Tennessee Real Estate Practice Exam

Do you receive a commission if you leave a firm and the property you listed sells?

1. No, you do not receive a commission

2. Yes, always receive a commission

3. Only if the sale finalizes within a certain timeframe

4. Dependent on the firm's policy

The correct answer is: Yes, always receive a commission

In real estate transactions, the right to receive a commission is typically tied to the listing agreement between the agent and their brokerage. If an agent leaves a firm, there are specific terms outlined in the contract governing commission entitlement. Generally, a selling agent does not receive a commission for a property listed with their previous firm once they are no longer affiliated with that firm, unless explicitly stated otherwise in the agreement. The correct response indicates that commissions are not guaranteed after departure from a firm. Each brokerage may have its policies regarding commission entitlements when an agent leaves, which is why it's important for agents to understand their agreements thoroughly before making any changes to their employment status. Therefore, the notion that one would always receive a commission regardless of their employment situation does not align with standard practices in real estate. Understanding these policies can influence an agent's decision to stay with a firm or to move elsewhere, highlighting the importance of knowing the terms in their contracts.