Florida Broker Practice Exam

Which of the following is NOT a reason for the termination of a brokerage relationship?

1. Death of the broker

2. Mutual agreement to terminate

3. Expiration of the relationship

4. Change of ownership of the property

The correct answer is: Change of ownership of the property

The correct answer is that a change of ownership of the property is not a reason for the termination of a brokerage relationship. Brokerage relationships can exist independently of ownership; thus, the sale or transfer of property does not automatically dissolve the contract between the broker and the client. The brokerage relationship typically maintains its validity until one of the other reasons such as death of the broker, mutual agreement to terminate, or expiration of the relationship occurs. In contrast, the other options directly affect the validity of the brokerage relationship. The death of the broker would typically terminate their ability to act on behalf of clients as there would no longer be a licensed professional available to conduct brokerage activities. A mutual agreement to terminate indicates that both parties have come to a consensus to end the relationship, while expiration of the relationship refers to the completion of the term or timeframe for which the brokerage services were contracted. These factors are definitive circumstances under which a brokerage relationship naturally concludes.