Chapter 7: terminating an agency

Fulfillment of Purpose

And agency relationship terminates when it's purpose has been fulfilled

Expiration of agency term

And agency terminate automatically when it's term expires. If the agency agreement did not include an expiration date, it is deemed to expire within a reasonable time. If there is no expiration date, either party may terminate the agency without liability for damages.

Termination by the principal revocation

In the absence of mutual agreement, the principal can revoke the agency at any time.

Termination by Operation of Law: under general agency law, several events terminate an agency relationship automatically, without action by either party. These events include

Term expires Fulfillment of the purpose of the agency The death, incompetence, or bankruptcy of either party. Extinction of the subject matter.

Under general agency law, an agency can be terminated in several different ways

Termination by actions of the parties, and terminatipn by operation of law.

termination of agency by mutual agreement

The parties may terminate the agency by mutual agreement at any time. If the original agreement was in writing, the termination agreement should also be in writing

Principal revokes

The principal may revoke the agency by firing the agent whenever he wishes.

Extinction of subject matter

The subject matter of a real estate agency is the property in question. If the property is in anyway extinguished meaning sold or destroyed, the agency automatically terminates

Death, and competency, or bankruptcy

When one of these things happens to the principal, the agents actions are no longer authorized, even before the agent has been informed of the terminating event.