Free Real Estate Employee Contract Template
Real Estate Employee Contract
This Real Estate Employee Contract ("Agreement") is entered into on [Effective Date] by and between [Your Company Name], a [State] Corporation with its principal place of business located at [Your Company Address] ("Employer"), and [Employee Name], residing at [Employee Address] ("Employee").
WHEREAS, the Employer is engaged in the business of providing real estate services and has a need for qualified personnel to perform certain duties and responsibilities associated with its business operations; and
WHEREAS, the Employee represents that they have the necessary qualifications, experience, and abilities to perform the duties of the position offered by the Employer; and
WHEREAS, the Employer desires to employ the Employee, and the Employee desires to be employed by the Employer, and both parties are willing to do so under the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
I. Position and Duties
A. Title: The Employee is hereby employed as a Real Estate Agent. The Employee's primary role will be to assist clients in buying, selling, and renting properties.
B. Duties: The Employee shall perform all duties associated with the position of Real Estate Agent, including, but not limited to:
-
Representing the Employer in meetings with potential and existing clients.
-
Conducting market analysis to advise clients on property values.
-
Preparing and presenting purchase offers and rental agreements.
-
Coordinating open houses and property viewings.
-
Negotiating purchase and lease terms on behalf of clients.
-
Maintaining accurate records of all transactions and interactions.
-
Complying with all applicable laws and regulations related to real estate transactions.
C. Performance Expectations: The Employee is expected to demonstrate professionalism, integrity, and dedication in the performance of their duties and to achieve a minimum annual sales target of $2 million in property value.
D. Location of Work: The primary location of work will be at the Employer's office located at [Your Company Address]. However, the Employee may be required to travel within the city limits to meet with clients and show properties.
II. Employment Term
A. Start Date: The employment under this Agreement shall commence on [Date] and continue until terminated as provided herein.
B. Duration: This Agreement is at-will and does not specify an end date. Either party may terminate the Agreement at any time, with or without cause, subject to the termination conditions outlined in this Agreement.
C. Probationary Period: The first ninety (90) days of employment shall be considered a probationary period. During this time, both the Employer and the Employee have the right to terminate the employment with a notice period of fourteen (14) days, without further obligations.
III. Compensation and Benefits
A. Salary and Commission: The Employee shall be compensated on a commission basis, receiving 3% of the gross sales price for each transaction they directly facilitate. Additionally, for annual sales exceeding $5 million, the Employee shall receive a bonus commission of 0.5% on the excess amount.
B. Payment Schedule: Commissions are paid monthly, within ten (10) business days following the end of each month, based on transactions closed and fully processed within that month.
C. Benefits:
-
Health Insurance: The Employer will provide the Employee with health insurance coverage under the company's group plan, with the Employer covering 70% of the monthly premium. Coverage begins 30 days after the start of employment.
-
Retirement Plan: The Employee will be eligible to participate in the Employer's 401(k) plan after six (6) months of employment, with the Employer matching contributions up to 5% of the Employee's monthly commission.
-
Professional Development: The Employer will reimburse the Employee for approved real estate related training and certification expenses up to $1,500 annually.
D. Vacation and Personal Leave: The Employee is entitled to ten (10) days of paid vacation annually, accruing at a rate of 0.83 days per month, available for use after the first six (6) months of employment. Additionally, the Employee is allowed five (5) days of paid personal leave each year for matters such as illness or family emergencies.
IV. Work Hours and Vacation
A. Work Hours: The Employee's work hours shall be flexible due to the nature of real estate transactions. However, the Employee is expected to maintain availability to clients and the Employer from 9:00 AM to 6:00 PM, Monday through Friday. Weekend work may be required, with time-off in lieu provided for weekend days worked.
B. Vacation:
-
Scheduling Vacation Time: Vacation time must be requested at least two (2) weeks in advance and approved by the Employer, considering the business's operational needs.
-
Carryover: Unused vacation days may be carried over into the following year, with a maximum of five (5) days allowable for carryover.
-
Vacation Pay: Vacation pay is calculated based on the average monthly commission earned by the Employee in the previous six (6) months.
V. Confidentiality Agreement
A. Confidential Information: The Employee agrees not to disclose, disseminate, or use for their own benefit any confidential information belonging to the Employer or its clients, including but not limited to client lists, transaction details, marketing strategies, operational practices, and pricing information, both during and for a period of five (5) years following the termination of employment.
B. Protection of Confidentiality: The Employee will take all necessary precautions to protect the confidentiality of proprietary information and to prevent it from falling into the hands of third parties.
C. Return of Materials: Upon termination of employment, the Employee agrees to return all documents, materials, and electronic data, including copies that contain confidential information, to the Employer.
VI. Non-Compete Clause
A. Restrictions: For a period of two (2) years after the termination of employment, the Employee shall not directly or indirectly engage in, be employed by, or have any ownership interest in any business entity that competes with the Employer within a fifty (50) mile radius of the Employer’s primary place of business.
B. Exceptions: Ownership of less than 1% of the shares of a publicly traded company shall not constitute a violation of this clause.
C. Enforcement: The Employee acknowledges that any breach of this clause would cause substantial harm to the Employer, and agrees to monetary damages and injunctive relief as remedies.
VII. Termination Conditions
A. At-Will Employment: Either the Employer or the Employee may terminate this Agreement at any time, with or without cause, subject to the provisions outlined in this section.
B. Notice Period: Termination of employment by either party requires a written notice of thirty (30) days. Failure by the Employee to provide such notice will result in a deduction equal to the Employee's average monthly commission from the final payment.
C. Immediate Termination: The Employer reserves the right to terminate the employment immediately, without notice or severance pay, under circumstances including, but not limited to, theft, fraud, breach of confidentiality, and gross misconduct.
D. Severance: In the event of termination by the Employer without cause, the Employee will be entitled to severance pay equivalent to two (2) months of the average monthly commission earned in the last six (6) months of employment.
E. Post-Termination Obligations: Upon termination, the Employee must return all Employer property and confidential information as outlined in Section V.C. The confidentiality and non-compete clauses outlined in Sections V and VI will remain in effect post-termination as specified.
VIII. Dispute Resolution
A. Mediation: In the event of a dispute arising under this Agreement, the parties agree to first attempt to resolve the dispute through mediation with a mutually agreed-upon mediator in the jurisdiction where the Employer's office is located.
B. Arbitration: If mediation does not resolve the dispute within thirty (30) days, the parties agree to submit the dispute to binding arbitration. The arbitration shall be conducted by a single arbitrator, selected in accordance with the rules of the American Arbitration Association, and shall take place in the same jurisdiction as the mediation.
C. Costs: Each party will be responsible for its own costs incurred during mediation and arbitration, but the fees and expenses of the mediator or arbitrator will be shared equally between the parties.
IX. Intellectual Property
A. Ownership: All work products, inventions, designs, and innovations created by the Employee in the course of their employment related to the Employer’s business are the exclusive property of the Employer.
B. Disclosure: The Employee agrees to disclose promptly any such creations to the Employer and to perform all necessary actions to ensure such intellectual property rights are vested in the Employer.
X. Amendment and Waiver
A. Amendments: This Agreement may be amended or modified only by a written document signed by both parties.
B. Waiver: The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.
Signatures
This Agreement represents the entire agreement between the Employer and the Employee regarding the terms of employment, superseding all prior negotiations, representations, or agreements, either written or oral. By signing below, both the Employer and the Employee acknowledge that they have read, understood, and agreed to the terms and conditions set forth in this Agreement.
Employer
[Name]
[Title]
[Date]
Employee
[Name]
[Title]
[Date]
