Agent and Loan Officer Contract
THIS INDEPENDENT CONTRACTOR AGREEMENT ("Agreement"), made in the State of California and entered into this date at San Diego, California, between 4 USA Loans, Inc. dba Premier Realty Associates (hereinafter referred to as the "Broker") and (hereinafter referred to as the "Associate-Licensee"). The Broker and Associate-Licensee agree Broker is a licensed real estate broker and has a mortgage loan originator license in the State of California. Associate-Licensee agrees all DBAs that Broker owns under 4 USA Loans, Inc. are incorporated into this agreement for which Associate-Licensee uses with Broker approval. Whereas, Broker maintains an office equipped with furnishings, equipment and facilities adequate for the proper operation of a real estate and mortgage business, staffed with trained employees engaged in serving the public as a real estate and mortgage business. Whereas, Broker supervises and manages the activities of the Associate-Licensee for compliance with Commissioner's Regulations and state and federal laws. Whereas, Associate-Licensee is now engaged in business as a real estate licensee, licensed by the state of California and Whereas, the purpose of this agreement is to meet the requirements of DRE Commissioner's Regulation 2726, Broker-Salesman Relationship Agreement.
Associate-Licensee represents that he or she is a duly licensed real estate salesperson or broker in the state of California and will maintain his or her real estate license in good standing with the California Department of Real Estate during the term of this agreement. AssociateLicensee will do business as an agent for Premier Realty Associates, a DBA of 4 USA Loans, Inc. unless Broker approves another DBA. Associate-Licensee will always conduct him/herself in full compliance with the Statutes of California and the Rules and Regulations of the Department of Real Estate in a way which reflects the high standards of the Broker.
INDEPENDENT CONTRACTOR STATUS:
Associate-Licensee agrees to work with Broker as an Independent Contractor, and not as a W2 employee. All costs and obligations incurred by AssociateLicensee in conducting his/her independent business shall be paid solely by Associate-Licensee, who will hold Broker harmless from any and all costs and is responsible for timely payment of all of his/her own expenses under Broker supervision. Such as, but not limited to: industry association dues, licensing renewals, cellular telephones, automobile insurance etc., as they are incurred. Broker will not withhold any Federal or State Income Tax, Social Security (FICA) or Unemployment (FUTA) taxes from AssociateLicensee's commissions paid. Associate-licensee is personally responsible for paying any and all Federal and State Income, Social Security and other taxes, and for maintaining all expense records as requires by law and hold Broker harmless from any liability or costs thereof. Broker will provide Contractor with an IRS Form 1099 MISC at the end of each calendar year. Associate-Licensee agrees to receive their 1099 MISC form via email or US Mail from broker and acknowledges that agreement does not constitute a W2 employment agreement by either party, shall not be construed as a partnership, and Broker shall not be liable for any obligation, injury, disability, or liability incurred by the Associate-Licensee.
REAL ESTATE COMMISSIONS AND FEES:
Compensation and commission splits paid to AssociateLicensee are as follows:
REAL ESTATE TRANSACTIONS:
On closed real estate transactions, Associate-Licensee will receive 100% of commissions paid to Broker. Said compensation is to be paid to Associate-Licensee out of funds actually collected by Broker. Associate-Licensee may receive his/her commission directly from escrow on a real estate transaction if Broker's in-house transaction coordinators has approved the completed file 72 hours before close of escrow. A complete file includes all documents outlined in the company transaction checklist and all documents must be fully executed and complete.
LOAN ORIGINATION COMMISSIONS AND FEES:
The Broker and Associate-licensee agree as follows: Broker is doing business as USA Loans for brokered loans in the State of California. For brokered loans, an Associate-Licensee with a Mortgage Loan Originator license will receive a commission of 1% of the loan amount for all loans brokered with the broker approved lenders.
The Broker's fees for residential leases is 10% or $500.00 dollars whichever is less. Associate-Licensee must work with in-house transaction coordinators and have a full file in accordance with the company lease transactions checklist. Associate-Licensee cannot have ownership interest in the property.
