To play well together you both must know the rules! Part 10 of 10

By
Real Estate Agent with Haven Express @ Keller Williams Arizona Realty

 

Here is a link back to Part 9 in case you missed it! 

This is the final section of the Agreement.  It covers the termination process, and has a clause designed to protect the team against "solo agents" in "Buyer Associates clothing".  Having encountered situations last year where an agent would join the team, take an incredible amount of my time and the support staff's time, only for them to depart back to a solo career armed with the training we had provided, we needed a mechanism for recovering our investment in time and effort.  Hence the grid and the time frames.  The amounts we use are not punitive - they are reasonable compensation for services rendered by us to the Buyer Associate, and this portion of the agreement is covered in great detail prior to signing.  So far, we have not "lost" a recruit due to this clause - but we're watching it closely.

The agreement is signed by me, the Buyer Associate AND the Designated Broker.  The Broker's signature makes the standing referral agreement (mentioned in an earlier section) valid and binding.

Article 11

This agreement may be amended by Rainmaker Team Leaders should Keller Williams International or Keller Williams Realty Professional Partners make changes that impact the Rainmaker Team Leaders or the Buyer Associate.

Buyer Associate understands that this Buyer Associate Agreement differs from Buyer Associate Agreements offered by other Rainmaker Teams and from Individual Agent Agreements offered by Keller Williams Realty Professional Partners, and agrees to that difference.

Phoenix Arizona Real Estate

Either party may terminate this agreement and the relationship created hereby hereto, with or without cause, at any time.  Buyer Associate affirms that they will be bound by the terms of the agreement for a period of three (3) years following the date of termination of this agreement.

Upon termination of this agreement, Rainmaker Team Leaders or assignee shall handle all negotiations, customers/clients, and/or services commenced by Buyer Associate, during the term of this agreement unless superseded in writing at time of termination. 

It is agreed and understood that any tangible items provided as tools are the possession of Rainmaker Team Leaders, unless otherwise agreed to in writing.  These items may include computers, written materials, preprinted forms, signs, etc.  In the event of termination, these items shall be returned immediately to Rainmaker Team Leaders in the condition originally obtained, excluding normal wear and tear. 

Phoenix Arizona Real Estate

If the Buyer Associate leaves the team during the first 3 years of this agreement, either voluntarily or as a result of failing to comply with a specific provision of this agreement, it is agreed and understood that liquidated damages to compensate The Marriott Group for their investment in training, coaching and advice will be due and collected from the former Buyer Associate as "Referral Fees" from future transactions by the former Buyer Associate with the former Buyer Associate's own sphere of influence and/or by their own marketing and prospecting efforts, for the remainder of the 3 year period following the date the Buyer Associate joined the The Marriott Group, according to the following schedule:

If the former Buyer Associate leaves the team:

The "Referral Fee" for the remainder of the 3 year period shall be:

Within the first 6 months of joining the team

X%                              up to a maximum of $xx,xxx

Between Month 7 and Month 12

X%                              up to a maximum of $xx,xxx

Between Month 13 and Month 24

X%                              up to a maximum of $xx,xxx

Between Month 25 and Month 36

X%                              up to a maximum of $xx,xxx

Buyer Associate commission split will be paid only if Buyer Associate is still working under this agreement at the time of close of escrow of transaction(s).  A Buyer Associate no longer under this agreement at time of close of escrow will not receive any compensation unless superseded in writing at time of termination of this agreement.

Anthony R. "Tony" Marriott - Rainmaker Team Leader                               Date

<<Name of Licensee>>- Buyer Associate                                              Date

Keller Williams Realty Professional Partners Broker                                  Date

 

