INDEPENDENT
CONTRACTOR’S AGREEMENT
Made this ____ day of ____________ 20____ between INTERNATIONAL REFERRAL ASSOCIATES, INC., PO
Box 623, 150 E. Main Street, Carnegie, Pennsylvania
15106, hereafter called BROKER, and
_____________________________________________ residing at __________________________________________
________________________________________,
hereafter called CONTRACTOR.
WHEREAS,
the BROKER is duly licensed as a real estate broker in the States of
Pennsylvania and New Jersey and maintains an office properly equipped and
staffed by employees suitable to render service to the public, and,
WHEREAS,
the CONTRACTOR is duly licensed as a real estate sales person and properly
qualified to solicit real estate for sale or exchange,
WHEREAS,
it is deemed to be to the mutual advantage of the BROKER and CONTRACTOR to form
the association, and during the period of the association.
1. TERM.
This Agreement shall be for a period of one (1) year from the effective
date written above and may be renewed for additional one (1) year periods by
oral extension of this Agreement, or by utilizing the then current Referral
Independent Contractor’s Agreement, and upon the timely payment by CONTRACTOR
of the agreed upon fees.
2. INDEPENDENT
CONTRACTOR.
A. CONTRACTOR shall be
deemed to be an Independent Contractor. CONTRACTOR
shall be free to dispose of such portion of his entire time, energy, efforts and
skill, as he sees fit. CONTRACTOR
shall not be required to keep definite office hours, attend sales meetings or
training sessions, adhere to sales quotas or participate in “floor time”.
CONTRACTOR shall not have mandatory duties except those specifically set
out in this Agreement. Further, CONTRACTOR shall establish his own endeavors.
Nothing contained in this paragraph shall be regarded as creating any
relationship (employer/employee, joint venture, partner, shareholder) between
the parties other than as set forth herein.
B. CONTRACTORS have received
a notice that the BROKER has subscribed to the Workmen’s Compensation Statutes
of this State. In the event a Court
or arbitrator should find that CONTRACTOR has entered into any employer/employee
relationship with BROKER, (which relationship BROKER expressly denies),
CONTRACTOR hereby gives BROKER notice that Compensation policy which BROKER
subscribed to and CONTRACTOR does hereby waive claim to his right of action in
common law or under any statute or other law to recover damages for any injuries
sustained in the course of his employment.
CONTRACTOR rejects the coverage provided by the Workmen’s Compensation
Act.
C. CONTRACTOR shall not be
treated as an employee with respect of the services performed hereunder for
federal tax purposes.
D. The CONTRACTOR
understands that he/she may work as a referral agent only.
In essence, as a sub-agent to a full-time licensed real estate
salesperson. The CONTRACTOR may not
list, show, or sell real estate on a full or part-time basis; or list, show or
sell rental properties on a full or part-time basis.
The CONTRACTOR may, with an approved co-broker agreement, sit open
houses. The CONTRACTOR must refer
all sales and listing leads to the real estate agency and salesperson of their
choice. It is their responsibility
to secure a percentage referral agreement with the receiving real estate agency.
All such referral agreements must be in writing and approved by the
BROKER.
3. BROKER
RESPONSIBILITIES.
A. BROKER agrees that in
consideration of the commission earned by the CONTRACTOR, BROKER shall make
available to CONTRACTOR all guidance necessary for the CONTRACTOR to carry out
their referral business.
B. All commissions payable
to CONTRACTOR will be collected by the BROKER and transmitted to the CONTRACTOR
promptly. The CONTRACTOR nets 75%
of the commission and the BROKER nets 25% of the commission on real estate
company referrals.
4. CONTRACTOR’S
RESPONSIBILITIES.
A. The CONTRACTOR shall
share in the real estate expertise as the Broker's office may be able to
furnish. The CONTRACTOR shall
conduct his business as to maintain and increase the goodwill and reputation of
the BROKER, and the CONTRACTOR shall conform to all laws, rules, regulations,
and codes of ethics that are applicable to real estate salespersons and further
agrees to abide by all rules and regulations concerning the operation of the
BROKER’s business which the BROKER may adopt from time to time.
The CONTRACTOR shall be sub-agent only with respect to the clients and
customers for whom services shall per performed, and shall otherwise be an
independent contractor and not an employee or partner of the BROKER.
B. The CONTRACTOR agrees to
devote his time and render his services to the best of his ability in the
transaction of the business of the BROKER.
The CONTRACTOR shall transact every and any kind of real estate business
heretofore begun or hereafter undertaken or effected by him/her in the name of
the BROKER and in and through the offices of the BROKER only.
C. CONTRACTOR shall be
responsible for all personal expenses, including but not limited to, automobile,
travel, insurance, entertainment, food, lodging, license fees and dues, income
taxes, withholding taxes and the like, which may result from his being licensed
and associated with the BROKER.
D. The BROKER shall not be
liable to the CONTRACTOR for any expenses incurred by him/her, nor shall the
CONTRACTOR be liable to the BROKER for office help or expenses and the
CONTRACTOR shall have no authority to bind the BROKER by any promise or
representation unless specifically authorized in writing to do so.
Any expense paid for attorney’s fees incurred in suits for commission
shall be paid by the parties in the same proportions as their respective share
of commissions. Only the BROKER
shall have the right to retain an attorney to institute suits for commission.
