employing broker would terminate the agency relationship and the listing agreement, as the employing broker is the principal party in the agency relationship. In such a case, the listing would end, and the property would need to be relisted by the new broker or another representative.

C (property is destroyed by fire) YOUR ANSWER

If the property is destroyed by fire, the listing agreement may be affected, as the subject of the listing no longer exists. This situation typically leads to a termination of the agreement, as it is no longer feasible to sell a property that has been destroyed.

D (owner is declared mentally incompetent) YOUR ANSWER

If the owner is declared mentally incompetent, the agency relationship would be terminated, as the owner would lack the legal capacity to enter into contracts. This would nullify the listing agreement, requiring a new agreement once the owner regains competency or a legal guardian is appointed.

Conclusion

The agency relationship established through a listing agreement primarily depends on the employing broker, ensuring that the relationship remains intact even if an associate broker dies. However, the death of the employing broker, destruction of the property, or the owner's mental incompetence would all lead to the termination of the agency relationship and the listing agreement. Understanding these distinctions is crucial for both brokers and property owners in real estate transactions.

An owner lists a property with a broker through an associate broker. The agency relationship and listing would continue even if the:

An owner lists a property with a broker through an associate broker; the agency relationship continues even if the associate broker dies.

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