A licensee transferring to a new broker may continue to act as a licensee for the former broker with regard to transactions begun prior to the transfer. Which of the following statements is incorrect concerning this situation?

A licensee transferring to a new broker may continue to act as a licensee for the former broker with regard to transactions begun prior to the transfer. Which of the following statements is incorrect concerning this situation?

• A. Both brokers must agree in writing
• B. The transactions on which the licensee will act must be specified
• C. The new broker agrees in writing to assume responsibility for the licensee's actions
• D. The agreement must express the terms under which the licensee will be compensated by the former broker

Answer: (C)

In this context, when a licensee transfers to a new broker but still acts for their former broker in ongoing transactions, it is crucial that certain conditions are met to ensure compliance with Georgia Real Estate License Laws. The option stating that the new broker agrees in writing to assume responsibility for the licensee's actions is incorrect. Under Georgia law, the new broker is not required to take on responsibility for the actions of the licensee related to transactions initiated while the licensee was still affiliated with the former broker. Responsibility for those actions typically remains with the former broker as long as the transactions were initiated before the transfer. This delineation is important for maintaining the accountability and authority of each broker within their respective scopes of responsibility. In contrast, both brokers must indeed agree in writing, the transactions on which the licensee will act must be specifically outlined, and there must be a clear agreement expressing the terms of compensation from the former broker to the licensee. These elements ensure clarity and legal protection for all parties involved in the transaction.

In this context, when a licensee transfers to a new broker but still acts for their former broker in ongoing transactions, it is crucial that certain conditions are met to ensure compliance with Georgia Real Estate License Laws.

The option stating that the new broker agrees in writing to assume responsibility for the licensee's actions is incorrect. Under Georgia law, the new broker is not required to take on responsibility for the actions of the licensee related to transactions initiated while the licensee was still affiliated with the former broker. Responsibility for those actions typically remains with the former broker as long as the transactions were initiated before the transfer. This delineation is important for maintaining the accountability and authority of each broker within their respective scopes of responsibility.

In contrast, both brokers must indeed agree in writing, the transactions on which the licensee will act must be specifically outlined, and there must be a clear agreement expressing the terms of compensation from the former broker to the licensee. These elements ensure clarity and legal protection for all parties involved in the transaction.