The Real Estate Broker Independent Contractor Agreement is essential for establishing clear parameters in the broker-agent relationship within the United States real estate industry. This document is used when a licensed real estate brokerage firm wishes to engage licensed real estate agents as independent contractors rather than employees, which is the predominant business model in the U.S. real estate industry. The agreement ensures compliance with IRS regulations regarding independent contractor status while addressing state-specific real estate commission requirements, compensation structures, and professional obligations. It's particularly important for maintaining proper classification of workers and protecting both parties' interests in the business relationship.
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1. Parties: Identifies the broker/brokerage firm and the independent contractor
2. Background: States the purpose of the agreement and basic context
3. Definitions: Key terms used throughout the agreement
4. Independent Contractor Status: Clearly establishes the relationship as independent contractor, not employee
5. Duties and Responsibilities: Outlines the contractor's obligations and scope of services
6. Compensation: Details commission structure and payment terms
7. Term and Termination: Duration of agreement and conditions for termination
8. Compliance with Laws: Requirements to comply with real estate laws and regulations
9. Insurance and Liability: Insurance requirements and liability allocation
1. Non-Compete: Restrictions on competing activities during and after the agreement term
2. Training Requirements: Specific training obligations and continuing education requirements
3. Marketing and Advertising: Rules and guidelines for marketing activities and brand usage
4. Technology Use: Terms and conditions for using brokerage's technology systems and platforms
1. Commission Schedule: Detailed breakdown of commission rates, splits, and payment terms
2. Office Policies Manual: Reference to company policies, procedures, and operational guidelines
3. Required Forms and Documents: List of standard forms and documents to be used in real estate transactions
4. Technology Agreement: Specific terms of use for brokerage's technology platforms and systems
5. Insurance Requirements: Detailed specifications for required insurance coverage and limits
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