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Tony and Suzanne Marriott
Associate Brokers, REALTORS
Keller Williams Arizona Realty
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Show All Comments
Ambassador
896,583
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Realtor - Ann Arbor Real Estate
Thanks Tony, I cut and paste it all in Word and I will make it my own. You are so generous to share with us.
Mar 23, 2007 09:14 AM #33
Rainmaker
913,086
Tony Marriott
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Associate Broker, REALTOR
Missy - no problem - that's what we're all here for!
Mar 23, 2007 09:49 AM #34
Ambassador
896,583
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Realtor - Ann Arbor Real Estate
Tony, I did use your contract yesterday for a buyer agent I am considering hiring. I just did a find and replace from Word and took out stuff that didn't apply. Thank you so much ! I know it took alot of time to come up with that and post so thank you, thank you, thank you. I have been looking for a good contract for a while.
Apr 19, 2007 06:29 AM #35
Rainmaker
913,086
Tony Marriott
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Associate Broker, REALTOR
Missy - Glad to hear it proved useful!  Congratulations on the new Buyer Agent!  BTW - I lived in Ann Arbor / Ypsi area in the early 90's.  How's the market there these days?
Apr 19, 2007 09:01 AM #36
Ambassador
896,583
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Realtor - Ann Arbor Real Estate
Terrible, over 42 months of inventory in certain price points. So much inventory with Big 3 not moving people in and all the downsizing. Pfizer leaving Ann Arbor and giving their employees up to 100K in loss on sale has brought home prices down.
Apr 19, 2007 09:12 AM #37
Rainmaker
913,086
Tony Marriott
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Associate Broker, REALTOR
Wow - I knew things must be getting tough - but no idea that tough.  My parents managed to sell their home by the Detroit Golf Club in Palmer Park in 30 days - but had to go 10% under other actives to do so.  Luckily they bought in 1968 so had plenty of room to negotiate.  Not a pretty picture these days.
Apr 19, 2007 09:28 AM #38
Rainer
6,962
Kathy Howe
how2educate LLC / how2arizona real estate - Sedona, AZ

Tony,

I just read your Buyeir Associate IC agreement series.  Nice work

Kathy Howe

Jul 08, 2007 08:57 PM #39
Rainmaker
913,086
Tony Marriott
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Associate Broker, REALTOR
Kathy - Thanks for taking the time to read it - and thanks for the feedback!
Jul 09, 2007 08:41 AM #40
Rainer
71,135
Jim Fischetti
The Fischetti Group/Keller Williams - Wake Forest, NC

Great post. Thanks for sharing. Maybe we should make this required reading.

 

Thanks again.

 

Jim in NC

Mar 19, 2008 10:32 AM #41
Rainer
10,268
Giuseppe "Joe" Pistone
JWC Florida Realty - Pembroke Pines, FL

Tony -

Great job!!

Aug 13, 2008 02:28 PM #42
Rainmaker
276,187
Cheryl Powell
RE/MAX Executive Realty - The Powell Team - Harrisburg, NC
The Powell Team- Helping YOU make the right move!

WOW Tony!  You really put a lot of time and effort into this series.  You shared some great ideas and I really appreciate it.

Sep 13, 2008 12:29 AM #43
Rainmaker
331,052
Andrew Monaghan
Your Phoenix Home Source - Glendale, AZ
CRS, GRI, EPro Associate Broker

Thank you for the input, I realize the value of an agreement, both sides know the ground rules and teh costs.

Oct 05, 2008 01:07 AM #44
Rainmaker
645,178
Team Honeycutt
Allen Tate - Concord, NC

Tony, sorry I missed the whole series.  Enjoyed this blog.  Thanks for sharing.

Oct 05, 2008 05:28 PM #45
Rainmaker
645,178
Team Honeycutt
Allen Tate - Concord, NC

Great series---It is alot to think about however it is something all teams should do. 

Oct 10, 2008 11:59 AM #46
Rainmaker
276,187
Cheryl Powell
RE/MAX Executive Realty - The Powell Team - Harrisburg, NC
The Powell Team- Helping YOU make the right move!

This is a great blog, Tony. You obviously put a lot of time and thought into it. Thanks!

May 03, 2009 10:20 AM #47
Rainmaker
183,810
Sheila Moran
RE/MAX Access (Garden Ridge, San Antonio, New Braunfels) - New Braunfels, TX
SanAntonioSheila.com, RE/MAX Access, 210-32

Tony,

How did I just find you on #10...

looks like I need to go back and review a few things..

thanks for the informative info.....

Jun 01, 2009 08:31 PM #48
Rainmaker
164,576
Stephanie Arnett
Coldwell Banker SRE ~ Starkville, MS - Starkville, MS
SRS, IMSD, Broker Associate, REALTOR

Awesome...Awesome...& Awesome!!

Jul 03, 2010 09:51 AM #49
Rainmaker
645,178
Team Honeycutt
Allen Tate - Concord, NC

Am going back through the whole series again.

The 3 year referral fee I have never seen. How's the enforcement rate with that?

Thanks for a very detailed synposis of the whole issue.

Margaret

Jul 03, 2010 11:46 AM #50
Rainmaker
645,178
Team Honeycutt
Allen Tate - Concord, NC

Work on the plan, and then work the plan. You've given everyone a concise, thorough road map.

Thanks for sharing.

Margaret

Aug 18, 2010 05:35 PM #51
Rainmaker
645,178
Team Honeycutt
Allen Tate - Concord, NC

I am new to the team here so this article was very valuable!

Apr 07, 2011 05:22 PM #52
Show All Comments
Rainmaker
913,086

Tony Marriott

Associate Broker, REALTOR
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