PSI Virginia Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

The termination of agency can occur without explicit action from either party when the contract has an expiration date. This situation is a natural conclusion to the agency relationship; once the designated time period specified in the contract has lapsed, the agency automatically terminates. This contractual expiration does not require any further action from either the agent or the principal, as the terms set in the agreement govern the continuation or cessation of the agency.

In contrast, other scenarios, such as an agent retiring during the contract period, typically require some action or notification. The dissolution of the contract by mutual agreement also necessitates a deliberate decision and confirmation from both parties. Lastly, if one party simply changes their mind about the property, this would not automatically terminate the agency; a formal action or communication would generally be needed to sever the relationship. Hence, the expiration date provides an unequivocal and automatic resolution to the agency relationship.