If Associate-Licensee represents a buyer or a seller in a commercial transaction, the Associate-Licensee will receive 90% of all commission received by the Broker. Associate-Licensee will receive 90% of all commission received by the Broker on commercial leases with a minimum Broker fee of $500.00 dollars. The commissions split is based off the total commissions offered by the sellers prior to any rebates, credits, or commission that is negotiated down from the original commission offered. The following are considered commercial transactions for commission and errors and insurance purposes and does not include all: any residential investment property that was under construction or incomplete, bulk residential property sales, any transaction where constructions plans or permits are involved as a part of the disclosure made by investors on a LLC or corporation owned by Associate-Licensee, 5 or more unit properties, mixed use properties, vacant land over 5 acres and industrial properties. All acts must happen in escrow before close unless Broker has approved otherwise.
Referral fees earned by Associate-Licensee must be paid to Broker. Associate-licensee cannot directly receive a referral fee. The Broker's fees for residential referrals are 10% or $500 dollars whichever is less. The Broker's fees for commercial referrals are 10% with a minimum fee of $500.00.
RECRUITMENT PASSIVE INCOME PROGRAM:
An Associate-Licensee, whose license is active with Broker and who successfully refers another licensed real estate Associate-licensee that signs a contract with Broker shall be added as a referral agent to the referred Associate-Licensee's transactions and earn $100 dollars when the referred Associate-Licensee closes a real estate transaction at the Broker's expense.
INDEPENDENT CONTRACTOR ACTIVITIES AND DUTIES:
Associate-Licensee agrees to limit his or her real estate activity to the solicitation of listings and/or buyers and facilitating the sale or purchase or real estate. Associate-licensee agrees to follow the terms outlined in the Company Policy and Procedures Manual. Prohibited Associate-Licensee activities include: property management, loan modifications, legal consultation, tax advice, leasing property the Associate-Licensee owns in the Broker's name, business sales and lease option purchases. Activities that require Broker written permission include: processing loans and providing Broker Price Opinions.
Associate-Licensee shall not engage in activity that is illegal, unethical, or that could lead to their real estate license being suspended or revoked. Any issues that are progressing to threats of legal actions arising from your transaction need to be conveyed to the Broker within 24 hours. All acts must happen in escrow before close unless Broker has approved otherwise. Associate-Licensee cannot directly receive any compensation for performing real estate activities or loan activities without Broker's signed approval to escrow.
All property listings, agreements, acts or actions for performance of licensed acts, which are taken or performed in connections with this Agreement, shall be taken and performed in the name of the Broker. Associate-Licensee agrees and hereby grants all rights and title of these listings to Broker. Associate-Licensee shall have no authority to bind broker to any agreement, representation or promise and Broker will not be liable for any liability or obligation incurred by Associate-Licensee unless Broker specifically authorizes it in writing.
Associate-Licensee is not to personally use or disclose or furnish, directly or indirectly, to any person, firm, company or Broker engaged in the real estate business, any confidential information or property rights of Broker, as acquired by Associate-Licensee as a result of the relationship hereby established.
Associate-Licensee will be responsible for and hereby agrees to pay a legal defense payment of $5,000 to Broker in the event a demand or lawsuit is made to or against Broker by any attorney or party to the contracts for one of the Associate-Licensee's transactions. The legal defense payment is payable and due at this time the demand is made to Broker and is non-refundable. These funds will be used to cover attorney's fees as a result of defending this demand/lawsuit/claim either by a contracted attorney hired by Broker or pay your deductible with the Broker's E and O insurance carrier. Associate-Licensee is responsible for any outstanding Broker fees not paid by their client if any.
Associate-Licensees conducting a loan must adhere to the company policies and procedures. Failure to follow company procedure will be considered negligence by the Associate-Licensee. Associate-Licensee is responsible for returning any loan commissions in the event of an early payoff where a lender is asking for the return of commission.
