Idaho Real Estate Practice Exam

What action must a licensee take regarding their former broker when they change firms?

1. Request a recommendation

2. Turn in all property belonging to the broker

3. Contact the former clients

4. Sign a termination agreement

The correct answer is: Turn in all property belonging to the broker

When a licensee changes firms, it is essential to turn in all property belonging to the former broker. This includes not only tangible items like keys and signs but also any paperwork, files, or materials developed under the broker's supervision or ownership. This action is crucial because it ensures that the broker's proprietary information and resources are returned and maintained in accordance with legal and ethical standards. The requirement to return property is part of the fiduciary duty the licensee has towards the former broker, which includes respecting the broker's rights and maintaining professionalism during the transition of firms. This action also helps prevent any potential disputes between the licensee and the former broker regarding ownership of resources and client information. While requesting a recommendation from the former broker may be beneficial for the licensee's career, it is not a mandatory action associated with changing firms. Similarly, contacting former clients is often prudent, but it might not always be possible or appropriate, depending on the restrictions in place by the former broker regarding client communications. Signing a termination agreement may be necessary in some cases, but returning the broker's property takes precedence as an immediate action required during the transition.