Question 68

The listing remains the property of the original firm.

When a licensed affiliate broker switches firms before the expiration of a listing contract, the listing does not automatically transfer to the new firm. Instead, it remains the property of the original firm with which the contract was signed.

A) The affiliate broker can take the listing with him to his new firm, but the new firm must split any commission with the former firm.

This statement is incorrect because the listing contract is legally binding to the original firm. The affiliate broker cannot take the listing with him, and therefore, there is no commission to be split.

B) The affiliate broker can take the listing with him and it becomes the property of his new firm.

This option is also incorrect since the listing is bound to the original firm through the contract. It cannot simply become the property of the new firm just because the broker has switched.

C) The listing remains the property of the original firm.

This is the correct statement. The original firm retains ownership of the listing regardless of the broker's decision to leave, as the listing agreement is tied to the firm, not the individual broker.

D) The listing is automatically cancelled.

This statement is false as well. The listing does not get cancelled automatically when a broker changes firms; it remains valid and in effect until its expiration or unless it is terminated by mutual consent.

Conclusion

The correct answer, that the listing remains the property of the original firm, is supported by the legal principles governing real estate listings and contracts. Options A, B, and D fail to recognize the binding nature of the listing agreement, demonstrating why they are incorrect. Option C accurately reflects the legal standing of the listing after the broker's firm change.