Associate-Licensee shall not commit acts for which the Department of Real Estate of the State of California (DRE) RESPA or HUD are authorized to restrict, suspend or revoke Associate-Licensee's license or impose other discipline, under the California Business and Professions Coded Section 10176 or 10177 or other applicable provisions of State or Federal law. If the Broker finds that the Associate-Licensee's action has violated the above provisions based on the evidence the Broker finds or evidence that is reported to Broker, the broker will retain any commissions or the Associate-Licensee will return any commissions received to the Broker for purposes of defending any potential liability and at Broker's discretion.
Associate-Licensee will not handle trust funds. Trust funds include buyer deposit checks and lease checks. Broker does not maintain a trust account for client escrow deposits for other outside escrow companies or for property management.
Associate-licensee must use approved in-house company transaction coordinators on all real estate transactions. All documents and files related to transactions, listings, and leads are the property of the Broker. Associate-Licensee is responsible to store all documents in a secure place. Associate-licensee must provide the Broker with a completed file with all necessary documents on each closed transaction. Commissions earned by Associate-Licensee shall not be released to Associate-Licensee until a completed file is delivered to and approved by Broker. Any document or in-house form that is asked for via email from the Broker or the Broker's support staff prior to recording becomes part of the necessary items for a complete file. Associate-Licensee must be accessible to Broker via phone or email and respond to Broker within 24 hours. All contracts must be on CAR zipForm® contracts unless approved by Broker.
All advertising done by done by Associate-Licensee needs to be approved by the Broker, shall not violate any state or federal laws and shall fall within the guidelines set by the California Department of Real Estate. Associate-Licensee is expected to be familiar with these rules, laws and guidelines. No telephone solicitations shall be made by Associate-Licensee to people who have registered their telephone numbers on a national do not call registry. Broker is not responsible or liable for any advertising done by Associate-Licensee and Associate-Licensee agrees to hold broker harmless of any costs or damages, legal or otherwise, that may occur from such advertising.
FICTICIOIUS BUSINESS NAMES AND LOGOS:
All marketing material which includes but is not limited to signage, stationary and websites, the Associate-Licensee shall use the name "Premier Realty Associates" or "USA loans" and corresponding logo, unless Associate-Licensee has made an agreement with Broker to use a DBA of their own that is filed by the Broker with the California Department of Real Estate. Broker retains exclusive rights to the Premier Realty Associates and USA loans name and logos. Associate-Licensee agrees to discontinue all uses of the Premier Realty Associates and USA Loans name and logos upon termination of this agreement.
Associate-Licensee to maintain in force and effect personal automobile liability insurance. If Associate-licensee has an automobile accident, Associate-Licensee indemnifies and hold Broker harmless from any claims or demands and is liable for any suit brought by the client.
Associate-licensee agrees that, for all actions that Associate-licensee does during his/her contractual relationship with Broker, Associate-licensee will forever indemnify and hold harmless Broker, their heirs, successors, spouses and assigns, from any and all claims, complaints, causes of action, Realtor arbitration demands, damages and liabilities of every kind whatsoever, whether known or unknown, including without limitation of any action, omission, negligence or any other bases if liability or complaint, in any forum, brought by any third party against Broker. If the Broker initiates any litigation or arbitration action on behalf of the Associate-Licensee or if the Broker must defend any action of the Associate-Licensee in litigation or arbitration, Associate-Licensee will pay all related filing fees, attorney fees, and other fees that may apply. In additions, Associate-licensee shall be responsible for any commission reimbursement, rebate or refund ordered by a court of law, Arbitration or Mediation Panel on previously earned sales commissions.
