What is the consequence of a seller’s death regarding agency?

The correct response indicates that a seller's agency is instantly terminated upon the seller's death. In the context of agency law, the relationship between the principal (the seller) and the agent (the broker) is inherently linked to the life of the principal. When the principal dies, the agency relationship cannot continue, as the agent's authority to act on behalf of the principal ceases. This means that any contracts or agreements the agent may have had on behalf of the deceased seller are no longer valid, and the agent cannot carry out any further actions related to the sale of the property.

Understanding this principle is important for agents and brokers, as it highlights the temporary nature of agency relationships in real estate, particularly emphasizing that the agency is based on the principal's ability to direct and authorize actions. Once that ability is removed due to death, the agency ends, reflecting the legal principle that an agency is a fiduciary relationship that cannot exist without an active principal.