Question 37

The listing remains the property of the original firm.

When a licensed affiliate broker acquires a listing, that listing is typically considered the property of the firm they represent. If the broker switches firms before the listing contract expires, the listing does not transfer to the new firm but remains with the original firm.

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 affiliate broker cannot take the listing to the new firm. The listing is tied to the original firm, and any commission arrangement would not apply as the listing itself cannot be carried over.

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

This option is also incorrect. The listing remains the property of the original firm, and transferring it to a new firm is not permissible under standard real estate practices. The broker cannot claim ownership of the listing after switching firms.

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

This statement accurately reflects the situation. The listing contract is binding to the firm that holds it, meaning that if an affiliate broker changes firms, the listing does not follow and remains with the original firm until the contract expires or is otherwise resolved.

D) The listing is automatically cancelled.

This option is incorrect. The listing is not automatically cancelled when a broker switches firms. It remains in effect with the original firm unless the firm and client agree to terminate it, which is a separate process.

Conclusion

The correct answer is C, as it accurately describes the legal standing of real estate listings under contract. All other options fail because they incorrectly suggest that the listing can be transferred to a new firm or automatically terminated, disregarding the contractual obligations binding the listing to the original firm.