Real-estate agency agreements are contracts between the brokerage and the client, not the individual agent. When an agent moves to a new brokerage, existing listings stay with the original broker unless the client agrees otherwise. Agents should ask permission before transferring listings and prepare to lose clients tied to the brokerage's brand.
Today's question is about the delicate dance that a real estate agent performs when changing brokerages. This is one of the hardest things to do, even though it's good for your business. It can be hard on your clients because there is a lack of understanding of how real estate operates. In real estate, the agency agreement that is put into place between an agent and the home seller in a listing, or the agent and the buyer in a buyer brokerage agreement, is between the brokerage and the client, not the agent. The agent is the one who signs on behalf of the brokerage. Y'all, the public needs to understand this. And so I implore you, as you're having consultations with potential clients, that you explain to them with whom they're signing. Because if you get all the paperwork done with the fella who's selling the house on Elm Street, and then you make a change from Brokerage A to Brokerage Z, the agreement is with Brokerage A. So you, the agent, are moving. That means that the fellow selling is officially on paper with Brokerage A. Now, he would probably rather go with you because we also know that the public builds relationships with the independent agent. So as an agent, ideally you've spoken to both of your brokers and said to Broker A, "I'd like to bring this listing with me Do I have your permission? And then work out the details. Whenever you do make a change, you have to understand this, real estate friends. You might lose that piece of business because you might think that they really love you and that you are just that amazing. But in reality, they may want to be with that brand for something you can't control. And you need to have enough strength of business to let it go and say, I wish you the best, my fella. I hope that the agent they assign to you is better than me. And that you have an amazing experience. Then as you move, you prepare to go find new pieces of business.
