I sell, primarily, REO. I have spent the past 4+ years building up my business and my client list to the point where I am making money, and so is my broker. However, he wants out of the foreclosure side and listings in general. So, I will be going out on my own in a few weeks. He has agreed verbally that my listings will go with me because he doesn't want involved in it anymore. So, when contacted by an asset manager with a house for me to market, I explained that I would be going out on my own and asked if that would be a problem. He asked if there would be E&O, and if there would be a time I would not be legally licensed. I told him it should be a day, at the most, without a license, so he said it wouldn't be a problem for him since the property won't be ready to list until after the change-over. Another client asked me to update my information on their site, for the purpose of getting a new listing assigned. I explained the same thing to them and added that, if they had to assign the property to another agent, I would understand, but that I hope they will continue to use me to market and sell their porpeties in the future.
I told my broker this and asked if he thought I should inform all my asset managers, and he got upset. He said that I had just violated one of the biggest laws in real estate, trying to solicit clients to leave my broker (to whom the current listings belong). I told him that they had initiated the contact and he said that didn't matter and, because I am still with him, what I did was very unethical. I kinda see his point, but since I am leaving because he has stated repeatedly he doesn't want to list foreclosures, he won't carry E&O, he doesn't want to be held liable for the banks' business mistakes, etc, I guess it didn't seem like a big deal to me to inform my clients. For their sake, isn't it better for them to know what is going on ahead of time? It isn't like I contacted them all and asked them to pull the listings and list with me, I just informed 2 of them that I would be going and hope they would still list with me.
i would like opinions on this, please, and ideas on how I should have handled the situation. Especially from agents/brokers in Missouri.

Oh yeah, I can only imagine how he will react when he finds out that the other 2 agents licensed under him have asked me if I would be willing to have them work for me... I told them that, if they want to talk about it, they need to contact me after my office is opened. Is that wrong, too?

You did not break any law. You might have violated one of the code of ethics. Big difference.

Since he had already given you the listings to take with you he relinquished his ownership of those listings so I think you did not do anything wrong.

Sounds like sour grapes. The worst he could do is file a complaint with the association of realtors which usually results in a slap on the wrist.

You haven't contacted any of your other AMs yet, if I read correctly? Just the one that called you w/an REO, and one co that wanted you to update info, and both of them, called you, correct? Then, you merely ASKED your broker if you should begin calling your co's to tell them of the change, right? That does not sound as though you are soliciting clients. Not to me.

You can tell your AMs of the change whenever your ready to. Just don't ask them to release your listings. It's up to the co's & AMs, and of course your broker, what happens with those listings. The AMs will either give your broker cancellation letters, ask you to get in writing a release from your broker, or email/call your broker to see if he wants to keep your listings. You can also offer some kind of referal fee, upon the sale of your current, active listings to your broker for their release if you think it'll make it easier to get them out of his office.

Just went through this myself. It was rough for a while, but ended up working out OK.

If I read your post correctly your present broker is not carrying E&O. That would disqualify his company from handling REO for most listing clients (even while you are still there).

When I left my former sponsor everything was all in place (I even had my own broker license as well as the associate broker license with him) to operate from day 1. I did not ask for any of the listings; I called the Asset Managers and told them I was leaving and introduced them to my successor for their account. My final comment to them was essentially: "By the way, please set up up another account for me, I'm still in the business!). Seemed to work out fine.

I talked to my manager and will most likely end up switches brokers. If I already have some REOs listed with my broker and she doesn't care if I take them with me, do you think that the asset management co's will have a problem with cancelling and re-listing with my new broker?

Thanks for your opinions. I do not think I did anything wrong, as I didn't initiate the contacts. Plus, I asked my broker's advice about letting them all know now, or after the switch. He seems to think that I am not allowed to even contact them afterwards and tell them where I am, but I know I can, and I can ask for future business. I just cannot ask them to pull their current listings from him and give them to me.
What would you do about companies that contact you with REO in pre-list? The listings won't come through until I am on my own, but I would have to be doing some of the work now, with him. I may just pay him a referral fee after they close, if I accept them all. I have been offered 8 new listings in the past week...

He did ask an agent in my office if I was talking to other agents, trying to get them to go to work for me, and the other agent told him no, bot that he was aware of. I have told many people, agents included, that I am going out on my own. A few have contacted me asking if I would take them on. I have told them all that, once they see in the MLS that I have my own office, they would have to contact me, then we could discuss it. I am trying hard to do things right, and think I am, but all it takes is someone else to think you aren't to cause trouble.
Any other takes on this?