This Independent Contractor Agreement (“Agreement”), along with “Schedule B”, dated __________________ Is made between MC Homes Realty, Inc. (“Broker”) and _______________________________________ (“Licensee”) for a period of one (1) year and shall thereafter be automatically renewed for successive one (1) year terms, provided however that the Broker or Licensee has not in writing terminate this Agreement. In consideration of the covenants and representations contained in this Agreement, Broker and Licensee agree as follows:
2.1 Continuing Professional Education. Licensee shall maintain your continuing professional education hours at your cost and expense for a valid mortgage broker’s license and any other license necessary or required for each jurisdiction in which you practice Real Estate.
3.1. Broker and licensee are independent contracting parties and this agreement does not constitute an employment agreement by either party and shall not be construed as a partnership and Broker shall not be liable for any obligation, injury, disability or liability incurred by the licensee.
3.2. Licensee assumes and agrees to perform no other activities in association with Broker, except to solicit and obtain listings and sales of property for the parties mutual benefit, and to do so in accordance with the law and with the ethical and professional standards as required so that licensee commits no act of any type for which the Real Estate Commission of the state of Florida is authorized to suspend or to revoke a license.
3.3. Broker shall not limit licensee’s activities to geographical areas, or manner in which services are to be performed, about hours, schedule, inventory, vacation or similar activities, except to the extent required by all applicable laws, policies, and procedures.
3.4. All listings of property, and all agreements, acts or actions for the performance of licensed acts, which are taken or performed in connection with this Agreement, shall be taken and performed in the name of the Broker. Licensee shall conduct his business in a reputable manner, in accordance with Chapter 475, Florida Statutes and the rules and regulations set by the Florida Department of Professional Regulations and the Florida Real Estate Commission. He will not make false representations to any prospective purchaser, seller, landlord, tenant, or any other person. Shall show due diligence to verify all facts and information which he furnished to any such person. Licensee agrees and does hereby contribute all right and title to such listings to Broker for the benefit and use of Broker, licensee and other licensees of Broker. Licensee agrees to provide Broker a complete copy package of each closed transaction with all necessary documentation. Upon termination of Licensee, as long as Licensee is in good standing with Broker and has no open escrows or closings, Licensee may take their listings with them.
3.5. Licensee shall have no authority to bind Broker by any promises or representations and Broker shall not be liable for any obligation or liability incurred by a licensee unless Broker specifically authorized it in writing. This includes actively participating in a public hearing which involves the business of the Broker or its’ clients.
3.6. The licensee is considered to be an Independent Contractor for tax purposes and will be responsible for all tax issues at the end of each calendar year. Broker does not withhold taxes or Social Security from Licensee’s compensation. Payment of taxes and Social Security contributions are Licensee’s responsibility. The licensee is considered an independent contractor and the company does not provide unemployment insurance.
4.1 Branch License. If any meeting is conducted in a retail or commercial location where the Licensee has any affiliation, a Branch License will be required.
4.2 Occupational License Fee. The Licensee real estate associates (sales associates) no longer have to apply for a business tax, due to the 2012 Florida Statute 205.067 which exempts them from paying the business tax.
4.3 Real Estate Associations. Within ten days of this agreement, Licensee agrees to become, and remain, a dues-paying member of the Board of REALTORS as well as the Multiple Listing Service and agrees to abide by all rules and by-laws pertaining to membership including, but not limited to, listings, lockboxes, etc. Licensee shall also be bound by the National Association of Realtor’s Code of Ethics. Licensee shall comply fully with the Florida Realtors “Agent Agreement” www.floridarealtors.org. Licensee agrees to comply with section 15 of the Subscription Agreement as if Licensee was a Subscriber.
4.4 Fines. Licensee is solely responsible for any fines or a levy assessed by any MLS, Board, regulatory the agency, or other professional organization, as a result of Licensee’s noncompliance and expressly authorizes Broker to add such fines to Licensee’s expenses which may be deducted from commissions if not paid within five business days of said fines.
