hard · National Real Estate Exam agency
A seller who signed a listing agreement dies unexpectedly while a signed purchase contract is still pending, before closing. The listing broker had been actively negotiating repairs with the buyer's agent at the time of death.
As to the broker's agency authority to keep negotiating on the seller's behalf, the seller's death:
- Transfers the agency automatically to the buyer's own side's agent
- Terminates the agency at once, so new authority must come from the estate
- Has no effect, since the already-pending purchase contract binds the estate
- Suspends the agency for exactly 30 days, then it resumes if unopposed
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