The agreement will set out the distinctive characteristics of an independent contractor that we have already passed. In addition, you can look forward to hiring someone to help you as an independent contractor. This can be an assistant to manage your papers, an accountant who helps with budgeting, or the photographer mentioned above. This will help you give your offers that extra competitive advantage. Money is important, and it is with the independent contractor contract, where it is established how a seller is paid by his broker. As mentioned above, to be an independent contractor, the seller must be paid first by a commission and never according to the number of hours worked. The way the commission is negotiated between sellers and sellers is completely negotiable. Once an agreement has been reached on the distribution of the seller`s salary, it is important to enter this information into the independent contractual agreement. This consolidates the payment agreement into a legally binding agreement. If the real estate company agrees to pay the seller before commissions. As a seller, you also have additional tasks, including paying for your own expenses, such as travel and deliveries. A broker may choose to pay for advertising for customers or the business, as well as office overhead, but the expenses you make, including the cost of the things you use to build relationships with the customer and attract customers, are your responsibility.
A salesperson is also responsible for all his own memberships and training. While a broker will generally buy MLS for the entire office if you wish to join the National Association of Realtors, you must pay your own fees as well as licensing and teaching fees. When a person hires an independent contractor, for example. B to design a logo or write an article, it is important to contractually agree that the client has the work he pays the contractor. This is a little less relevant in real estate, but when it comes to creating offers, copies for MLS, photos and other advertising and marketing materials, it`s relevant. If a seller uses the agency`s presentation to create a dozen current offers and then leaves the agency, does he still own the offers he has written? Let`s take a look at an example. A broker signed a listing agreement to sell a house for a 6% commission. A buyer broker approaches the seller real estate agent with a couple who wants to buy the house for $750,000.
You agree to share the commission, and at closing, the seller`s broker will be paid $45,000. They must then pay $22,500 to the buyer`s real estate agent and keep the same amount as their own commission earned. The agreement will not only indicate what the seller can and cannot do to ensure that he retains his status as an independent contractor, but also the expectations of both parties. It is likely that they will be in sections entitled “Bonds of Broker” and “Duties of Salesperson”. While there are models for individuals to properly establish this legally binding contract, both the broker and the seller have the option of adding additional information to these sections if there are additional expectations of obligations or obligations or if they feel they have clarifications that would allow the relationship to proceed smoothly.