INDEPENDENT CONTRACTOR AGREEMENT
(Between Broker and Licensee)
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:
- BROKER: Broker is duly licensed in the State of Florida to sell or otherwise deal in real estate, under the Corporation name of “MC Homes Realty, Inc..” Broker(s) shall keep license current during the term of this Agreement.
- LICENSEE: Licensee represents that he or she is duly licensed by the State of Florida as a real estate broker or salesperson to sell or otherwise deal in real estate, and has not use any other names within the past five years, except through the legal name change. Licensee shall keep his/her real estate license current and active during the terms of this Agreement, including satisfying all applicable continuing education and provisional license requirements for the state in which they are licensed.
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.
- BROKER AND LICENSEE RELATIONSHIP:
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.
- BUSINESS EXPENSES: Broker shall not be liable to licensee for any expenses incurred by the licensee or for any of its acts. The licensee agrees to provide and pay for all necessary professional licenses and dues. Licensee understands and agrees that Broker shall not pay for any office(s), place of business, supplies, advertisements, marketing materials, and that licensee is responsible for conducting business at its own costs if any. Broker shall not be liable to reimburse licensee for any expenses unless specifically agreed to in writing. The licensee shall furnish his own transportation and pay all transportation and travel expenses. The licensee must carry automobile insurance as required by law and shall furnish satisfactory evidence of such insurance to Broker upon request.
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.
- LICENSED ACTIVITY: Licensee shall be familiar with, and comply with all applicable laws, policies, and procedures, including, but not limited to anti-discrimination laws and restrictions against the giving or accepting a fee, or other things of value, for the referral of business to title companies, escrow companies, home inspection companies, pest control companies and other settlement service providers pursuant to the state of Florida and the Real Estate Settlement Procedures Acts (RESPA). Licensee also uses only real estate forms that are approved by the Broker.
- COMPENSATION / COMMISSION:
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.
APPLIES TO ALL 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.
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.
Agent Fee: $99 Monthly, $99 per transaction side, $35 E&O per file, MLS Fees 50/50
Client Fee: $350 per file
Listing / Selling
(based on plan selected)
10% (Min. $350)
10% (Min. $99)
10% (Min. $350)
10% (Min. $99)
10% (Min. $350)
Property Management #
20% (Min. $99)
20% (Min. $350)
* If no broker fee is collected from the client, will be paid by the Licensee.
# Larger splits can be arranged accordingly with the roll the Licensee is willing to assume.
What is Commercial real estate? If the real estate makes money, is rented out, used for investments, or falls into a number of other categories other than being a private residence, it is considered commercial real estate. It covers retail properties, office buildings, shopping centers, hotels, warehouses, manufacturing facilities, apartment complexes, and vacant land that has the potential for development. Even a single-family home can be labeled commercial real estate if you buy the home for the purpose of renting it out and generating an income, or if you own the home and convert it into an income-generating property.
LIMITED SERVICE LISTINGS: If an upfront fee is charged, The broker takes 10% with a max of $250. 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.
- MONTHLY FEES: Licensee must provide a credit card for the recurring monthly fee. The fees are not refundable. A licensee that misses two monthly payments must pay six months in advance or will be subject to termination, any balance will be deducted from any commission checks.
- COMPENSATION UPON HIRE OR AFTER TERMINATION OR CASE OF DEATH: Upon termination of this agreement, payments under this section shall cease; provided, however, that so long as Licensee is not in default of any provision of this Agreement, the Licensee shall be entitled to payments for periods or partial periods that occurred prior to the date of termination and for which licensee has not yet been paid. Licensee authorizes Broker to deduct from any commissions due at termination of this Agreement or in case of death all financial obligations owed to Broker that are imposed by terms of this Agreement. Furthermore, in the event licensee leaves or in case of death and has transactions pending that require further work normally rendered by the licensee, the broker shall be compensated for completing the details of pending transactions and such compensation shall be deducted from the terminated share of the commission, a split of 50% to the broker applies. Any transaction(s) already in closing and brought over to MC Homes Realty, Inc.. upon hire, or released from MC Homes Realty, Inc. upon termination are subject to a 10% charge (never less than $300) of gross commissions earned by the licensee who is hiring on or terminating.
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.
- DOCUMENTS AND FILES: All files and documents pertaining to listings, leads and transactions are the property of Broker and shall be delivered to Broker via our online Back Office System. All documents are due to be uploaded to our system no later than 24 hours after the client’s signatures.
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.
- EARNEST MONEY DEPOSITS: Licensee acknowledges and understands that Broker does not maintain a trust fund account and that any earnest money deposits shall never ever be touched by the licensee. The licensee should notify closing immediately to arrange for any earnest money deposits needing to be picked up or delivered and submitted on behalf of the client and then it should be reported to the broker.
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.
- FICTITIOUS BUSINESS NAMES AND LOGOS: While affiliated with Broker, the licensee shall use Broker’s name “MC Homes Realty, Inc.” and distinctive logo on signage, stationery, websites, and any other marketing materials unless otherwise agreed to. The licensee agrees that Broker retains exclusive rights to the “MC Homes Realty, Inc. ” trademark logos and graphics. The licensee agrees to discontinue the use of any “MC Homes Realty, Inc. ” trademark logo and graphics immediately upon the termination of this Agreement.
- ADVERTISING AND SOLICITATIONS: All advertising done by the licensee must receive prior written approval of the Broker. NO TELEPHONE SOLICITATION IS ALLOWED by the licensee to people who have registered their telephone numbers on a national do-not-call registry. The broker is not liable or responsible for any advertising done by the licensee on its behalf, and Licensee agrees to hold Broker harmless of any costs, damages, legal or otherwise, specifically arising as a result of Licensee’s failure to comply with this. The licensee shall not engage in any advertising or telemarketing or develop an Internet presence unless such action is approved in writing by Broker.
