Termination clause for Realtor

[Kalpesh Patel]

Hello Everyone,

Can someone please assist in interpreting following termination clause in realtor contract with broker?

Termination.

A. FOR CAUSE. In the event Contractor shall become in default of any provision of this Agreement, or otherwise fails to conduct himself/herself in accordance with the terms of this Agreement, or engages in conduct with is disloyal, disruptive or discrediting of the Market Center, Market Center may terminate this Agreement immediately and without notice.

B. WITHOUT CAUSE. Either party, without cause, may terminate this agreement at any time upon ninety (90) days prior written notice.

C. Upon termination, Market center shall release all currently active Contractors solo listings to Contractor. If Contractor shares listings or agency contracts with other Contractors in the Market Center, the listings or agency contracts shall remain with the market center. After Contractor's association with the Market Center terminates, Market Center will continue to pay Contractor's commissions on closed transactions in accordance with the commission splitting/capping policies that applied on the date of Contractor's termination. If Contractor owes Market Center any Participation Fees or any other amounts at the time Contractor's association with the Market Center terminates, or if any amounts become due after termination, Contractor authorizes Market Center to deduct the amount due from any commissions or other amounts due Contractor until Contractor's account with Market Center has been fully paid. 

Now, below are my questions:

1. Do I have to wait for 90 days to transfer realtor license after giving written notice to current broker?

2. In clause C, it says that market center will release all active listings to contractor. However, what about active contracts on behalf of buyer's agent?

Thanks a lot for assistance. 

[Christopher Phillips]

@Kalpesh Patel

Yes, in general, you have to wait the 90 days after giving notice. This is usually enough time to close active deals under contract.

Market centers usually aren't too worried about buyer agreements. They are more concerned about listings and properties under contract.

[Kalpesh Patel]

@Christopher Phillips thanks for your quick response. So does it mean I cannot transfer license until after that 90 day period?

[Christopher Phillips]

@Kalpesh Patel

Yes. That's correct. You would have to wait. This prevents agents from getting up and leaving and taking all their open deals with them. Most people with open deals usually wait for them to close before leaving.

You don't want to risk having your previous company holding your commissions hostage.

[Kalpesh Patel]

Got it. Makes sense. Just trying to understand the correct workflow. Appreciate your guidance.