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Real Estate Agent Commission Split Agreement for the United States

Real Estate Agent Commission Split Agreement Template for United States

A Real Estate Agent Commission Split Agreement is a legally binding document used in the United States that establishes the terms and conditions for how commissions earned from real estate transactions will be divided between a real estate broker and an agent. This agreement outlines the percentage split of commissions, payment terms, responsibilities of both parties, and the independent contractor relationship. It must comply with both federal regulations and state-specific real estate laws.

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Real Estate Agent Commission Split Agreement

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What is a Real Estate Agent Commission Split Agreement?

The Real Estate Agent Commission Split Agreement is essential for establishing clear financial terms between brokers and agents in the United States real estate industry. This document is typically used when an agent joins a brokerage or when existing commission arrangements are modified. It addresses crucial aspects such as commission percentages, payment schedules, and performance requirements while ensuring compliance with state real estate regulations and federal laws. The agreement protects both parties by clearly defining their financial relationship and respective obligations.

What sections should be included in a Real Estate Agent Commission Split Agreement?

1. Parties: Identifies the broker and agent entering into the agreement

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Commission Structure: Details of the split arrangement and calculation method

5. Payment Terms: Timing and method of commission payments

6. Independent Contractor Status: Clarification of agent's status as independent contractor

7. Term and Termination: Duration of agreement and termination provisions

What sections are optional to include in a Real Estate Agent Commission Split Agreement?

1. Technology Fee Structure: Details of any technology fees or splits when brokerage provides technology platforms

2. Marketing Cost Sharing: Agreement on sharing marketing expenses between broker and agent

3. Training Requirements: Mandatory training or certification requirements for the agent

What schedules should be included in a Real Estate Agent Commission Split Agreement?

1. Commission Rate Schedule: Detailed breakdown of commission splits for different transaction types

2. Office Policy Manual: Reference to brokerage policies and procedures

3. Fee Schedule: List of all applicable fees and charges

4. Required State Disclosures: State-mandated forms and disclosures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Broker Agreement

Cost

Free to use
Clauses































Industries

RESPA: Real Estate Settlement Procedures Act - Federal law governing real estate transactions and prohibiting kickbacks and referral fees

Fair Housing Act: Federal law prohibiting discrimination in real estate transactions based on protected characteristics

Anti-Trust Laws: Federal regulations ensuring fair competition and preventing monopolistic practices in real estate markets

IRS Regulations: Federal tax regulations governing independent contractor status and commission income reporting

State Real Estate Commission Regulations: State-specific rules governing real estate practice, licensing, and commission arrangements

State Licensing Laws: State-specific requirements for maintaining real estate licenses and operating as a real estate professional

State Labor Laws: State-specific regulations governing employment relationships and independent contractor classifications

State Brokerage Requirements: State-specific rules governing the operation of real estate brokerages and commission arrangements

NAR Guidelines: National Association of REALTORS喔⑧笌 professional standards and ethical guidelines for commission arrangements

State REALTOR喔⑧笌 Requirements: State-specific REALTOR喔⑧笌 association rules and requirements for commission splits and business practices

Local REALTOR喔⑧笌 Rules: Local board requirements and guidelines affecting commission arrangements and business practices

Independent Contractor Classifications: Legal requirements for properly classifying and maintaining independent contractor relationships

Disclosure Requirements: Mandatory disclosures related to commission arrangements and business relationships

Anti-Kickback Provisions: Legal restrictions on referral fees and compensation arrangements between real estate professionals

Record-Keeping Requirements: Mandatory documentation and retention requirements for commission agreements and related transactions

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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