Illinois Real Estate Broker Post-License Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

When a broker leaves a company, the active listing agreements are owned by the sponsoring broker, which is the brokerage firm the broker was associated with. This is an important distinction in real estate practice.

The rationale behind this ownership structure is based on the principle that listing agreements are legally binding contracts between the client (the seller or the landlord) and the brokerage firm, rather than with the individual broker. The brokerage firm is responsible for providing services to the client and has the authority to manage those agreements. This means the sponsoring broker retains control over the listing and associated responsibilities, even if an individual broker departs from the company.

This structure ensures continuity in service for the client and maintains the integrity of the real estate transaction process, as clients can still rely on the brokerage for fulfillment of the terms of the listing agreement. Hence, when the broker leaves, all active agreements remain with the brokerage, allowing the company to appoint another broker to manage those listings without interruption.