Most agents readily recognize that they are licensed with a broker and are unable to be licensed with two brokers at the same time. Thus, the agent works for one broker and only that one broker.

How or when would an agent work for two brokers at the same time? Simple. Mark works for broker Jennifer, and one day decides to leave Jennifer’s company. Mark approaches Jennifer and tells her that he decided to leave and go work for Richard. While disappointed, Jennifer agrees to review Mark’s activity to determine what needs to be done with any listings or contracts, property management agreements, etc. Mark has no listings, yet has two deals in escrow, one closing in 3 weeks and the other closing about 5 weeks later.

Jennifer should instruct Mark on what happens with those deals. Jennifer should tell him that she will either work the deals or assign the deals to another agent in the company, and Mark will be paid, when the deal closes, according to his IC Agreement and/or Commission Agreement. Jennifer should also warn Mark not to do anything involved in those two deals, since if he does, he would be working for two brokers at the same time. Working a deal still at Jennifer’s company, while licensed with Richard’s company violates several state statutes, specifically  ARS §32-2153.A.8

That being said, sadly, Jennifer often tells the agent the wrong instructions. Those might be “sorry you are leaving, but if you want to be paid, you need to work those deals to closing…” If Jennifer says that, Jennifer is telling the agent to violate state statute.

If you decide not to talk to Jennifer, go on-line to ADRE and sever your license from Jennifer, you would be required to check the box affirming that three items are true; 1. you will not work for more than one broker at any time 2. you will settle any business issues with Jennifer and return any corporate collateral material, and 3. You have settled any financial issues with Jennifer.

If you check that affirmation box, yet violate any of that, you are violating state statute. The penalty could be severe.

Often there is a conversation about transferring the deal from Jennifer to Richard. Jennifer might even suggest that, yet it is not commonly done. In most cases, Richard does not want the deal for many reasons, mostly that he did not approve the deal, the terms, the forms, nor supervised the agent on the deal. And if transferred, the buyer and seller must agree in writing that the deal is being transferred from Jennifer to Richard.

It is probably best just to leave it with Jennifer, let her work it or assign it, and then Jennifer pays everyone when it closes. Mark would be paid according to his agreements with Jennifer, and Jennifer is allowed to pay the commission directly to Mark, (per ADRE Substantive Policy 2005.08) and not through Richard. In most cases, Richard does not want the money since they have no file to attach it to.