The Agreement Between Broker And Agent is a fundamental document in the real estate industry, establishing the framework for professional relationships between brokers and their agents. This agreement is essential when a licensed real estate agent begins working under a broker's supervision, or when existing arrangements need formal documentation. It addresses crucial aspects such as commission splits, duties, compliance requirements, and operational procedures while ensuring adherence to both federal and state-specific regulations. The document is particularly important in the United States where real estate professionals must operate under a licensed broker's supervision to conduct business legally.
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1. Parties: Identifies the broker and agent, including their licensing details and contact information
2. Background: States the context of the agreement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Authority: Outlines what the agent is authorized to do on behalf of the broker
5. Compensation: Details commission splits, bonus structures, and payment terms
6. Independent Contractor Status: Clarifies the agent's status as an independent contractor rather than employee
7. Term and Termination: Specifies agreement duration and conditions for termination
8. Compliance Requirements: Lists regulatory and professional standards requirements
1. Non-Compete Clause: Restricts agent's ability to compete after termination - use in markets with high competition or when protecting specific territory
2. Technology Usage: Details use of broker's technology systems - include when broker provides specific technology platforms
3. Training Requirements: Specifies mandatory training programs - include when broker provides specific training programs
4. Marketing Guidelines: Details allowed marketing practices and brand usage - include when broker has specific branding requirements
1. Commission Schedule: Detailed breakdown of commission structures and splits
2. Office Policies: Broker's standard operating procedures and policies
3. Technology Agreement: Terms of use for broker-provided technology systems
4. Insurance Requirements: Detailed insurance coverage requirements
5. Required Forms: Standard forms used in real estate transactions
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