E. CONTRACTOR shall not
hire, employ, contract with or for, retain, license or sponsor for license any
“sub-agent(s)”.
5. FINANCIAL OBLIGATIONS.
Real Estate
Commission:
A yearly non-refundable fee of One Hundred Dollars ($100.00) and whatever
renewal and/or transfer fees are required by the Pennsylvania or New Jersey Real
Estate Commission is the responsibility of the Independent CONTRACTOR and not
the BROKER. The yearly fee is due
on January 1 of each year and it is pro-rated by quarters should the licensee
join later on in the year. If the
yearly fee is not received by the 10th of January, a late fee of $50.00 becomes
due and payable as additional fees for a total of $150.00.
Commission Split:
The Independent CONTRACTOR shall split his/her commission with the BROKER
on an 75/25 basis for all Real Estate referrals.
6. LIABILITY AND
INDEMNIFICATION. The BROKER
shall not be liable to CONTRACTOR for any expenses incurred by him, nor shall
CONTRACTOR have authority to bind the BROKER by any promise to representations,
unless specifically authorized in advance and in writing to do so.
From time to time, claims, complaints or litigation involving the BROKER
may arise directly from the activities of the CONTRACTOR. CONTRACTOR agrees to pay all costs and expenses incurred by
the BROKER in defending or satisfying any claim or judgment assessed against the
BROKER because of CONTRACTOR’s activity.
Further, CONTRACTOR agrees to pay all reasonable legal fees.
The BROKER agrees to work closely with CONTRACTOR to keep such expenses
at a minimum, but the BROKER reserves the right to defend any such complaint,
claim or litigation as it, in its sole discretion, sees fit.
CONTRACTOR shall indemnify and hold harmless BROKER from all fines,
levies, suits, proceedings, claims, actions, or causes or actions of any kind of
whatsoever nature, including but not limited to all costs, court costs,
litigation expense and reasonable attorney’s fees, arising from, growing out
of, and in connection with or incidental to CONTRACTOR’s activities and
operation of a real estate business. Maintenance
of any insurance required by this Agreement shall not relieve CONTRACTOR of
liability under this paragraph.
7. TERMINATION.
A. By BROKER With Cause.
In the event CONTRACTOR fails to conduct his business in accordance with
the terms of this Agreement, the BROKER may terminate this Agreement immediately
and without notice.
B. By Either Party
Without Cause. Either party,
without cause, may terminate this Agreement at any time upon the giving of sixty
(60) days advance written notice to the other.
C. Effect on Commission.
CONTRACTOR shall be entitled to any commission on real estate
transactions which were under contract prior to said termination date and such
commission shall be paid to him/her, and only upon the closing and funding of
any such transaction and the complete compliance by CONTRACTOR of all
obligations under this Agreement upon termination.
Payments of commissions to CONTRACTOR shall be subject to paragraphs 4,
5, 6, and 7 of this Agreement.
8. MISCELLANEOUS
PROVISIONS.
A. Any notice required to be
given pursuant to this Agreement, shall be given in writing and delivered in
person or by Certified Mail, Return Receipt Requested, postage prepaid to the
party entitled to receive notice at the address given above.
Notices so mailed shall be deemed given as of the time of deposit in the
United States. Changes of address
may be given in the same manner as other notices.
B. No change or modification
of this Agreement shall be valid unless the same shall be in writing and signed
by all of the parties hereto; the parties acknowledge that this is the complete
and final expression of their Agreement.
C. No waiver of any breach
of any condition herein shall constitute a waiver of any subsequent breach.
D. This Agreement shall be
governed and constituted in accordance with the laws of the States of
Pennsylvania or New Jersey, whichever the sales person is licensed in.
E. The invalidity or
unenforceability of any particular word, sentence, paragraph, subparagraph, or
provision of this Agreement shall not effect the other words, sentences,
paragraphs, subparagraphs or provisions of this Agreement and shall be
interpreted in all respects as if such invalid or unenforceable parts were
omitted.
F. This Agreement shall
become binding and inure to the benefits of the parties hereto, their heirs,
executor, administrators, successors and assigns.
G. The BROKER reserves the
right to assign, pledge, hypothecate or transfer this Agreement, or its interest
herein, provided that CONTRACTOR’s rights and privileges granted herein shall
not be affected.
9. DISCLAIMER. THE SUCCESS OF THE CONTRACTOR IN THE REFERRAL REAL ESTATE
SERVICE BUSINESS IS SPECULATIVE AND WILL DEPEND ON MANY FACTORS INCLUDING, TO A
LARGE EXTENT, CONTRACTOR’S INDEPENDENT BUSINESS ABILITY. CONTRACTOR HAS NOT RELIED ON ANY WARRANTY OR REPRESENTATION
WRITTEN, PRINTED, OR ORAL, EXPRESS OR IMPLIED, AS TO HIS POTENTIAL SUCCESS IN
THE BUSINESS VENTURE CONTEMPLATED HEREBY.
IN WITNESS WHEREOF, the
parties hereto, after reading this entire Agreement, have executed this
Agreement on the day and year first written above, in duplicate or originals.
International Referral
Associates, Inc.
“CONTRACTOR“
________________________________
_________________________________
Signature
Signature
________________________________
________________________________
Street Address
Street Address
________________________________
_________________________
City, State, Zip code
City, State, Zip code