Iowa Real Estate Practice Exam

What is the legality of a salesperson asking a seller to cancel their listing to relist with a new broker after leaving the former broker?

1. It is legal with the seller's consent

2. It is lawful as long as it is done transparently

3. It is unlawful because the agent cannot take listings

4. It is permissible if compensated

The correct answer is: It is unlawful because the agent cannot take listings

The legality of a salesperson asking a seller to cancel their listing with a former broker to relist with a new broker hinges on the contractual obligations between the seller and the original broker. When a property is listed with a broker, a legally binding listing agreement is in place, which typically includes terms about the duration of the listing and the obligations of each party. In this scenario, a salesperson is not allowed to request that a seller cancel a listing unless the current listing agreement allows for it based on specific circumstances, such as the listing expiring or being terminated lawfully according to the terms set out in the agreement. If the agent has already departed from their previous brokerage, they do not have the legal right to influence or alter the terms of an existing listing agreement. This practice could be viewed as interfering with the contractual relationship between the seller and the original broker, which is generally not permitted under real estate law. Other choices in the question suggest that there might be ways this could be acceptable under various conditions, but each of these options fails to account for the binding nature of the original listing agreement. Thus, option C is the correct response, as it accurately reflects the principle that a salesperson cannot take or solicit listings from a seller while an existing agreement is