Tennessee Real Estate Practice Exam

What should happen when a listing agent successfully sells a property after leaving a company?

1. The agent will receive a commission

2. The commission is forfeited

3. They can negotiate for a fee

4. The commission is split with the firm

The correct answer is: The agent will receive a commission

When a listing agent successfully sells a property after leaving a firm, they are typically entitled to receive a commission for the sale if the sale is based on listings they had before their departure. This is grounded in the principle that agents are often entitled to their earnings for transactions initiated during their tenure with the brokerage. In many cases, the specifics of commission entitlements will be outlined in the agent's contract with the brokerage, as well as any agreements that may address post-employment circumstances. If the agent had a valid listing agreement in place and the sale occurs due to their efforts, it is standard practice for them to receive the commission even after having left the firm. It’s important to highlight that this situation may vary depending on state laws and the policies of the brokerage, which is why clear communication and contracts are vital in the real estate industry. Consequently, the agent's ability to receive a commission is not arbitrarily decided but often a matter of established legal and contractual rights.