Texas Crammer Practice Exam

What was the consequence of the salesperson's agreement to write the offer contrary to the listing terms?

1. The agency relationship is terminated

2. The terms are binding for the agent

3. The agent must refund the buyer

4. The seller must accept the offer

The correct answer is: The agency relationship is terminated

When a salesperson agrees to write an offer that contradicts the listing terms, it typically results in the termination of the agency relationship. The agency relationship is built on mutual trust and adherence to the stipulated terms between the agent and the principal (the seller). By deviating from the established listing agreement, the salesperson undermines that trust and is acting outside of their authorized capacity. The agency is fundamentally based on the agent’s duty to act in the interests of the principal, and by not following the listing terms, the agent can no longer fulfill that duty effectively. This breach can lead the seller to feel that their interests are not being properly represented, which may prompt them to terminate the relationship with the agent. This context emphasizes the importance of adherence to established terms and conditions in real estate transactions and the potential ramifications of failing to do so, including ending the agency relationship between the agent and the seller.