Contract between broker and salesperson.

This agreement made _________[date] between _________ Real Estate Company, referred to as broker, and _________, referred to as salesman, for and in consideration of their mutual promises and agreements and for their mutual benefits, provides:

Broker is now, and has for many years, been engaged in business as a general real estate broker in _________[name of place], and is qualified to and does operate a general real estate business and is duly qualified to and does procure the listings of real estate for sale, lease or rental and prospective purchasers, lessees and renters of it and has and does enjoy the goodwill of, and a reputation for fair dealing with the public.

Broker maintains an office in _________, properly equipped with furnishings and other equipment necessary and incidental to the proper operation of the business, and staffed with employees, suitable to serving the public as a real estate broker.

Salesperson is now, and has been engaged in business as a real estate salesman, and has enjoyed and does enjoy a good reputation for fair and honest dealing with the public as such.

It is deemed to be to the mutual advantage of broker and salesman to form the association agreed to under the terms and conditions set out below, therefore:

1. Broker agrees to make available to salesperson all current listings of the office, except such as broker may find expedient to place exclusively in the temporary possession of some other salesperson, and agrees to assist salesperson in h work by advice, instruction, and full cooperation in every way possible.

2. Broker agrees that salesperson may share with other salesperson all the facilities of the office now operated by broker in connection with the subject matter of this contract, which office is now maintained at _________.

3. Salesperson agrees to work diligently and with h best efforts to sell, lease or rent any and all real estate listed with broker, to solicit additional listings and customers of broker, and otherwise promote the business of serving the public in real estate transactions to the end that each of the parties to this agreement may derive the greatest profit possible.

4. Salesperson agrees to conduct his business and regulate h habits, so as to maintain and to increase the goodwill and reputation of broker, and the parties agree to conform to and abide by all laws, rules and regulations, and codes of ethics that are binding on or applicable to real estate brokers and real estate salespersons.

5. The usual and customary commissions shall be charged for any service performed under this agreement, and broker shall advise salesperson of any special contract relating to any particular transaction which he undertakes to handle. When salesperson shall perform any service under this agreement, by which a commission is earned, the commission shall, when collected, be divided between broker and salesperson, in which division salesperson shall receive a proportionate share as set out in the rider attached headed "Commission Schedule" and broker shall receive the balance. In the event of special arrangements with any client of broker or salesperson on property listed with broker or controlled by salesperson, a special division of commission may apply, such rate of division to be agreed on by broker and salesperson. In the event that two or more salespersons participate in such a service, or claim to have done so, the amount of the commission over that accruing to broker shall be divided between the participating salespersons according to agreement between them or by arbitration. In no case shall broker be personally liable to salesperson for any commission nor shall salesperson be personally liable to broker for any commission, but when commissions shall have been collected from the party or parties for whom the service was performed, broker, in the event such commissions are paid to h, shall hold the same in trust for salesperson and hself to be divided according to the terms of this agreement, and in the event such commissions are paid to salesperson, salesperson shall pay over to broker broker's proportionate share of such commissions according to the terms of this agreement.

6. The division and distribution of the earned commissions as set out in paragraph 5 of this agreement, which may be paid to or collected by broker, shall take place as soon as practicable after collection of such commissions from the party or parties for whom the services may have been performed.

7. Broker shall not be liable to salesperson for any expenses incurred by h, or for any of h acts, nor shall salesperson be liable to broker for office help or expense, and salesperson shall have no authority to bind broker by any promise or representation, unless specifically authorized in a particular transaction; but expenses for attorney's fees, costs, revenue stamps, title abstracts and the like which must, by reason of some necessity, be paid from the commission, or are incurred in the collection of, or the attempt to collect, the commission, shall be paid by the parties in the same proportion as provided for in this agreement in the division of the commissions. Suits for commissions shall, agreeably to the law, be maintained only in the name of broker, and salesperson shall be construed to be a subagent only with respect to the clients and customers for whom services shall be performed, and shall otherwise be deemed to be an independent contractor and not a servant, employee or partner of broker.

8. This contract, and the association created by it, may be terminated by either party at any time on notice given to the other; but the rights of the parties to any commission which accrued prior to such notice, shall not be divested by the termination of this contract.

9. Salesperson shall not, after the termination of this contract, use to h own advantage, or the advantage of any other person or corporation, any information gained for or from the files or business of broker.

In witness, etc.




More Real Estate Forms


Browse Real Estate Forms & Mortgage Forms Alphabetically




Home Courses Real Estate Forms Income Properties For Sale Forums Real Estate Articles   

Copyright © 2001 - 2006, Buy Income Properties, Inc. All Rights Reserved. Privacy Policy in Observance.