Question 18

An affiliate broker must complete the required procedures to change affiliation.

Changing affiliation from one brokerage to another requires the affiliate broker to follow specific procedures mandated by regulatory authorities or brokerage policies.

A) may transfer current listings from the old firm to the new one

This option is incorrect because transferring current listings typically requires permission from the original brokerage. Listings are considered property of the brokerage, and without proper protocols in place, they cannot be simply transferred by the affiliate broker.

B) must complete the required procedures to change affiliation

This option is correct as it highlights the necessity for the affiliate broker to adhere to established procedures when changing affiliation. Such procedures are in place to ensure compliance with brokerage regulations and protect the interests of clients and the brokerage itself.

C) may remove his license and post it at the new brokerage

This option is incorrect because an affiliate broker cannot simply remove a license from one brokerage and display it at another without following the proper procedures. Licensing is typically tied to the brokerage that holds it and must be formally transferred.

D) must notify clients of his intention to change

While notifying clients is a good practice, it is not a mandatory requirement in the process of changing affiliation. The primary focus should be on the completion of the required procedures to ensure a smooth transition.

Conclusion

The correct answer, B, emphasizes the importance of compliance with required procedures when changing brokerage affiliations. Other options either misrepresent the process or emphasize non-mandatory actions, reinforcing that following the proper protocols is essential for a successful transition.