4.5 Service Fees. Any and all fees charged by any association of Realtors, MLS, or any other vendor or supplier through the Broker for or on behalf of Licensee, or his/her assistants shall be the Licensee’s sole responsibility and shall be paid by Licensee monthly or as such charges are received by Broker.
6.1. Compensation shall be charged to the parties who enter into a listing or other agreements for services requiring a real estate license. Licensee may use its own discretion regarding what commission fee to charge its clients for these services. In no event shall Broker be personally liable to licensee for licensee’s share of commissions not collected, nor shall licensee be entitled to any advance or payment from Broker upon future commissions, Licensee’s only remuneration being a licensee’s share of the commission paid by the party or parties for whom the service was performed. Nor shall licensee be personally liable to Broker for any commission not collected. Licensee shall be responsible for any previously earned sales commission reimbursement, rebate, or refund that may be ordered by a Court of Law or by a professional Arbitration or Mediation Panel, for any reason.
6.2. COMMISSION SCHEDULE / PROGRAMS: Dual agency (Any deal where the licensee has two sides of a transaction) is counted as two separate transactions with MC Homes Realty, Inc. collecting fees for two transactions based on the appropriate commission plan the licensee has chosen. You can switch to a different plan every 12 months; the new plan will apply to the new transactions only.
New Agents (limited or no experience): Are subject to 75%/25% split and the must close five files before they qualify for our flat fee program. An agent can change to a different program after the 5th transaction.
The transaction with Referral Fees: In the event, MC Homes Realty, Inc. provides the lead or client is obtained from our floor office, the commissions are subject to 65%/35% splits [65% for the agent and 35% for MC Homes Realty, Inc.]. These splits apply to all transactions and businesses the lead may produce. (% received by MC Homes Realty, Inc. is to keep investing in advertising and marketing).
$10 Leads: if you participate in this program, $10 is the only fee to pay to cover the cost of generating the lead, no extra charges for the lead or splits.
A licensee may change commission plans once during the calendar year. Any commission plan a Licensee enters a closing with must close that transaction with the same commission plan as entered. At no time is a licensee with MC Homes Realty, Inc. to request, receive, ask or authorize any closing company to release a commission check on a transaction they may be involved in. All transaction files must be completed in the Online Back Office System and have been certified by the manager or broker before a licensee can be paid directly from closing. Signing commission instructions by a licensee or unauthorized release of a commission check to a licensee are grounds for immediate termination and legal actions.
6.3 COMMISSIONS: A Licensee of MC Homes Realty, Inc. can list a rental property on the MLS, market it, and show it to potential tenants. A Licensee of MC Homes Realty, Inc. must never accept a rental/lease payment or deposit. Any payments must go directly to the owner, property management or closing company. Also, a Licensee of MC Homes Realty, Inc. must never accept any type of compensation in regards to a rental or lease transaction. The compensation must be paid to the Licensee through MC Homes Realty, Inc. unless we have made prior arrangements. The transaction must be reported to MC Homes Realty, Inc. within 48 hours. Any commissions to be paid to a Licensee of MC Homes Realty, Inc. will be paid once all the appropriate documents are uploaded into the transaction coordinator for that transaction and certified by the broker or manager or other arrangements are made. Referral fees shall only be paid to the Broker of Florida state licensed salesperson/broker in accordance with a written agreement between salespersons/broker, approved by MC Homes Realty, Inc. broker prior to the close of any deals. All referral fees are to be paid out of the Licensee’s gross share of the referral fee. A social security number of the referring broker or EIN number is required, along with a signature of the referring broker, in order to process the referral fee.
COMMISSION PLANS:
RESIDENTIAL |
COMMERCIAL |
|
*Listing / Selling |
$0 |
5% (Min. $350) |
Referrals |
$99 |
5% (Min. $350) |
Rentals/Leases |
$99 |
5% (Min. $350) |
Property Management # |
Varies |
Varies |
* Broker Fee of $350 is pay by the client and applies only to Listing/Selling Transactions (If is not collected from the client, will be cover by the Licensee).
* Listings a $350 MLS Fee must be charged to the buyer’s agent and be included in the CD. This MLS Fee will be divided equally between the Licensee and The Broker.
