Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresHard
A Florida real estate broker has decided to close their brokerage firm. What is the broker's primary responsibility regarding their active listings upon closure?
- AHold the listings until new buyers are found, then process the transactions.
- BImmediately cancel all active listings.
- CReturn the listings to the sellers, who then have to find a new broker.
- DTransfer all active listings to another active broker with the seller's written consent.
Show answer & explanationAnswer & explanation
Correct answer: D. Transfer all active listings to another active broker with the seller's written consent.
Upon closure, the broker must arrange for the transfer of active listings to another active broker, but only with the express written consent of the sellers. The broker cannot unilaterally cancel or hold the listings.
Why the other options are wrong
- A. The broker's license becomes inactive or ceases to exist for that firm, making it impossible to process transactions.
- B. Canceling listings prematurely without seller consent could lead to breach of contract claims.
- C. While the sellers will need a new broker, the current broker has a responsibility to facilitate an orderly transition, typically through transfer, not just returning them.
Brokerage Closure Procedures (Listings)
When a brokerage closes, the broker must transfer all active listings to another active broker, provided the sellers give their express written consent for the transfer.
- Transfer to another active broker.
- Requires seller's written consent.
- Ensures continuity of service.
Memory trick: Closing the door means handing over the keys to the clients' contracts.