Mediation is recommended as a method of resolving disputes arising out of this agreement between Broker and Associate-licensee. If mediation is not mutually agreed upon then arbitration is mandatory. All disputes or claims between Associate-Licensee and other licensee(s) associated with Broker, or between Associate-licensee and Association of Realtors of which all such disputing parties are members for arbitration pursuant to the provisions of its Bylaws, as may be amended from time to time, are incorporated as part of this Agreement by reference. If the bylaws of the Association do not cover arbitration of the dispute, or if the Association declines jurisdiction over the dispute, then arbitration shall be pursuant to the rules of California law. The Federal Arbitration Act, Title 9, U.S. Code, Section 1, et seq., shall govern this Agreement. In the event of a lawsuit or arbitration between Broker and Associate-Licensee, Associate-Licensee agrees that the venue will be in a San Diego court or with a San Diego arbitrator.
Either party may terminate this Agreement at any time. This agreement shall govern all disputes and claims even after its termination. Upon termination of this Agreement, all financial obligations owed to Broker that are imposed by terms of this Agreement shall be paid. All Associate-Licensee client referral agreements to future Associate-Licensee1s broker shall be paid in full upon termination regardless if the escrow has closed, if fees are owed to Broker on an open escrow contract.
FAILURE TO COMPLETE PENDING TRANSACTION:
In the event Associate-Licensee, due to early termination of this agreement, health related issues, negligence identified the Broker, or any other reason fails to complete a pending transaction, broker shall make arrangements for the completion of the transaction. Broker and/or another Associate-Licensee assigned to complete the transaction shall receive fair compensation for their duties performed. This compensation is to be deducted from the Associate-Licensee's portion of the commission who failed to or was removed from the transaction by the Broker. Associate-Licensee agrees that the Broker will decide commission disbursement.
Associate-Licensee is required to notify the Broker within 72 hours of an executed listing agreement, a fully executed purchase agreement, executed lease agreement, or executed referral agreements by the use of an online form located on the Premier Realty Associates company website www.mypremieragent.com under the agent login tab. If Associate-Licensee does not notify Broker within 72 hours, Associate-Licensee's commission will be reduced by 20% of the total gross commission. Further, Associate-Licensee understands that under California Business & Professions Code 10137, it is unlawful for any real estate licensee who is not the broker of record to receive direct payment for any activity which requires a real estate license without said broker's prior written authorization. Accordingly, if Associate-Licensee does not report their real estate activities to this office as provided herein, and then closes a transaction without notifying our office, then either: (1) AssociateLicensee shall forfeit all commissions due on that transaction, or (2) if Associate-licensee has already received his or her commission, then Associate-Licensee shall pay over their entire commission received to broker of record upon demand for violating the terms of this contract. The foregoing is in addition to any other measure and/or remedies that the broker deems warranted under the circumstances and this includes without limitation the right of the broker to proceed with litigation against the Associatelicensee to recover any commission paid on the transaction or otherwise.
Associate-Licensee must use approved in-house company transaction coordinators on all real estate transactions. This service, which has a value of $395, is provided at no charge to Associate-Licensee. Associate-Licensee must work closely with transaction coordinator during the transaction to make sure that all paperwork is completed before close of escrow.
Any notice required to be given under the provisions of this agreement other than
Reporting shall be given in writing. The following shall be acceptable forms of delivery: 1) By registered or certified mail enclosing to the address set forth under the respective signatures herein below, or to such other address as either part hereto shall designate by such notice. Any such notice given hereunder shall be effective as of the time it is deposited in the United States Mails. 2) Via Email. Email notice shall only by valid if the receiver acknowledges receipt of such email with a reply email. The effective time shall be the time the receiver sends the reply acknowledgement.
Waiver of, or failure to strictly enforce, by the parties hereto any of the provisions of this agreement or any default hereunder shall not constitute or operate as a waiver of such parties' right to demand strict performance of this or any other provision hereof or any other default hereunder.
