Free Pennsylvania Real Estate Practice Exam Practice Question
A principal MAY terminate an agency agreement when the:
Correct Answer: B
Rationale: A principal may terminate an agency agreement when the parties mutually agree in writing, as this reflects a consensual decision to end the relationship, ensuring both parties are in agreement.
Option A is incorrect because a principal's dissatisfaction with an offer does not justify termination; the agreement remains in effect until its terms are fulfilled or legally terminated.
Option C is also incorrect; personal feelings about a broker’s salesperson do not provide a legal basis for termination unless specified in the agreement.
Option D is wrong since an agency coupled with an interest typically cannot be revoked unilaterally, as it involves vested rights in the property.
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