# Property Managers: Larger splits can be arranged accordingly with the roll the Licensee is willing to assume.
LIMITED SERVICE LISTINGS: If an upfront fee is charged, The broker takes 10% with a max of $350. If/when the property closes, E&O, 1/2 of MLS fee, broker fee, and Transaction Fee (based on selected plan) are due to Broker.
PAID AT CLOSING: We only send Disbursement Authorization to the title company for the Licensee to be paid at closing ONLY if a complete file was submitted to compliance and all documents are provided, completed, properly initial, and signed by all parties 72 hours before closing. Otherwise, we will write a check to the Licensee 72 hours after we received the check and all documents passed compliance.
6.4. COMMISSION PAYMENT DELAYS and HUD HOMES: If a particular escrow/closing company (and there may be a couple) doesn’t honor our commission disbursement agreement (CDA), (HUD WILL NOT), then you could potentially experience up to a 2-week delay in receiving your check, while we wait to receive the check from the escrow/closing company or HUD and for the funds to clear our bank. In the event this happens, The broker will write a check to Licensee once the funds clear our bank, and send via Standard US mail. Furthermore, regarding HUD home commissions, we reserve the right to charge an admin fee of up to $150 for each closed HUD transaction, in addition to any other fees.
8.1 E&O + MLS Penalties. In the event, the Licensee has an open balance created by an E&O deductible, or MLS penalty this must be paid by Licensee before leaving the company. Otherwise, the Licensee will keep working with Broker until this is paid.
10.1 The licensee shall maintain automobile insurance coverage for liability and property damage in the amounts of $100,000 / $300,000. Broker shall be indemnified and held harmless against any claims or demands resulting from any automobile accident of licensee or as a result of licensee’s default in this paragraph.
10.2 Errors and Omissions (E&O). Broker shall exercise its best efforts to maintain an active E&O policy which carrier shall be chosen at the broker’s sole discretion. The licensee is responsible for the payment of any and all deductible amounts for each E&O claim against the Licensee and Broker. Licensee understands it is responsible for payment of the deductible amount (currently $5,000.00 may vary at any time without notice) upon request, for each error and Omissions claim. In the event of a claim, lawsuit, or arbitration demand that is not wholly covered by said insurance Broker may withhold an amount sufficient to satisfy any amounts not covered from Licensee commissions until the matter is settled. Broker may apply such sums as are necessary to settle or satisfy such claims or awards at Broker’s sole discretion. The licensee agrees to pay and has withheld from Licensee’s commission payment, an E&O insurance premium according to the plan the Licensee selected. The E&O insurance premium amount is subject to change with 30 days’ notice. The licensee shall immediately notify Broker of any circumstances likely to give rise to any kind of claim or complaint against the Licensee and Broker.
If the Licensee participates as a seller or a buyer in the transaction, the Licensee is subject to pay $100 for the E&O.
All commercial transactions are subject to $150 for the E&O.
All residential transactions follow their own E&O fees according to their commission plan.
Licensee shall not ever receive ANY funds from clients nor receive ANY cash payments from clients. All trust funds shall be handled in compliance with the Business and Professions Code, and other applicable laws.
Broker reserves the right to modify the terms of this agreement with 30 days’ notice. In the event of any modifications, Broker will notify Licensee via email.
26.1. MC Homes Realty, Inc. has an Office Policy and Procedure Manual which contains important information about the Company’s general office policies. The licensee is expected to read, understand, and adhere to MC Homes Realty, Inc. office policies. The Company may, in its sole and absolute discretion, change any policies, benefits, or practices in the manual, with or without prior notice.
26.2. The Office Policy and Procedure Manual contains the Broker’s Policy against Harassment. Licensee agrees to comply with all aspects of the policy against sexual harassment and other forms of harassment.
26.3. Licensee’s signature below certifies that he/she has read the MC Homes Realty, Inc. Office Policy and Procedure Manual and agrees to abide by its provisions during his/her association with MC Homes Realty, Inc. It supersedes all prior agreements, understandings, and representations concerning licensee’s association with this Company, MC Homes Realty, Inc.. The Licensee acknowledges receipt of a copy of this agreement for their records.$0