Are you looking to form a real estate team in Florida? Before you jump in, it’s important to have a solid team agreement in place.
A real estate team agreement outlines the roles and responsibilities of each team member, as well as how commissions and expenses will be divided. This document helps to avoid misunderstandings and disputes down the line.
Here are some important clauses to include in your real estate team agreement:
1. Roles and Responsibilities
Clearly define the roles and responsibilities of each team member, including any administrative staff. This section should outline who is responsible for marketing, lead generation, contract negotiation, and other tasks. It’s important to also outline the chain of command and decision-making process.
2. Commission Structure
How will commissions be split between team members? Will they be split equally or based on the amount of work each person contributes? This section should also outline how expenses will be divided among team members.
3. Non-compete and Non-solicitation Clauses
To protect the team’s business, it’s important to include non-compete and non-solicitation clauses in the agreement. These clauses prevent team members from competing with the team or soliciting clients for their own personal gain.
In the event that a team member decides to leave the team, it’s important to have a termination clause in place. This should outline the steps that need to be taken and any financial obligations that need to be met.
5. Intellectual Property and Confidentiality
This section should outline how intellectual property, such as branding and marketing materials, will be owned and used by the team. It should also include a confidentiality clause to protect any sensitive information about clients or the team’s operations.
Having a well-written real estate team agreement in place can help to avoid disputes and ensure that everyone is on the same page. It’s important to consult a legal professional when drafting your agreement to ensure that it meets all necessary legal requirements and protects the team’s interests.