[CA] I need a template for a Real Estate Agent Independent Contractor Agreement with commission splits and arbitration agreements.


April 22, 2025 9 2

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Hi! I need a template for a Real Estate Agent Independent Contractor Agreement with commission splits and arbitration agreements, etc.

I understand you're looking for a Real Estate Agent Independent Contractor Agreement template. Are there any specific details or clauses you want to include in the agreement?

We're drafting independent contractor agreements for our current salespersons. We need a contract that clearly defines the relationship between the brokerage and the agents.

We would like the agreement to cover:

  • Compensation structure and commission splits: A clause stating that all commissions must be paid to the brokerage first. The brokerage will deduct its share depending on the commission split before disbursing payment to the agent. Any transaction conducted outside of this process will result in the immediate termination of the contract.

  • Roles and responsibilities of the independent contractor.

  • Compliance with brokerage policies and industry regulations. We currently have a salesperson who has not been entirely forthcoming with his transactions/commissions and we would possibly like to add a clause that specifies that the salesperson may only conduct real estate-related activities through our brokerage and within the scope of their responsibilities as a licensed real estate agent.

  • A provision clarifying that the brokerage has no association with or responsibility for any salespersons managing or leasing short-term vacation rentals, including Airbnb or similar platforms.

  • Client confidentiality and non-solicitation provisions.

  • Termination clauses and dispute resolution mechanisms. I personally think it may be a good idea to have an arbitration agreement within the contract.

Are there any particular laws or regulations in your state that you need to consider when drafting this agreement?

California Law.

Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with your contract drafting.

Nope.

Justin C

Hi there, thanks for choosing AskaLawyer! I’m Justin, a lawyer here to help with your legal questions.

Justin C

Drafting a Real Estate Agent Independent Contractor Agreement in California requires meticulous attention to state-specific regulations, particularly concerning independent contractor classification under the AB5 law and the "ABC test," commission disbursement protocols, and compliance with the California Department of Real Estate (DRE) guidelines (Assembly Bill No. 5). The agreement should:

  • Clearly define the commission structure
  • Mandate that all commissions are paid to the brokerage first
  • Outline the agent's responsibilities
  • Restrict real estate activities to those conducted through the brokerage
  • Address client confidentiality and non-solicitation
  • Clarify the brokerage's non-involvement in short-term rentals
  • Detail termination clauses
  • Include an arbitration agreement for dispute resolution

It is highly advisable to have a California real estate attorney review the contract to ensure compliance with all applicable state laws.