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Real Estate Salesman Agreement

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INDEPENDENT CONTRACTOR FREELANCE WRITER AGREEMENT

THIS AGREEMENT made and entered into on the date last written below, by and between (hereinafter "Employer"), and , an independent contractor (hereinafter "Writer");

WHEREAS, the Employer desires to retain the services of Writer, and Writer desires to render services to the Employer, upon the terms and conditions hereinafter stated:

NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, do hereby promise and agree as follows:

SECTION 1 – SCOPE OF DUTIES TO BE PROVIDED

1.1  Term. Employer agrees to hire Writer, at will, for a term commencing on and continuing until terminated in accordance with Section 4 of this agreement.

1.2  Duties. Writer agrees to perform work for the Employer on the terms and conditions set forth in this agreement and agrees to devote all necessary time and attention (reasonable periods of illness excepted) to the performance of the duties specified in this agreement. Writer's duties shall include the following:

Writer further agrees that in all aspects of such work, Writer shall comply with the policies, standards, regulations of the Employer from time to time established, and shall perform the duties assigned faithfully, intelligently, to the best of his/her/their ability, and in the best interest of the Employer.

SECTION 2 – CONFIDENTIALITY

2.1  Confidentiality. Writer acknowledges and agrees that all financial and accounting records, lists of property owned by Employer, including amounts paid therefore, client and customer lists, and other Employer data and information related to its business (hereinafter collectively "Confidential Information") are valuable assets of the Employer. Except for disclosures required to be made to advance the business of the Employer and information which is a matter of public record, Writer shall not, during the term of this Agreement or after the termination of this Agreement, disclose any Confidential Information to any person or use any Confidential Information for the benefit of Writer or any other person, except with the prior written consent of the Employer. Employer understands that certain Confidential Information may be required to be disclosed to certain individuals: directors, officers, employees, agents, or advisors (collectively, Representatives) of Writer. Writer shall maintain records of the persons to whom Confidential Information is distributed, will inform all such persons of the confidential nature of the information, will direct them to treat such information in accordance with this agreement, will exercise such precautions or measures as may be reasonable in the circumstances to prevent improper use of Confidential Information by them, and will be responsible for any breaches by them of the provisions of this agreement. The term “confidential information” does not include information that is or becomes publicly available (other than through breach of this Agreement) or information that is or becomes available to Writer on a non-confidential basis, provided that the source of such information was not known by Writer (after such inquiry as would be reasonable in the circumstances) to be bound by a confidentiality agreement or other legal or contractual obligation of confidentiality with respect to such information. In the event that Writer or any of Writer’s representatives, assigns, or agents are requested or required by law or legal process to disclose any of the Confidential Information, the party required to disclose such information shall provide Employer with prompt oral and written notice before making any disclosure. In addition, Confidential Information may be disclosed to the extent required in the course of inspections or inquiries by federal or state regulatory agencies to whose jurisdiction Writer is subject and that have the legal right to inspect the files that contain the Confidential Information, and Writer will advise Employer promptly upon such disclosure.

2.2  Return of Documents. Writer acknowledges and agrees that all originals and copies of records, reports, documents, lists, plans, memoranda, notes and other documentation related to the business of the Employer or containing any Confidential Information shall be the sole and exclusive property of the Employer, and shall be returned to the Employer upon the termination of this Agreement or upon the written request of the Employer.

2.3  No Release. Writer agrees that the termination of this Agreement shall not release Writer from any obligations under Section 2.1 or 2.2.

SECTION 3 - COMPENSATION

3.1  Compensation. In consideration of all services to be rendered by Writer to the Employer, the Employer shall pay to said the amount of $ per hour week bi-weekly month year other

3.2  Withholding; Other Benefits. Compensation paid pursuant to this Agreement shall not be subject to the customary withholding of income taxes and other employment taxes. Writer shall be solely responsible for reporting and paying any such taxes. The Employer shall not provide Writer with any coverage or participation in the Employer's accident and health insurance, life insurance, disability income insurance, medical expense reimbursement, wage continuation plans, or other fringe benefits provided to regular employees.

SECTION 4 - TERMINATION

4.1  Termination at Will. This Agreement may be terminated by the Employer immediately, at will, and in the sole discretion of Employer. Writer may terminate this Agreement upon days written notice to Employer. This Agreement also may be terminated at any time upon the mutual written agreement of the Employer and Writer.

SECTION 5 - INDEPENDENT CONTRACTOR STATUS

5.1 Writer acknowledges that he/she is an independent contractor and is not an agent, partner, joint venturer nor employee of Employer. Writer shall have no authority to bind or otherwise obligate Employer in any manner nor shall Writer represent to anyone that it has a right to do so. Writer further agrees that in the event that the Employer suffers any loss or damage as a result of a violation of this provision Writer shall indemnify and hold harmless the Employer from any such loss or damage.

