Question:  I am an agent sponsored by ABC Brokerage Company. My best friend is an agent sponsored by XYZ Brokerage Company. We have a mutual friend that is getting ready to list their home and has asked us if we could BOTH represent him for the sale. Is a co-listing between agents at two different brokerages allowed under license law?

Answer: Maybe, if done correctly. The first step here would be for each agent to have a discussion with their respective designated managing broker to see if this arrangement would be permitted under each brokerage’s office policy. If there is to be a co-listing between two separate brokerages, we would recommend that each brokerage consult with their attorneys, insurers and advisors to determine if this makes good business sense, and if it does, how to navigate the relationship in light of license law.

You must keep in mind that the Real Estate License Act permits a licensee to have only one sponsoring broker at a time, and that is where the licensee performs their licensed activities. License law also states that licensees are to be paid by their own sponsoring broker for those licensed activities. License law rules will still have to be followed even in a co-listing relationship.

If both brokerages agree to ‘join forces’ on a listing, then a written agreement should be drafted defining each brokerage’s (and agent’s) duties, rights, responsibilities and compensation as to the co-listing. (This agreement is separate from the listing agreement with the client.) How will communication with the client (and between the agents) be handled? How would a dispute between the agents be handled? For example, what if one agent wants to advise the client on an offer/negotiation, but the other agent disagrees with that advice? This co-listing agreement should be finalized before placing both brokerage companies’ names on the listing agreement with the seller client. To remain compliant with license law, both agents need to continue to work for and be paid by their respective brokerage companies.