Real estate teams need real estate team agreements to outline each member’s responsibilities and compensation.
But like any legal agreement, you need to phrase it correctly for it to be enforceable.
So, let’s dig deeper into what makes an agreement enforceable between real estate agents.
A real estate team agreement template outlines the terms and conditions of a business arrangement between two or more parties. Include details like who owns which parts of the business, how profits are shared, everyone’s obligations, and dispute resolution.
If you’re forming a team, you need an agreement. Consequences of not having an agreement in place include split profits, a lack of communication between team members, and, ultimately, costly disputes.
Consider an agreement template like the foundation or structure of your team’s operations.
What makes a contract enforceable? It’s more than just creating a team name, identifying a team leader, and getting each agent to agree.
You must write a contract unambiguously. And it should also include all the essential elements of a valid contract. So, offer, acceptance, obligations, compensation, consideration, intention to create legal relations and the capacity of each agent.
Your company or broker may already have other resources or templates available. Alternatively, you can look for a free template online.
Below are some sample provisions you may include in your real estate team agreement.
So, by including these provisions in your team agreement template, you can ensure a legally sound and mutually beneficial partnership. But before you create the form, you need to work with the other members to determine the above.
Here are a few sample templates that you can use as a starting point:
A contract between two parties cannot be enforced if the terms are unclear and do not protect both sides equally. Examples of unenforceability in a contract include:
By avoiding these common pitfalls, you’ll be able to create an enforceable real estate team agreement template.
But remember, your contract should always be tailored to the specific needs of your business and the parties involved. And if you’re unsure about any of the legalities involved in creating a real estate team agreement, it’s best to consult a lawyer.
Of course, you don’t need an on-staff lawyer to create a team. A few services can help you create a real estate team agreement template. They include LawDepot, RocketLawyer, and LegalZoom.
These companies will provide you with templates. But it would help if you still got them reviewed by someone who knows the law.
Still, realistically, each person involved should have their lawyer involved to review.
You’re forming a team. And that’s exciting!
But don’t forget to dot your i’s and cross your t’s.
You need to create a real estate team the right way. A team agreement template can help.
A team contract should include the names and addresses of all parties involved, an executive summary outlining the purpose of the agreement, and a description of each party’s responsibilities and roles.
How do you organize your real estate team?Organizing your real estate team is a multi-step process. First, you’ll need to decide who’s responsible for what tasks and roles, decide how profits will be shared, and set other compensation arrangements. Draft an agreement that all parties sign to make it legally binding. Finally, consult a lawyer=. Your broker or agency may be able to help.
What is the difference between a real estate team, broker, or agency?A real estate team typically includes multiple agents working on the same transaction or transactions from start to finish, often within another brokerage or agency.
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