5.2  Assignment. The Writer shall not assign any of his/her rights under this agreement, or delegate the performance of any of his/her duties hereunder, without the prior written consent of the Employer.

SECTION 6 - REPRESENTATIONS AND WARRANTIES OF WRITER

6.1 Writer represents and warrants to the Employer that there is no employment contract or other contractual obligation to which Writer is subject that prevents Writer from entering into this Agreement or from performing fully Writer's duties under this Agreement.

SECTION 7 - MISCELLANEOUS PROVISIONS

7.1 The provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, personal representatives, successors and assigns of the parties. Any provision hereof which imposes upon Writer or Employer an obligation after termination or expiration of this Agreement shall survive termination or expiration hereof and be binding upon Writer or Employer.

7.2 No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

7.3 This Agreement shall be governed by and shall be construed in accordance with the laws of the State of .

7.4 This Agreement constitutes the entire agreement between the parties pertaining to its subject matter and supersedes all prior contemporaneous agreements, representations and understandings of the parties. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all parties.

7.5  Severability. If any provision of these policies and regulations or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of these policies and regulations which can be given effect without the invalid provision or application, and to this end the provisions of these policies and regulations are severable. In lieu thereof, there shall be added a provision as similar in terms to such illegal, invalid and unenforceable provision as may be possible and be legal, valid and enforceable.

WITNESS OUR SIGNATURES, this the day of , 20 .

EMPLOYER

WRITER

Enter text✕

What the Real Estate Salesman Agreement Is

A Real Estate Salesman Agreement is a written contract that defines the working relationship between a licensed real estate broker and an affiliated salesperson or agent. It typically specifies the salesperson's scope of duties, compensation or commission split, licensing and sponsorship requirements, territorial or client limits, confidentiality and noncompete provisions, and procedures for termination. The agreement clarifies whether the salesperson is an independent contractor or employee for tax and benefits purposes and often includes compliance representations about state licensing and brokerage policies to reduce regulatory risk.

Why a Clear Agreement Matters

A written salesman agreement reduces disputes, documents compensation and licensing obligations, and establishes enforceable expectations between broker and salesperson while supporting tax and regulatory compliance.

Why a Clear Agreement Matters

Who typically signs and uses this agreement

Common parties and stakeholders who prepare, sign, or rely on a Real Estate Salesman Agreement.

  • Brokerage owners or managing brokers who set commission policies, supervise agents, and maintain records for state licensing and audits.
  • Licensed salespersons or agents who need a written record of compensation, duties, territory, and termination clauses.
  • Accounting or HR staff responsible for tax classification (W-2 vs 1099), record retention, and benefit eligibility.

Core provisions to include in a professional agreement

A complete Real Estate Salesman Agreement covers six core areas so parties know duties, pay, compliance steps, dispute resolution, recordkeeping, and how the relationship ends.

Parties

Identify the broker entity and the salesperson by full legal name and license number; include corporate d/b/a where applicable and contact information.

Term

Specify start date and whether the agreement renews automatically, and include conditions that trigger termination or nonrenewal.

Duties

Describe broker supervision rights, sales targets, required reporting, MLS access rules, and permitted client solicitation practices.

Compensation

State commission splits, timing of commission disbursements, expense reimbursements, and any clawback for refunded transactions.

Licensing & Compliance

Require disclosure of active license status, broker sponsorship, continuing education, and compliance with state real estate commission rules.

Termination

Include notice periods, post-termination commission rights, confidentiality, non-solicitation limits, and dispute-resolution method.

Step-by-step: How to complete the Real Estate Salesman Agreement

Follow these steps to prepare, review, sign, and retain a legally sound agreement.

  • 01
    Prepare document: Draft using broker-approved template and insert accurate party and license data.
  • 02
    Verify licenses: Confirm active status with the state real estate commission before execution.
  • 03
    Agree compensation: Confirm commission split, timing, and any reimbursements in clear terms.
  • 04
    Sign and store: Execute with signatures and retain the final agreement per retention rules.

How to set up an online signing workflow

Configure a consistent digital workflow so every agreement captures required fields and audit data.

Field Configuration
Signer order Set broker then salesperson order to capture approvals sequentially.
Authentication Use email + SMS code or stronger methods for identity assurance.
Required fields Mark signature, date, license number, and compensation fields as mandatory.
Templates Save reusable templates to ensure uniform terms across hires.

Where to send or file the executed agreement

After signing, route the agreement to internal and regulatory destinations as appropriate.

