Broker Westland dies and his daughter Susan, who is also a broker, inherits his business. With respect to his 50 current listings, which of the following is true?
A. Susan automatically receives commissions if any of those listings sell
B. She can call the sellers and tell them that she is now the listing broker
C. She is not the listing agent unless she negotiates a new listing agreement with each of those owners
D. She may no longer work with any of those clients
Ans: C. She is not the listing agent unless she negotiates a new listing agreement with each of those owners
Explanation: When Westland died, the agency relationship between him and each of his clients terminated by operation of law. Even though his daughter inherited his brokerage business, she would still have to enter into a new agency relationship with each seller in order to keep his listings.
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