What fees should an agent receive upon termination? – Texas REALTORS®-2021十大正规彩票app

May 01, 2022

I’m a broker and I recently terminated the services of one of my agents who signed the Texas REALTORS® Independent Contractor Agreement for Sales Associate (TXR 2301). Which fees should the agent receive upon termination?

You owe the agent any fees earned before the termination was effective.

The Independent Contractor Agreement for Sales Associate (TXR 2301) outlines the rights of the broker and agent concerning earned fees upon termination of agent sponsorship. According to Paragraph 16C of the contract, an agent’s fees are earned at the time a broker’s fees are earned under the applicable agreement for brokerage services—unless the fees are subject to arbitration or litigation. Each brokerage agreement defines when a broker’s fees are earned. Generally, a broker’s fees are earned when contracts or leases are fully executed.

Paragraphs 16G and 16H address the issue of fees payable to the departing agent if prospects are reassigned to another agent to complete a transaction. The parties could agree to other rules regarding this fee sharing, but a different agreement should be in writing to prevent disputes. Ultimately, Paragraph 21B outlines that an agent’s entitlement to earned fees that remain unpaid as of the termination of the agreement will be in accordance with the agreed-upon terms between the broker and agent provided in this section. Therefore, it is imperative that a fee schedule be attached or terms of another agreement outlining the terms of payment of such fees be listed, so that it is incorporated into the Independent Contract Agreement for Sales Associate to prevent disputes.

Legal Disclaimer

Texas REALTORS® provides content through various online platforms, including this blog. By interacting with any of our blog posts, you agree to comply with the following terms and conditions:

a. You will not post any defamatory, discriminatory, libelous, threatening, vulgar, sexually explicit, abusive, profane, rude, or obscene content (including comments);
b. You will not use our blog posts or posted content to do anything unlawful, misleading, malicious, or discriminatory; and
c. You will not post content or take any action on our blog posts that infringes someone else’s rights or otherwise violates the law.
d. You will not post any information intended to sell or advertise a business, product, or service.

Texas REALTORS®, in its sole discretion, reserves the right to remove any content you have uploaded, posted, or submitted onto any of our blog posts if we believe that it violates these terms or conditions.

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While Texas REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, Texas REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here. Any legal or other information found on this page or at other sites to which we link, should be verified before it is relied upon.