New Jersey Real Estate License 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: Termination of an agency relationship can occur due to various reasons, with death being a significant factor.
Option A is valid because the death of either the buyer or the broker automatically dissolves the agency relationship under the law.
Option B is incorrect, as the death of a sales associate does not affect the primary agency agreement between the buyer and the broker.
Option C suggests cancellation by one party, which typically requires mutual consent unless specified in the agreement, thus not representing operation of law.
Option D implies mutual agreement to cancel, which is a voluntary action rather than a legal termination, making it incorrect.
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