National curriculum lesson 95 · Agency

Termination of Agency

Agency can terminate by completed purpose, expiration, mutual agreement, revocation by the principal, renunciation by the agent, death or incapacity where applicable, destruction of the subject, bankruptcy, illegality, or other operation of law. A party may have power to end authority but still owe damages for wrongful early termination. Confidentiality, accounting, and accrued compensation can survive.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

Official syllabus mapping for Termination of Agency
Roadmap lesson	95 of 500
Official syllabus topic	Termination of Agency
Official PSI area	Agency
Published area weight	13% of the 100-question national portion
Exam portion	National salesperson portion
Source edition	PSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verified	August 2, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

Purpose and time

Performance of the authorized objective or expiration of the stated term ends authority without requiring a breach.

Mutual or unilateral ending

Parties can mutually terminate. Revocation and renunciation end authority in many circumstances but may breach a contract if exercised without a contractual or legal right.

Operation of law

Death, incapacity, destruction, illegality, or bankruptcy can end or alter authority depending on the agency type and applicable law.

Surviving duties

The agent must return property and account for funds. Confidentiality and obligations arising before termination can continue, and a protection clause may preserve compensation rights.

Decision rule

Separate the end of authority from contractual liability and duties that survive.

Georgia-specific distinction

Georgia written brokerage engagements should state duration and termination. Georgia licensees must still account for trust funds, protect confidential information, maintain required records, and follow broker instructions after representation ends.

Worked example

Scenario. A seller revokes a six-month exclusive listing after one month without a contractual ground.

Reason it through. The seller can communicate that the broker no longer has authority, but early revocation may violate the listing contract.

Answer. Agency authority can end while a possible contract claim remains.

Common exam traps

Assuming termination erases damages
Revealing confidential information afterward
Ignoring protection periods
Keeping client property after termination

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

What usually occurs when the agency's purpose is completed?

A. Termination by performance
B. Automatic novation
C. Escheat
D. Subordination

Show answer and explanation →

Answer: A. Termination by performance

Completion of the authorized purpose ends the agency relationship.

Question 2

Can confidentiality survive termination?

A. Yes
B. No
C. Only for sellers
D. Only for one day

Show answer and explanation →

Answer: A. Yes

Confidential information generally remains protected subject to legal disclosure duties.

Question 3

Does ending authority automatically eliminate contract liability?

A. Yes
B. No
C. Only in open listings
D. Only at closing

Show answer and explanation →

Answer: B. No

Wrongful revocation or renunciation can end authority but leave a claim for breach.

Mastery tracking

Mark this lesson mastered only when every statement is true.

State the direct answer and decision rule without notes.
Explain every core concept in plain English.
Solve the worked example after changing one important fact.
Identify the Georgia distinction before reading answer choices.
Answer all three questions correctly and reject every distractor.
Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Seller Property Disclosure. Continue to roadmap lesson 96 and build on this decision rule.

Return to the Agency hub to see every official branch and the complete lesson sequence for this content area.

Termination of Agency questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Termination of Agency on the Georgia real estate exam?

Yes. It belongs to PSI's Agency content area, which is 13% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Termination of Agency?

Separate the end of authority from contractual liability and duties that survive.

What Georgia-specific distinction should I remember?

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.