81. 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 since the listing agreement is between the seller and the brokerage, not the individual licensee. Therefore, the rights to any commission are governed by ABC Realty's policies.
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 incorrect because, while Fred may not directly qualify for the commission after moving to QRS Realty, this statement does not capture the full context. The commission rights are determined by the brokerage firm, not solely on whether Fred finds a buyer.
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 option is misleading. The listing belongs to ABC Realty, not Fred personally. Thus, even if he finds a buyer, he will not automatically receive the commission due to his change of brokerage.
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 as listings cannot simply be transferred between brokerages without following specific procedures. The listing agreement is with ABC Realty, and Fred cannot unilaterally move it to QRS Realty.
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 is correct. The listing agreement is a contract between the seller and ABC Realty, meaning that any commission rights are subject to the policies of ABC Realty, regardless of Fred's change of brokerage.
Conclusion
The correct answer is D because it accurately reflects the contractual nature of real estate listings, which are held by the brokerage rather than the individual agent. Options A, B, and C misinterpret the implications of the brokerage relationship and Fred's rights after moving his license, thereby failing to capture the essential principles of real estate commission structures.