Question

Completing the sale of the listing and paying a commission would

1.) extend the agency relationship.
2.) terminate the agency relationship.
3.) make the agency relationship permanent.
4.) make the agency agreement reviewable by the Department.

Answer 1

Completing the sale of a property and paying a commission generally terminates the agency relationship between a real estate agent and their client, as the agent's primary objective has been fulfilled.

Step-by-step explanation:

When a real estate agent successfully completes the sale of a property listing and earns a commission, this event would terminate the agency relationship between the agent and their client. The agency relationship is typically established by a contract which outlines that the agent will represent the seller in selling the property and seek a buyer.

Once the sale is completed and the commission is paid, the purpose of the contractual relationship has been fulfilled, and the agency relationship ends unless there is a specific provision to extend it or establish a new purpose.