Real Estate Commission Agreement Template For Top Brokerages

Every successful brokerage needs a solid independent contractor agreement that clearly defines the relationship between broker and agent. 

• ‍Independent Contractor Protection: Clear classification language that satisfies IRS requirements while protecting your brokerage from employment law issues. Agents understand their responsibilities for taxes, insurance, and business expenses.‍
• Compliance Standards: Built-in requirements for license maintenance, MLS membership, continuing education, and professional liability insurance that keep your brokerage protected and agents compliant.‍
• Business Requirements: Marketing approval processes, client service standards, and technology utilization requirements that maintain your brand while preserving contractor independence.‍
• Commission Plan Integration: Agreement references your separate commission plan document, allowing you to update compensation structures without renegotiating contracts.‍
• Termination Workflows: Clear procedures for voluntary termination, cause-based termination, and commission rights that protect both parties and reduce disputes.

Works With Our Commission Plan Template

This Master Agreement pairs with our Real Estate Commission Plan Template to create a complete agent relationship framework:

• Master Agreement: Legal relationship, compliance, business standards (this template)
• Commission Plan: Splits, tiers, bonuses, payment schedules. (Download here.)

Using both templates together gives you comprehensive coverage while keeping legal and compensation matters properly separated.

Customize for Your State and Business

All text marked in yellow should be removed before sharing this document with your peers. 

Required Customizations:

• Insert your state-specific legal requirements
• Add local MLS and board requirements
• Include any specialty compliance needs for your market
• Update service standards for your business model

⚠️ LEGAL REVIEW REQUIRED: This template must be reviewed by an attorney familiar with real estate law in your state before use. Independent contractor requirements, non-compete restrictions, and real estate regulations vary significantly by state.**

Timeline: 2-3 weeks including mandatory legal review
Result: Professional agreement that protects your brokerage and clearly defines agent relationships

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Real Results: How Breighton Land Automated Complex Commission Management

Breighton Land, a Philippine real estate firm, faced similar challenges with their complex commission structure. They had 49 distinct compensation plan variations and found manual Excel tracking "arduous and time-consuming."

After implementing Visdum's commission management platform:

• 6x faster commission management - from weeks to days
• 60 days saved annually in administrative time
• 99% payout accuracy - eliminating calculation errors
• 50x faster commission calculations - complex formulas automated

Their leadership gained "comprehensive visibility into top-performing brokers" and could "optimize compensation strategies" with data-driven insights.

Read all about it in our case study.

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