Real Estate Agent Contract With Broker Template for United States

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Key Requirements PROMPT example:

Real Estate Agent Contract With Broker

"I need a Real Estate Agent Contract with Broker for my expanding residential brokerage firm in California, which should include specific provisions for a 70-30 commission split and mandatory participation in our company's new digital marketing program starting January 2025."

Document background

The Real Estate Agent Contract with Broker is essential for formalizing the business relationship between real estate professionals. This document is used when a licensed real estate agent joins a brokerage firm, as required by U.S. law since agents must work under a broker's supervision. The contract addresses crucial elements including commission splits, duties, compliance requirements, and termination conditions, while adhering to both federal regulations and state-specific real estate laws. It serves as the foundational agreement protecting both parties' interests and ensuring regulatory compliance in real estate operations.

Suggested Sections

1. Parties: Identifies the broker and agent, including license numbers and contact information

2. Background: Establishes context of the relationship and confirms licensing status

3. Definitions: Key terms used throughout the agreement

4. Scope of Authority: Details agent's rights and limitations in representing broker

5. Commission Structure: Compensation terms and split arrangements

6. Term and Termination: Duration of agreement and termination conditions

7. Duties and Responsibilities: Obligations of both parties

8. Compliance Requirements: Legal and regulatory obligations

Optional Sections

1. Non-Compete Clause: Restrictions on post-termination activities - used in markets with high agent turnover

2. Marketing Support: Broker's commitment to providing marketing resources - used when broker provides significant marketing support

3. Training Provisions: Details of training programs and requirements - used for new agents or when specific training is provided

4. Team Arrangements: Rules for forming and operating teams - used when agent teams are permitted

Suggested Schedules

1. Commission Schedule: Detailed breakdown of commission structures and splits

2. Office Policy Manual: Reference to broker's operational policies and procedures

3. Technology Agreement: Terms for use of broker-provided technology systems

4. Insurance Requirements: Details of required insurance coverage

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Fair Housing Act: Federal law that prohibits discrimination in real estate transactions based on race, color, religion, sex, national origin, familial status, or disability

RESPA: Real Estate Settlement Procedures Act - Federal law that regulates real estate transactions and settlement services, including kickbacks and referral fees

ADA: Americans with Disabilities Act - Federal law ensuring accessibility and preventing discrimination against individuals with disabilities in real estate transactions

Anti-Trust Laws: Federal laws governing competition and business practices in real estate, preventing price fixing and other anti-competitive behaviors

State Real Estate Commission Regulations: State-specific regulatory framework governing real estate practice, including licensing, conduct, and compliance requirements

State Licensing Requirements: State-mandated qualifications, examinations, and ongoing requirements for maintaining real estate license

Commission Structure Laws: State-specific regulations governing how real estate commissions can be structured, shared, and paid

Agency Relationship Laws: State laws defining and regulating the relationships between brokers, agents, and their clients

Disclosure Requirements: State-mandated disclosures regarding property condition, agency relationships, and other material facts

Contract Termination Laws: State regulations governing the conditions and procedures for terminating real estate agency contracts

Internal Revenue Code: Federal tax laws governing independent contractor status and tax obligations for real estate professionals

Fair Labor Standards Act: Federal law governing employment standards, which may apply in certain broker-agent relationships

Workers Compensation Requirements: State-specific insurance requirements for covering workplace injuries and related claims

NAR Code of Ethics: Professional standards and ethical requirements established by the National Association of REALTORSยฎ

MLS Regulations: Rules and regulations governing participation and use of Multiple Listing Service systems

Continuing Education Requirements: State-mandated ongoing education requirements for maintaining real estate license

E&O Insurance Requirements: Errors and Omissions insurance requirements protecting against professional liability claims

Data Privacy Regulations: Laws and regulations governing the handling and protection of client and transaction data

Record Keeping Requirements: State and federal requirements for maintaining transaction records and related documentation

Dispute Resolution Procedures: Legal framework and requirements for handling commission disputes and other conflicts between parties

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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