The Real Estate Employment Agreement serves as the foundational document governing the relationship between real estate brokerages and their agents in the United States. This agreement is essential for establishing clear expectations, responsibilities, and compensation structures while ensuring compliance with state-specific real estate laws and federal employment regulations. It typically includes provisions for commission splits, marketing support, technology usage, and professional development requirements. The document is particularly crucial given the unique nature of real estate employment, where agents often operate with significant autonomy while remaining under the supervision of a licensed broker.
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1. Parties: Identification of the real estate brokerage/employer and the agent/employee
2. Background: Context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Scope of Employment: Duties, responsibilities, and expectations of the agent
5. Compensation Structure: Commission rates, splits, and any base salary arrangements
6. Term and Termination: Duration of agreement and conditions for termination
7. Compliance Requirements: Licensing, continuing education, and regulatory compliance obligations
1. Non-Compete Clause: Restrictions on post-employment competition (include only in states where enforceable)
2. Benefits Package: Health insurance, retirement plans, and other benefits (include when offering additional benefits beyond commission)
3. Technology Usage: Rules regarding use of brokerage technology and systems (include when providing specific technology platforms)
4. Team Arrangements: Terms for working within or leading a team (include when agent will be part of team structure)
1. Commission Schedule: Detailed breakdown of commission structures and splits
2. Office Policies Manual: Reference to or incorporation of brokerage policies and procedures
3. Benefits Summary: Detailed description of any benefits provided
4. Required State Disclosures: State-specific required forms and disclosures
5. Technology Agreement: Terms of use for brokerage technology systems
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