Common Question answered by the staff of the MAR Legal Hotline.
Q. I am a licensed salesperson and have decided to leave my office to join another firm. I have two active listings. My new broker has advised me that I cannot take my listings with me without consent of my current broker and my client. Is my new broker correct?
A: Your new broker is correct. Massachusetts law requires that listing contracts be executed between the seller and the broker, rather than the salesperson. Absent an agreement between you and your broker stating otherwise, the listing will remain with the broker, even if you leave that office. If, however, your current broker agrees to release the listings to the new office, the seller must agree. Remember, the listing agreement was executed between the seller and the broker, and the seller has no requirement to follow you to another firm even if the current broker has given you permission to do so.
It is highly recommended that when you join any office you include specific provisions in your independent contractor agreement that clearly explain how listings you have at the time of your termination (whether voluntary or involuntary) will be handled. It is much simpler to have this conversation when you join an office, rather than when you leave.