This new form is created to help brokers in the situation where an agent leaves one brokerage company for another and continues to work on a listing or escrow. Failure to document the transfer to the new broker can be a DRE violation and presents problems for E&O coverage. Paragraph 1 acknowledges the transfer from original broker to a new broker. Paragraph 2 addresses whether the original broker will be paid for allowing the transfer of the listing. Payment can come from the seller or new broker. Paragraph 3 acknowledges and termination of the agency relationship with the original broker. Paragraph 5 directs the parties to comply with MLS requirements. Paragraph 7 defaults to the situation where the agent leaves the original broker for the new broker, but other less common situations are possible. The agent is not a party to the agreement, as listing belong to a broker and not the agent, but the agent acknowledges the agent’s responsibility for files. The three necessary signatures are for the principal, usually seller, and the original and new broker. Agent can sign but the agreement is valid without the agent’s signature.
Revised June 2021