14. Fred is a licensee at ABC Realty and he has a listing to sell 123 Main Street. The listing will not expire for 70 more days. If Fred decides to move his license 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 Fred moves his license to QRS Realty, the listing for 123 Main Street remains with ABC Realty, as the listing contract is between the seller and the brokerage firm, not the individual agent. Thus, any commission rights will be governed by ABC Realty's policies regarding listings and commission entitlements.
A) Fred cannot qualify for any part of the commission even if Fred finds a buyer who purchases 123 Main Street during the listing period.
This option is partially correct in that Fred may not qualify for a commission if he is no longer affiliated with ABC Realty; however, it does not address the fact that the rights to the listing and commission depend on the brokerage's policies. Thus, while Fred may not qualify, the explanation is incomplete regarding the firm ownership of the listing.
B) It is Fred's listing so he will automatically get the listing commission when the property sells regardless of the change of brokerage companies.
This statement is incorrect as it misrepresents the relationship between agents and listings. The listing belongs to ABC Realty, not Fred personally. Therefore, he cannot automatically receive a commission simply because he was the listing agent if he changes brokerages.
C) Fred can inform both the seller and the principal broker of ABC Realty that he is moving the listing to QRS Realty and continue to market the property.
This option is incorrect because the listing is tied to ABC Realty, and Fred cannot unilaterally move it to QRS Realty. The listing agreement allows ABC Realty to manage the sale, and Fred's move would not transfer the listing rights to his new brokerage.
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 statement accurately reflects the situation. Since the listing is owned by ABC Realty, any commission rights are subject to the firm's policies, reinforcing that Fred's change of brokerage does not alter the listing's ownership.
Conclusion
The correct answer, D, correctly identifies that the listing is owned by ABC Realty, and thus any commission rights will be dictated by the firm's policies. Options A, B, and C incorrectly interpret the nature of listings and commissions in real estate, ultimately failing to acknowledge the brokerage's ownership of the listing.