Real Estate Agent Independent Contractor Agreement

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The real estate agent independent contractor agreement is a contract between a real estate company and a salesperson (“agent”) that details the commission split and expenses between the parties. In most situations, the real estate company will provide a working environment, such as office space and equipment, in exchange for a portion of the agent’s commissions. This agreement may be used for residential or commercial real estate purposes.

Real Estate Listing Agreement – Between an agent and a buyer or seller of real estate.

Taking a Draw – When the real estate company agrees to pay the salesperson in advance of commissions.

(Video) What is a Real Estate Agent Independent Contractor Agreement?

How to Write

Download in Adobe PDF, Microsoft Word (.docx), or Open Document Text (.odt).

1 -Obtain A New Copy Of This Form Using This Page

This paperwork can be downloaded directly from this site. Locate the image previewing the form then select one of the buttons in the caption area. This paperwork can be saved as a PDF file or a word processing file (Word, ODT).

2 -Clearly Present The Agency Involved And The Real Estate Agent

The first article, named “I. Parties,” has a simple goal: to positively identify the document your holding, the concerned Salesperson or Agent, and the hiring Agency. Begin this identification process by declaring the official date of this agreement on the first and second blank lines. Do this by writing out the month name and calendar day when this agreement is entered onto the first blank line. Then after the digits “20,” report the two-digit year corresponding to the date you just entered.   Locate the quoted label in the parentheses “Salesperson.” Supply the full name of the Agent being hired or commissioned on the blank line that precedes this label. The legal name of the hiring Agency must also be documented in this area. Find the phrase “With A Principal Office Address Of.” Fill in the hiring Agency’s official name on the blank line just before this phrase then provide the hiring Agency’s office address by entering its street address, city, and state on the next three spaces. Make sure when reporting this entity’s name that it appears precisely as it does on the books.

3 -Describe The Agent’s Qualifications, Expectations, And Obligations

Our next task will be to identify the state where the Salesperson is a licensed real estate agent. Name this state on the first blank line in the section labeled “II. Salesperson.” We must supply a few definitions to this article before continuing. Thus, locate item “C.) Board Of Realtors.” You must mark one of the boxes to indicate if the Salesperson will be required to contact and join the local Association Of Realtors. If so, then mark the checkbox labeled “Required” and report the number of days after this document has been signed when the Salesperson must gain this membership. This will include that he or she pay whatever fees are required. If the Salesperson will not be obligated to become a “Paying Dues Member To The Local Association Of Realtors Board,” then mark the second checkbox (“Not Required”). In the item labeled “F.) Fees,” we will address the issue of who pays for the expenses required when selling real estate. By default, the Salesperson will pay for all such fees and expenses that he or she is legally allowed to however, you can list any exceptions to this obligation on the blank lines in this section. The next area requiring our attention in this article is “G.) Draw.” We must document what the Salesperson may expect regarding future commissions. If he or she will not be “Paid A Draw On Future Commissions” then mark the checkbox labeled “Shall Not.”  If he or she will be paid a Draw, then mark the second box labeled “Shall Be Paid.” The dollar amount paid from this Draw will need to be recorded on the first blank line in this choice and you must indicate the frequency of such payments by marking the checkbox labeled “Week” or “Month.” Finally, make sure to list the final calendar date such a payment can be made on the last blank line of this selection. In the seventh article (titled “VII. Termination”), we will solidify this agreement as a month-to-month arrangement however, we each party will reserve the right to cancel this arrangement at any time so long as the terminating party issues a notice of this intent to terminate a certain number of days before the termination. Enter the number of days’ notice the terminating party must give the remaining party on the blank line in this section. The eighth article, “VIII. Commissions” will seek a solid number to report on what the Salesperson will be paid so make sure your references are up-to-date. Locate the blank line just before the percent symbol then enter the commission percentage that will be used to calculate the Salesperson’s pay.

4 -Satisfy The Additional Information Requested By This Template

In many business relationships, the law may require that a written notice be sent from one party to another when certain scenarios occur. In “XI. Notice,” we will have an opportunity to report each of these entity’s contact information. Locate the blank lines labeled “Mailing Address,” “E-Mail,” and “Fax Number” under the heading “Salesperson” in this article. Use this area to report where the Salesperson receives his or her mail along with what e-mail address and fax. number should be used when the Salesperson must be contacted electronically on an immediate basis. The hiring Agency will have its own area for this task. Find the heading “Agency” in this article, then use the lines labeled “Mailing Address,” “E-Mail,” and “Fax Number” to record this entity’s official mailing and current electronic contact information.

This agreement will operate under and be held accountable to the court system of the state where these parties intend to operate in the manners defined above. Report the name of the state that rules over this agreement on the blank line in “XVI. Governing Law.” The area labeled “XVII. Additional Terms And Conditions” will allow for any lawful additions to this agreement, if there are certain aspects that have not been covered by this document. You may use the blank lines in this section to include such information or cite an attachment with this information that is properly labeled, signed by both parties, and dated by both parties.

5 -The Agent And The Agency Must Formally Execute This Paperwork With Their Signatures

This agreement will need to include proof that both the Salesperson and the Agency have read and intend to agree to the completed copy. Once an adequate review has been performed, both will need to provide a dated signature.

The Agency will need to produce an authorized Representative to sign this document on its behalf. This Signature Party must sign the blank line labeled “Agency Representative’s Signature” and produce the printed version of his or her name on the line labeled “Print Name.” The line labeled “Date” requires the current date reported immediately after the act of signing. The “Salesperson” area at the end of this document is where the Agent or Salesperson must sign and print his or her name as well as document the date, he or she signed this paperwork. Three blank lines: “Salesperson’s Signature,” “Print Name,” and “Date” have been provided so that he or she can supply these items in a clearly designated area.