Real Estate Employment Agreement Template for United States

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Key Requirements PROMPT example:

Real Estate Employment Agreement

"I need a Real Estate Employment Agreement for a residential brokerage in California, hiring an experienced agent with a 70-30 commission split and specific requirements for luxury property sales starting March 2025."

Document background
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.
Suggested Sections

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

Optional Sections

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)

Suggested Schedules

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

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

Clauses
Industries

Fair Labor Standards Act (FLSA): Federal law governing minimum wage, overtime regulations, and record-keeping requirements for employees

Internal Revenue Code: Federal tax regulations addressing employee classification, tax withholding, and reporting requirements

Federal Anti-Discrimination Laws: Including Title VII, ADA, and ADEA, protecting employees from various forms of workplace discrimination

Real Estate Settlement Procedures Act (RESPA): Federal law regulating real estate transactions, particularly regarding kickbacks and referral fees

State Real Estate Commission Requirements: State-specific regulations governing licensing, supervision, and commission structures for real estate professionals

State Labor Laws: State-specific requirements for minimum wage, working hours, breaks, and paid time off

State Real Estate Laws: State-specific regulations governing broker-agent relationships, commission regulations, and educational requirements

State Employment Laws: State-specific rules regarding non-compete agreements, commission payments, and termination requirements

NAR Guidelines: National Association of REALTORS�� professional standards and Code of Ethics requirements

MLS Rules: Multiple Listing Service regulations governing access, usage requirements, and data sharing protocols

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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