Tennessee Realtor State Practice Exam

What allows Bob to bring two listings from his old firm to a new brokerage?

1. Verbal agreement with clients

2. Agreement from the new brokerage

3. Written permission from the releasing broker

4. Personal ownership of listings

The correct answer is: Written permission from the releasing broker

The correct answer is rooted in the principle of ownership and transferability of listings within real estate brokerage practices. Written permission from the releasing broker is essential when an agent transitions from one brokerage to another. This permission typically comes in the form of a release agreement that confirms the agent is allowed to take specific listings with them. In real estate, listings are essentially contracts between the brokerage and the client, binding the firm’s resources to the listings until they are terminated or properly transferred. Without the releasing broker's written permission, taking listings from a previous brokerage could lead to legal implications and disputes over ownership. The other responses do not hold the same weight in practice. For instance, a verbal agreement with clients does not provide a legal basis for transferring listings, as it lacks the necessary formality and documentation. Similarly, having an agreement from the new brokerage alone does not provide authority to take listings from the former brokerage without the releasing broker's consent. Personal ownership of listings would imply direct ownership of the contracts, which is not the standard practice in real estate; instead, brokerages own the listings even if an agent has secured them.