National Real Estate Exam (PSI)General Principles of AgencyEasy
A 90-day listing agreement expires with no sale and no renewal signed by either party. What is the status of the agency relationship?
- AIt requires a court order to terminate
- BIt continues automatically on a month-to-month basis
- CIt automatically converts to an open listing
- DIt terminates by expiration of the agreed time period
Show answer & explanationAnswer & explanation
Correct answer: D. It terminates by expiration of the agreed time period
Listing agreements terminate automatically when their stated term expires, unless extended by mutual written agreement. No further action or renewal is needed for termination to occur.
Why the other options are wrong
- A. No court action is needed; expiration ends the agreement by its own terms.
- B. Agency does not automatically continue past the stated expiration without a new agreement.
- C. Listings do not automatically convert to a different type upon expiration.
Termination by Expiration
An agency agreement automatically ends when its stated time period lapses without renewal.
- No action required by either party
- Common in listing agreements with a set term
- Contrasts with termination by mutual agreement or operation of law
Memory trick: Time's up means agency's done