There are thousands of real estate companies around the country both big and small. Most of them require that an agent joining them sign a contract. Know that this is NOT a standardized contract. Each company will have their own rules, restrictions, compensation plans and penalties for a large variety of things, but biggest would be leaving them. Yes a penalty for leaving them! It is very important that you read and understand your entire contract, if you don't, have a legal professional do it for you so that you understand it COMPLETELY!
Too often a trusting agent, especially a new one, signs a contract without reading it prior, only to understand it later and after the fact. A great new agent with another company was looking at a Keller Williams office, the model, the team environment, everything and determined he was at the wrong place, he wanted to make a move. Problem was, his contract. There was a monetary penalty for leaving and a "No Compete" within a 20 mile radius! Essentially it put him out of business if he left. He says he's told they don't enforce it but who wants to be the guinea pig and test that or take that risk in this market? Ouch!
Another story I heard was a company requiring a current contract. In order to get agents to re-sign when their old term was up, they let it expire, then when the agent goes to collect their commission on a sale, they get paid only 50%. That is say 20 or 30% less than their normal split. Of course the agent is furious as it is explained to them that without a contract, they only get only 50%. Which often results in a frustrated agent, signing without reading the new contract, which of course has new stuff in it they wouldn't even think of. The assumption is, it is the same as the old one.
Read folks, you have to read or get legal advice!!! I will share with you that here at Keller Williams, we don't require big contracts. In fact, if you decided to leave, you can take your listings with you. We are like the risk free company. Truely!! And we are more than that. There's no back stabbing among agents when you have profit share at every office. Yes, profit share! Weekly free trainings in every office for every level of agent. A complete web site for every individual agent branded to them! Oh and the opportunity to keep 100% of your compensation. Just ask me about it, I share!!!
Back to the point. If you are contemplating getting your license, shop around and READ your contract! If your current company is asking you to sign a new contract, READ the contract. And if you've already signed? Consult an attorney if you don't like what you are discovering now.
To check out an agent web site by KW, check out mine at www.HomesofFairfieldCounty.com
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