After successfully completing this topic, you will be able to list the events that will cause an authorized relationship to be terminated.
An authorized brokerage relationship disclosure is not the same as a brokerage contract. The relationship simply spells out the broker’s obligations to the principal or the customer that are required by law. The customer makes no promises and is under no obligation from the notice.
A brokerage relationship is often terminated when the purposes of the relationship have been achieved. An example would be that when the buyer has closed on the purchase of a house, the transaction broker relationship is extinguished.
A customer may also revoke a brokerage relationship if the customer feels that the broker is not performing in a way the customer expects.
If the customer dies, the relationship would be terminated.
The brokerage relationship may be terminated by abandonment. For example, if a broker fails to call a buyer to show homes, there will be no relationship until the broker begins working with the buyer again.