  • Broker records: Keep the executed copy in the broker's central records and HR file.
  • Salesperson copy: Provide the salesperson a certified or final signed copy for their records.
  • Accounting: Send to accounting for payroll classification and commission tracking.
  • State commission (if required): Submit any required disclosures to the state real estate commission when applicable.

Digital signing and platform considerations

Use a platform that supports standard document formats, strong audit trails, and your required authentication levels.

  • Formats supported: PDF | DOCX | HTML
  • Integrations: Salesforce, Microsoft 365, NetSuite, Google Workspace
  • Authentication: Email/SMS, KBA, or advanced signer authentication

Key dates and reporting deadlines to watch

Track dates that affect licensing, taxes, commissions, and document retention to stay compliant.

Effective date:

Determines when duties and commission entitlements begin.

Commission payment window:

Follow brokerage policy and state rules for timely payment to agents.

1099-NEC reporting:

Provide 1099-NEC for nonemployee compensation by Jan 31 (to payee and IRS).

License renewals:

Note state renewal deadlines to maintain active license status.

Retention start:

Retention obligations start on agreement creation or termination date.

Execution checklist and notarization flow

Follow these steps for valid execution and any notarization or witnessing that state law or brokerage policy requires.

01

Confirm identity

Verify signer identity using ID credential analysis or accepted methods.

02

Complete signatures

Sign in the designated signature block and date the document.

03

Notarization (if requested)

Notarize in-person or use RON where permitted and recorded.

04

Witnessing (if required)

Add witness signatures only if state law or the agreement requires them.

05

Attach exhibits

Add commission schedules or disclosure attachments before finalizing.

06

Distribute copies

Send final signed copies to broker, salesperson, and accounting.

07

Store audit trail

Preserve time-stamped audit trail and signature certificate.

08

Record retention

Ensure stored copies meet retention timelines and accessibility.

Common mistakes to avoid

  • Using informal names instead of legal names can delay payments and create identification disputes during audits or licensing checks.
  • Failing to document the commission split and payment timing clearly often leads to disputes and collections actions between broker and agent.
  • Misclassifying a salesperson as an independent contractor without examining control factors may trigger payroll tax audits and penalties.
  • Not retaining the signed agreement and audit trail risks noncompliance with recordkeeping rules and complicates post-termination commission claims.

Penalties and legal risks from incorrect agreements

Tax penalties: IRC §6721 penalties for incorrect or late information returns; failing to report properly can trigger per-form fines.
Backup withholding: Missing or incorrect TIN can trigger 24% backup withholding obligations for the payer.
License discipline: State real estate commissions may impose fines, suspensions, or license revocation for noncompliance.
Breach damages: Contract breaches can result in damages, restitution of commissions, or injunctive relief.
I-9 exposure: If employment status is misclassified, I-9 and payroll violations can incur civil penalties.
Reputational risk: Disputes over pay or client ownership can damage brokerage reputation and client relationships.

Security and compliance considerations

Encryption: AES-256 at rest, TLS 1.2/1.3 in transit
Audit trail: Detailed timestamps, IP addresses, and user actions
Regulatory standards: ESIGN, UETA, SOC 2 Type II compliance
Healthcare support: HIPAA-compliant with BAA available
FDA / Audit: 21 CFR Part 11 features available
Accessibility: WCAG 2.0 Level AA compliant

How firms use signed agreements in practice

Real-world examples show how digital execution and clear agreements speed hiring, commissions, and compliance.

Tim Martin — Martin Properties

Tim Martin used online agreement execution to process hires remotely and maintain compliance.

  • Closed deals remotely and tracked commissions reliably.
  • His team reports consistent, auditable records that reduced in-person steps and sped payment handling while preserving security and compliance.

Brian Fitzgibbons — Optica Ventures LLC

Optica adopted digital signing for agent agreements to streamline onboarding across offices.

  • Improved document turnaround across locations.
  • The firm centralized templates and audit trails, reducing administrative time and ensuring consistent contract terms for all affiliated salespeople.

Typical signers and their roles

Managing Broker

The managing broker signs to accept supervisory responsibilities and confirm brokerage policies; they ensure the salesperson's activities comply with state commission rules and internal procedures, and they retain the executed agreement in the brokerage record system.

Licensed Salesperson

The salesperson signs to accept commission terms, reporting obligations, and any post-termination restrictions; their signature confirms active license status and consent to the brokerage's payment and recordkeeping arrangements.

eSignature vendor comparison for executing agreements

Compare common eSignature plan features and compliance capabilities used when executing Real Estate Salesman Agreements; signNow appears first for reference.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day free trial Free trial available Free trial available Free trial available Free trial available
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions about the agreement

Answers to common questions on enforceability, signatures, tax classification, and recordkeeping for Real Estate Salesman Agreements.


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