Which of the following scenarios is an example of an agency relationship terminating due to 'mutual agreement'?

Question: Which of the following scenarios is an example of an agency relationship terminating due to 'mutual agreement'?

Answer options:

• A seller client decides to cancel their listing agreement because they no longer wish to sell their property.
• A real estate associate's license is suspended, making them unable to provide services to their client. ✅ A buyer client and their designated agent agree to mutually end their buyer brokerage agreement before purchasing a property.
• A property listed for sale is destroyed in a fire, making the listing agreement impossible to fulfill.

Correct answer: A buyer client and their designated agent agree to mutually end their buyer brokerage agreement before purchasing a property.

Explanation: Termination by mutual agreement occurs when both the principal and the agent agree to end their agency relationship. In this case, the buyer client and the designated agent explicitly agree to cease the buyer brokerage agreement, fulfilling this condition. This is one of the ways an agency relationship can terminate under common law.