Question 68

The listing remains the property of the original firm.

In the case of a licensed affiliate broker switching firms before the listing contract expires, the listing remains the property of the original firm. This is due to the contractual obligations that bind the listing to the firm with which it was originally created.

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 option is incorrect because the listing is not transferable to the new firm. The original firm retains ownership of the listing, and any commissions are not subject to a split since the listing does not move with the broker.

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

This statement is also incorrect. Listings are tied to the firm that holds the contract, not the individual broker. Therefore, when the broker switches firms, the listing does not automatically become the property of the new firm.

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

This is the correct answer. A listing is a contractual agreement that belongs to the firm that created it, regardless of any changes in the broker's employment. The original firm retains all rights to the listing until its expiration or cancellation.

D) The listing is automatically cancelled.

This option is inaccurate as it implies that a broker’s departure from a firm nullifies any existing listings. In fact, a listing remains valid and enforceable by the original firm until the contract term concludes or is formally terminated.

Conclusion

The correct answer is that the listing remains the property of the original firm, which upholds the integrity of contractual agreements in real estate. All other options fail to recognize that listings are firm-owned, not broker-owned, emphasizing the importance of understanding real estate contract law in such scenarios.