easy · National Real Estate Exam

An agent is representing a seller whose home is completely destroyed by a fire.

What is the status of the agency relationship?

  1. The agent can sue the seller for the commission because the fire was the seller's fault.
  2. The relationship is terminated because the subject matter no longer exists.
  3. The agency continues if the seller intends to rebuild the home immediately.
  4. The agent must now attempt to sell the vacant lot at the same commission rate.

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