AGREEMENTS AND AMENDMENTS:
This agreement along with the terms in the Company Policy and Procedures Manual, embodies the entire agreement between the parties hereto with relation to the subject matter hereof, and supersedes any previous agreement or understanding, whether verbal or otherwise, with relation hereto. This agreement may not be amended, changed, revised, or altered except by an instrument in writing signed by all of the parties hereto. The Company Policy and Procedures Manual may be updated and revised. Associate-licensee is responsible to adhere to the most recent publication of the Company Policy and Procedures Manual readily available on line in our agent resources located on the Company website www.mypremieragent.com - agent login tab.
Each paragraph of this agreement shall be and remain separate from and independent of and severable from all and any other paragraphs herein except where otherwise indicated by the context of the agreement. The decision or declaration that one or more of the paragraphs are null and void shall have no effect on the remaining paragraphs of this agreement.
Agent Full Name:
City, State, Zip:
NMLS Loan License# or N/A:
Name of Realtor Association or N/ A:
Date of Birth:
The Company is licensed by the Bureau of Real Estate under the following name: 4 USA Loans, d/b/a Premier Realty Associates (BRE license# 01425679). Premier Realty Associates is a full-service real estate company located in San Diego, committed to the very highest level of professionalism to our local and national clients. Our #1 goal is to have 100% customer satisfaction. This Policies and Procedures manual is a reference guide on how to conduct business on a day to day basis. This is only a guide; Associate Licensee should always use their professional judgment.
Achieving a reputation for service and excellence above and beyond the standards of our competition is our paramount goal in business. Achieving that reputation comes from a dedication to consistent service, focused agency activities and ethical business practices.
Agent is not an employee, but an Associate-licensee and must out an Associate-Licensees Agreement and a 1099 tax form. You do not have an employee-employer relationship with this company. You are also considered an Associate-licensee for of Unemployment Insurance. You are associated with the Company for an unspecified term on an at-will basis. Except where it is otherwise expressly agreed in writing with the company, either party may terminate their association at any time with or without cause or reason.
To complete their hire package, Associate-licensee is required to provide broker the following items:
If agent fails to provide the above items in the time specified above, then the Agents most recent due commission check will be withheld until completion of hire package.
All agents must use approved company transaction coordinators on all real estate transactions. The value for this is $395 and is provided to agents at no charge.
Real Estate Forms:
All forms must be accessed through Zipforms or approved by company broker.
DRE licensing and Education:
You are required to maintain a valid California real estate salesperson license in good standing while associated with this company. If your license expires, is suspended or revoked, you may not engage in any activities on behalf of company for which a real estate license is required. The broker may designate another company salesperson to handle your prospects, listings and transactions during any time your license lapses, and allocate such reasonable compensation to that salesperson for work performed. Agent is responsible to meet the education requirements of the Department of Real Estate
Referral fees paid to outside brokers and/or salespersons:
Referral fees shall only be paid to the broker of any state licensed agent/salesperson in accordance with a written agreement between salespersons, approved by the Premier Realty Associates broker prior to close of escrow. All referral fees are to be paid out of the salesperson's gross share of commissions. A social security number of the referring broker or EIN number is required, along with a signature of the referring broker, in order to process the referral fee.
E & O Insurance:
All real estate transactions are covered under our company E & O Policy through our insurance carrier. Agent is responsible for the $5,000 deductible on any transactions brokered through Premier Real Estate that result in a lawsuit.
Broker DOES NOT have a trust fund account. DO NOT touch client's checks. The mishandling of trust funds is the number one reason real estate agents and loan officers licensed by the California Bureau Real Estate have their licenses suspended or revoked.
Under NO circumstances will an agent accept earnest money deposit checks. Do not handle any money in the form of check, money order, cash or otherwise, regarding good faith deposits, appraisals, home inspections, repairs, credit reports, or other service providers.
Have your client deliver or send escrow deposit directly to the escrow company. Give client escrow information needed for them to mail or drop off deposit directly to escrow within three business days after acceptance of offer. Have client pay for home inspections and/or appraisals at the time of inspection.
In the event any trust funds are received or handled, please contact the Broker immediately so that the funds may be strictly handled and accounted for in accordance with the laws and regulations enforced by the California Department of Real Estate.
