Humber/Ontario Real Estate Course 3 Exam Practice

What governs the end of agency relationships when a brokerage's registration is revoked?

1. Agent misconduct

2. Expiry of agreement

3. Illegal contracts

4. Illegality

5. Renegotiation

6. Seller request

The correct answer is: Illegality

The end of an agency relationship is governed by the principle of illegality when a brokerage's registration is revoked. This means that the relationship between the agent and the client becomes illegal, and therefore cannot continue. Option A is incorrect because agent misconduct may lead to the termination of the agency relationship, but it is not necessarily tied to the brokerage's registration being revoked. Option B is incorrect because the expiry of an agreement does not necessarily mean the end of an agency relationship. Option C is incorrect because although illegal contracts can lead to the termination of an agency relationship, it is not specifically tied to a brokerage's registration being revoked. Option E is incorrect because renegotiation does not necessarily mean the end of an agency relationship, and it is not specifically tied to a brokerage's registration being revoked. Option F is incorrect because a seller's request to end an agency relationship does not necessarily involve the revocation of a brokerage's registration. Therefore, the correct answer is D as it specifically addresses the scenario of a revoked brokerage registration leading to the end of an agency relationship.