When it comes to working in real estate as a licensed Realtor, it’s important to have a solid employment agreement in place. An employment agreement outlines the terms and conditions of the working arrangement between the Realtor and their employing broker. It’s a crucial document that provides clarity and protection for both parties.
As a Realtor, your employment agreement will dictate your relationship with your employing broker. Some of the key points to consider when negotiating your employment agreement include compensation, commission splits, and the responsibilities of both the Realtor and the broker.
Compensation and commission splits are arguably the most crucial elements of any Realtor employment agreement. As a Realtor, you deserve to be compensated fairly for your work. Your employment agreement should make it clear how much you will be paid for your services, as well as any potential commission splits you may be subject to.
In addition to compensation, your employment agreement should also define the specific responsibilities of both the Realtor and the broker. This may include things like marketing, prospecting, lead generation, transaction management, and more. It’s important to make sure that each party understands what is expected of them and that the responsibilities are clearly defined in the agreement.
Another important consideration when negotiating a Realtor employment agreement is any limitations or restrictions on your ability to work with other brokers or compete with your employing broker. Some employment agreements include non-compete clauses, which prohibit the Realtor from working with or for a competing broker for a certain period of time after leaving their current position. It’s important to carefully review these clauses and negotiate any terms that you feel are unfair or overly restrictive.
Overall, a well-crafted employment agreement is essential for any Realtor who wants to protect their interests and ensure a positive working relationship with their employing broker. By negotiating a fair compensation package, clearly defining responsibilities, and understanding any limitations or restrictions in the agreement, Realtors can set themselves up for success and build a strong foundation for their careers in real estate.