Advertising and Marketing:
All advertising and marketing materials must receive approval from the broker. CAR Advertising Rules to be guideline. All sales associates must strictly adhere to any state or federal "do not call" list regulations. Failure to do so may result in immediate termination.
Signs and Lockboxes:
Agent is responsible for ordering, purchasing all signs and lockboxes from company approved vendors. This list is available on the company website at www.mypremieragent.com
Premier Realty Associates does not discriminate, nor should agent, based on race, color, religion, sex, national origin, family status, sexual orientation or disability. It is the law. All agents are expected to assist all customers to purchase, sell or obtain financing.
Your files are a record of every event relative to your dealings with your clients on a listing or sale transaction. You must retain copies of all listings, deposit receipts and other documents executed by you or obtained by you in connection with a real estate transaction, whether the sale is consummated or not. You must maintain a neat and orderly file on every listing and sale on which you work. All files are property of the company and are to remain either in your possession or the company's until the file is closed.
Litigation and Claims Handling:
You are required to:
Disputes During Escrow:
If a dispute arises during escrow between buyer and seller, buyer, the cooperating broker and/or the company, which cannot be resolved by negotiations between the parties and the agent(s) involved, and the company determines that it is in the best interest of the company to resolve the matter during escrow rather than risk a potential claim or litigation after close of escrow; then company broker has the right to negotiate a resolution of the dispute which may involve a reduction in the commission to be received, or a credit given to one of the parties. In that event, and regardless of actual company or agent liability or responsibility in the dispute, the agent(s} and the company will participate in the commission reduction or credit pro rata.
Sexual Harassment Policy:
Premier Realty Associates disapproves of and does not tolerate Sexual harassment of any kind. All agents must avoid offensive or inappropriate sexual behavior at work and are responsible for assuring that the workplace is free from sexual harassment at all times.
Premier Realty Associates prohibits: unwelcome sexual advances, requests for sexual acts or favors, with or without accompanying promises, threats or reciprocal favors or actions, or other verbal or physical conduct of a sexual nature which creates a hostile or offensive working environment.
Complaints of sexual harassment will be promptly and carefully investigated, and all agents are assured that they will be free from any reprisal or retaliation from filing such complaints. Any agent who has a complaint of sexual harassment at work by anyone should immediately bring the complaint to the attention of the broker.
Office investigations will include interviews with all relevant persons, including the complainant, the accused, and other potential witnesses. Agents are assured that the privacy of the complainant and the person accused of sexual harassment will be kept
The broker will review findings with the complainant at the conclusion of the investigation. If the investigation reveals that the complaint appears to be valid, immediate and appropriate corrective action, up to an including termination, will be taken to stop the harassment and prevent its recurrence. The above policy also applies to harassment of any kind.
Your association with the company can be terminated by either party, with or without cause, at any time upon written notice given to the other party. If this agreement is terminated while you have listings or pending transactions that require further work normally rendered by you, the broker will make arrangements with another salesperson in the company to perform the required work. The licensee performing the work shall be reasonably compensated for completing the work, and such reasonable compensation shall be deducted from your share of the commission. The Broker has the sole right to determine the commission share to Broker-Associate.
Selling of your own Personal Residence:
If you are listing your own Personal Residence, the following conditions must be met to comply with our Errors & Omissions Policy:
Listings are property of the company, even upon your termination. Within 24 hours after notice of termination by either party, you must provide your broker with a list of all active listings taken you, and all pending transactions in which, if completed, you will be entitled to compensation from the company in accordance with the terms of your Associate-Licensee agreement, or other written agreement. You specifically agree that you may not contact the sellers properties where listings were taken by you for the purpose of directly or indirectly soliciting or inducing the client to terminate their listing with the company.
I, the undersigned sales associate for Premier Realty Associates, do hereby acknowledge that I have read, understand and agree to abide by the policy stated herein and all subsequent amendments.
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Document Name: Agent and Loan Officer Contract
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