Under what circumstance can a broker terminate an agency agreement early?

A broker can terminate an agency agreement early if the principal is not cooperating with the broker's efforts. In agency relationships, cooperation between the principal and the agent is crucial for the successful execution of the agreement. If the principal is not providing the necessary support, information, or access to the property, it impedes the broker's ability to perform their duties effectively. This lack of cooperation can lead to a breakdown in the relationship, justifying the broker's decision to terminate the agreement.

Other factors like the principal refusing to pay might lead to challenges in the agency relationship but would typically not provide an outright reason for termination unless stipulated in the agreement itself. A decrease in property value does not inherently affect the validity of the agreement nor grants the broker the right to terminate it. Additionally, the number of sales made by the agent is more indicative of market conditions or business performance than a reason for termination, as agents can still navigate through periods of low sales while working within the terms of the agency agreement.