Illinois Real Estate Exam Practice Question
A buyer had an agency relationship with a broker but it has been terminated due to operation of law. Which of the following circumstances could have caused this?
Correct Answer: A
Rationale: An agency relationship can be terminated by operation of law when an essential party to the agreement is no longer able to fulfill their role. The death of either the buyer or the broker (Option A) automatically ends the agency relationship, as it prevents either party from continuing to act in that capacity.
Option B, the death of the sales associate, does not affect the agency relationship between the buyer and the broker directly, as the associate is not a party to that agreement.
Options C and D involve voluntary actions by the parties that do not fall under 'operation of law.' C refers to a unilateral cancellation, while D indicates mutual agreement, both of which end the relationship but not by legal necessity.
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