Before transferring a management agreement to another brokerage, what must the qualifying brokers of both brokerages execute?

The correct answer is that an assignment of contract must be executed by the qualifying brokers of both brokerages before transferring a management agreement. This is crucial because an assignment of contract legally transfers the rights and obligations of the original agreement to another party, ensuring all parties are in agreement regarding the transfer.

In real estate management, it's essential for the new brokerage to accept the responsibilities outlined in the original agreement, which is formally documented through this assignment. Without this step, there could be confusion regarding who is responsible for property management tasks and obligations, and it may expose all parties to potential legal issues.

Other options, such as a formal notice or a termination letter, do not fulfill the legal requirements needed to ensure that the transfer is binding and acknowledged by all involved. A property management agreement, while related, does not pertain to the specific action of transferring an existing management agreement to another brokerage but rather pertains to the initial establishment of management terms between the broker and property owner. Thus, executing an assignment of contract is the appropriate and necessary action in this scenario.