9. A licensee at ABC Realty has a listing to sell a property. The listing will not expire for 70 more days. If the licensee decides to move to QRS Realty, what is the status of the listing?
Answer: D
The listing belongs to the firm, ABC Realty, and the rights to a commission if the property sells during the listing will be determined by the policies of ABC Realty.
When a licensee changes brokerages, the listing agreement remains with the original firm, ABC Realty, which means the rights to any commission earned during the listing period are governed by the firm's policies.
A) The licensee cannot qualify for any part of the commission even after finding a buyer to purchase the listing during the listing period
This option is incorrect because while the licensee may not qualify for the commission if they leave the brokerage, the situation is more nuanced as it depends on the policies of ABC Realty regarding commission distribution and the contractual obligations of the listing agreement.
B) The licensee's listing and will automatically get the listing commission when the property sells regardless of the change of brokerage companies
This option is also incorrect. The licensee does not automatically earn the commission because the listing agreement is tied to ABC Realty, and the commission is subject to the brokerage's policies, which could negate entitlement upon leaving.
C) The licensee can inform both the seller and the principal broker of ABC Realty about moving the listing to QRS Realty and continue to market the property
This statement is misleading. While the licensee can inform parties of their move, they cannot legally transfer the listing to another brokerage without the consent of the original firm, which would typically require the listing to remain with ABC Realty until its expiration.
D) The listing belongs to the firm, ABC Realty, and the rights to a commission if the property sells during the listing will be determined by the policies of ABC Realty
This option is correct. The listing agreement is with ABC Realty, meaning the firm retains the rights to the listing and any commission earned, irrespective of the licensee's change of brokerage. The policies of ABC Realty will dictate any commission entitlement.
Conclusion
The correct answer, D, underscores the principle that real estate listings are owned by the brokerage, not the individual licensee. Consequently, moving to a different brokerage does not transfer the listing rights, and the commission status remains under the original firm's policies. All other options fail to recognize this essential aspect of real estate practice.