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

Rationale

Associate broker dies.

The agency relationship and listing agreement remain in effect despite the death of the associate broker, as the employing broker continues to hold the agency relationship with the owner. The employing broker retains the responsibility for the agreement and can assign another associate broker to manage the listing.

A (Associate broker dies.) CORRECT

The death of the associate broker does not terminate the agency relationship because the employing broker maintains the authority to continue the representation of the owner. The listing is tied to the employing broker, ensuring that the agency persists even in the absence of the specific associate.

B (Employing broker dies.) YOUR ANSWER

If the employing broker dies, the agency relationship is typically terminated, as the authority to act on behalf of the owner is no longer valid. In this case, there would be a need to establish a new agency relationship with a different broker to continue the listing.

C (Property is destroyed by fire.) YOUR ANSWER

The destruction of the property by fire generally does not affect the agency relationship itself; however, it might lead to a termination of the listing agreement if the property can no longer be sold. The agency relationship could persist, but the purpose of the listing would be rendered moot due to the loss of the property.

D (Owner is declared mentally incompetent.) YOUR ANSWER

If the owner is declared mentally incompetent, the agency relationship may be affected as the owner would be unable to make legal decisions regarding the property. This situation could lead to the termination of the listing agreement, as the owner could not provide valid consent.

Conclusion

In real estate, the continuity of agency relationships depends on various factors. The death of an associate broker does not disrupt the agency relationship established with the owner, as the employing broker retains control. Other scenarios, such as the death of the employing broker or the owner's mental incompetence, could terminate the listing agreement, highlighting the importance of understanding the dynamics of agency in property transactions.

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

Associate broker dies.

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