What determines if Broker B owes any money to the licensee who leaves before the transaction closes?

The independent contractor agreement in place is the key factor determining whether Broker B owes any money to the licensee who leaves before the transaction closes. This agreement outlines the terms of the relationship between the broker and the licensee, including compensation structures, responsibilities, and conditions under which payment may be owed.

If the agreement specifies conditions regarding commissions or fees for transactions that were initiated but not completed due to a licensee's departure, it will dictate whether or not Broker B is obligated to compensate the licensee for that work. Contracts often include clauses that explain commission splits, payment for services rendered, and scenarios that lead to forfeiture of commission if a licensee exits prior to closing. Hence, the precise wording and terms of this agreement provide clarity on financial obligations in such situations.

Other factors, while potentially influencing the situation (such as sales performance or market value), do not have the same binding effect as the terms laid out in the independent contractor agreement, which serves as the primary framework for the financial relationship between the broker and the licensee.