Florida Broker Practice Exam

Which event would NOT terminate a brokerage relationship?

1. Death of the seller's broker

2. Revocation of the relationship by the principal

3. Change in governmental policy

4. Mutual agreement to terminate

The correct answer is: Change in governmental policy

A change in governmental policy would typically not terminate a brokerage relationship because such changes usually do not directly affect the contractual obligations and relationships established between the broker and the client. Brokerage relationships are primarily governed by the agreement between the parties involved, and while governmental policies can impact real estate transactions in broader ways, they do not inherently dissolve the relationship. In contrast, the death of the seller's broker, the revocation of the relationship by the principal, and a mutual agreement to terminate are all events that can lead to the end of a brokerage relationship. The death of a broker may leave the client without representation, the principal has the authority to revoke the relationship at any time, and both parties can agree to end the relationship voluntarily, thus ensuring that any choice they make regarding the continuation or cessation of their engagement is valid.