Under what circumstance would a written service agreement for designated agency in Alberta typically terminate?

Question: Under what circumstance would a written service agreement for designated agency in Alberta typically terminate?

Answer options:

• When the designated agent decides they no longer wish to represent the client. ✅ Upon the successful completion of the transaction (e.g., closing of the sale).
• If the client finds a property privately and no longer requires the agent's services.
• When the brokerage owner instructs the designated agent to transfer the client to another agent.

Correct answer: Upon the successful completion of the transaction (e.g., closing of the sale).

Explanation: An agency agreement, including designated agency, typically terminates upon the successful completion of the purpose for which it was created, such as the closing of a real estate transaction. This is a standard termination condition for contracts, outlined in agency principles and reflected in RECA's rules on service agreements.