Terminating Brokerage Relationships

Agency relationships are like contracts—they don't last forever. They can end in a variety of ways, some happy and some not. Here is how the bond between a Broker and a Principal is broken:Fulfillment of Purpose (The Happy Ending)This is the goal. You were hired to sell the house, and you sold the house. Once the closing takes place and the deed is transferred, the job is done, and the agency relationship ends automatically.Expiration of TimeMost listing agreements have a ticking clock (e.g., "This agreement is valid for 6 months"). If the time runs out and the house hasn't sold, the relationship expires and ends.Destruction of PropertyIf the house burns down or is swallowed by a sinkhole, the "subject matter" of the relationship is gone. You can't sell a house that doesn't exist, so the relationship ends.