This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A real estate commission split agreement template with a brokerage is a formal document that outlines the terms and conditions regarding the division of commission between a real estate agent and their brokerage. This agreement serves as a legally binding contract to ensure transparency and fairness in the distribution of earnings. When creating a commission split agreement template, various factors must be considered, such as the specific commission structure, agent responsibilities, and any additional costs associated with the sale or lease of a property. Different types of commission split agreements may exist within the real estate industry to accommodate various business models and agent preferences. Here are a few common types: 1. Flat Fee Split: This type of agreement sets a fixed amount or percentage that the agent and broker agree to split regardless of the transaction amount. 2. Graduated Commission Split: In this model, the commission percentage varies based on the agent's annual sales volume or total number of transactions. As an agent's performance improves, their commission split increases. 3. Tiered Commission Split: Similar to the graduated split but with predetermined tiers, this agreement establishes commission percentages based on specific thresholds or benchmarks. 4. 100% Commission Split: As the name suggests, agents who opt for a 100% commission split agreement retain the entire commission, while paying the brokerage a set monthly fee or a per-transaction fee to cover operational expenses. 5. Team Split Agreement: For real estate teams within a brokerage, this agreement outlines how commissions will be divided among team members based on their roles and responsibilities. A comprehensive real estate commission split agreement template with brokerage should touch upon the following key elements: 1. Commission Structure: Clearly define the commission split terms, which may include splitting percentages, thresholds, or flat fees. 2. Compensation Methods: Specify whether commissions will be paid on a per-transaction basis or at closing, and outline any potential deductions or fees. 3. Agent Responsibilities: Outline the agent's duties and obligations, including marketing efforts, client acquisition, paperwork management, and adherence to brokerage policies. 4. Expense Sharing: Address any additional costs associated with marketing, advertising, technology tools, or administrative support, and specify how these expenses will be shared between the agent and brokerage. 5. Confidentiality and Non-Compete: Include provisions to protect confidential information, prohibit agents from competing with the brokerage within a certain period or geographical area, and define the consequences of breach. 6. Termination Clause: Establish conditions under which the agreement can be terminated, such as violation of the terms, poor performance, or mutual agreement. It is crucial to consult with legal professionals or use licensed templates specific to your jurisdiction while crafting a real estate commission split agreement with a brokerage. This ensures compliance with local laws and regulations, and helps protect the rights and interests of both agents and brokerages involved in the agreement.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