- LIABILITY AND HOLD HARMLESS: In addition to all other legal or equitable remedies of Broker, licensee shall indemnify and hold Broker and its owner(s), managers, affiliates, shareholders, directors, officers, agents, employees, successors, and assigns harmless from and against and shall reimburse the same with respect to any and all losses, damages, demands, claims, liabilities, costs, and expenses, including reasonable attorney fees (collective “Losses”), incurred by reason of or arising out of or in connection with any fraud or misrepresentation of licensee, including, but not limited to, licensee’s misrepresentation of its relationship with Broker to any third party or any action by licensee taken or omitted pursuant to this Agreement. Any such claims or costs payable pursuant to this Agreement are due to pay in full by the licensee, who hereby agrees to indemnify and hold harmless Broker or manager for all such sums.
- INJURIES TO LICENSEE: Licensee acknowledges and agrees that Broker does not provide worker’s compensation insurance for the licensee as the licensee is an independent contractor. It is licensee’s obligation to obtain appropriate insurance coverage for the benefit of the licensee and its employees, if any, for any injuries. The licensee and its employees waive any rights to recovery from the Broker for any injuries that licensee and/or its employees may sustain while performing services under this Agreement.
- LICENSEE’S EMPLOYEES: Licensee’s employees, if any, who perform services for Broker under this Agreement shall also be bound by the provision of this Agreement. Licensee’s responsibilities include advising its employees of the terms of this Agreement and supervising their activities to ensure their compliance with all of its terms. At the request of the Broker, the licensee shall provide evidence that such persons are licensee’s employees and are bound by the provisions of this Agreement.
- WORKING PLACE: Broker does provide office space for the licensee to work in. The office workspace is to be used on a first-come basis. The licensee may work from home, personal office, vehicle or any other places of licensee’s choice. However, the licensee is responsible for storing all transaction documents in our Online Back Office System between 24 hours after documents are signed by parties. The licensee must keep originals in a safe place with a lock and be able to present them at the Broker’s request within 24 hours. The licensee must be accessible by phone, fax, e-mail, and postal mail, and respond to voicemails within a maximum time frame of 24 hours.
- ACTIVITY REPORTING: The licensee is required to report all his/her real estate activities to the Broker within 48 hours of their occurrence. Real estate activities include listing agreements, newly opened escrows (accepted purchase agreements), earnest money deposits escrow or closing has handled, canceled and expired agreements, renewed agreements, referral fee agreements and any other business contract or arrangement involving a licensee and his/her client.
- INTERNAL MEDIATION: Disputes involving two or more licensees working with MC Homes Realty, Inc.; Licensee authorizes the Designated Broker for MC Homes Realty, Inc., sole and absolute discretion in resolving the said dispute and abides by the Broker decision. Licensee also agrees to hold harmless and indemnify MC Homes Realty, Inc. its Broker, and employees against any claim, action or lawsuit of any kind, and from any loss, judgment, or expense, including attorneys’ fees, arising from or relating in any way to the resolution of a dispute.
- GOOD STANDING: The Licensee certifies that he/she has notified Broker in writing of all prior and pending disciplinary actions, sanctions, lawsuits, and other claims made against the Licensee and/or Licensee’s Broker regarding licensee’s actions.
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.
- ENTIRE AGREEMENT: This Agreement contains the entire agreement of the parties and there are no promises or conditions in any other agreement whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties. This Agreement may be modified or amended if the amendment is made in writing and is signed by both parties. If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable.
- APPLICABLE LAW: This Agreement is entered into the state in which the licensee is licensed, and shall be governed by the laws of the Florida State. Any lawsuit filed which arises out of or relates to this agreement must be filed in the county of Pinellas, Florida State in which Broker is licensed.
- TERMINATION OF AGREEMENT: This Agreement may be terminated by either party, any time, with or without cause. Even after termination, this Agreement shall govern all disputes and claims between Broker and licensee connected with their relationship under this Agreement, including obligations and liabilities arising from existing and completed listings, transactions, and services.
- DISPUTE RESOLUTION:
- Mediation: Mediation is recommended as a method of resolving disputes arising out of this Agreement between Broker and licensee.
- Arbitration: All disputes or claims between the licensee and another licensee (s) associated with Broker or manager, or between licensee and Broker or manager, arising from or connected in any way with this Agreement, which cannot be adjusted between the parties involved shall be submitted to the Association of REALTORS® of which all such disputing parties are members for arbitration pursuant to the provisions of its Bylaws, as may be amended from time to time, which are incorporated as a part of this Agreement by reference. If the Bylaws of the Association does not cover arbitration of the dispute, or if the Association declines jurisdiction over the dispute, then the arbitration shall be pursuant to the rules of law in the state of Florida. The Federal Arbitration Act, Title 9, U.S. Code, Section 1, et seq., shall govern this Agreement. The broker will be compensated 20% of any arbitration award or court judgment, to compensate the company for the time, company legal expenses and costs accrued by such arbitration or court action.
- COLLECTION OF FEES:
The broker will not be required to prosecute or sue any party in order to collect any fee for services performed by the Licensee. However, if Broker incurs attorney’s fees and costs in the collection of or attempts to collect a fee, such amounts will be deducted from the Licensee’s commission in the same proportion as provided for herein in the division of the fee.
- LICENSEE AGREES AND UNDERSTANDS THAT:
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.