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To play well together you both must know the rules! Part 7

By
Real Estate Agent with Serving the Greater Phoenix and Scottsdale Metropolitan Area BR534744000 & BR540649000

Here is a link back to Part 6 in case you missed it! 

Phoenix Arizona Real Estate

This section of the Agreement is one of the most critical sections to include.  It has been reviewed by real estate attorneys (who were asked to review it by someone looking to get out of it!) and is valid and enforceable in the State of Arizona.

It essentially says, in legalese, if a Buyer Associate leaves the team, they commit that they will not take any of the team's clients, leads, etc. with them - and if they do it will cost them a 60% "referral fee" for each transaction with clients of the team for the subsequent 3 years.

So far, this has resulted in "referral fees" totalling over $15,000 with an estimated $50,000 yet to come.

It also spells out that the Buyer Associate - even though they are paying a "referral fee" - acknowledges they are guilty of violating Article 16 of the NAR Code of Ethics.

The language is specific, straightforward, and necessary if you want to protect the core of your business!

Article 6

This article of the agreement serves to protect confidential information, intellectual property, and business processes and practices developed and owned by The Marriott Group.

Phoenix Arizona Real Estate

Buyer Associates will be exposed to information about The Marriott Group, the branches of Keller Williams Realty Professional Partners, the Keller Williams system, its suppliers, clients, employees, and The Marriott Group Associates and Affiliates.  This information is important and proprietary to The Marriott Group, Keller Williams Realty Professional Partners and the Keller Williams system and is not to be disclosed to anyone, including other Rainmaker Team Leaders or Associates of The Marriott Group, Keller Williams Realty Professional Partners or any other company.  This information is valuable enough that both injunctive and civil enforcement may be used to enforce these policies.

Buyer Associate agrees he/she will not furnish any information as to clients/customers, properties, prices, terms of negotiations, policies, procedures, materials of any kind, computer programs/technology, and/or forms or relationship with clients and customers or any other information concerning Rainmaker Team Leaders' or Keller Williams Realty Professional Partners' business practices to anyone without prior written authorization from Rainmaker Team Leaders AND Keller Williams Realty Professional Partners, and will be bound by and abide by this agreement.

Definition of Confidential Information and Intellectual Property:

  • Information about the affairs and activities of The Marriott Group
  • Information about the business practices of The Marriott Group, including but not limited to:

•·         Business processes

•·         Development plans

•·         Accounting

•·         Strategic alliances

•·         Information about clients, client list, and client requirements

•·         Databases and software programs developed by or for The Marriott Group

•·         Ideas and development plans for new products and services, including, but not limited to:

•·         Logic and process flowcharts

•·         Diagrammatic representations of functionality and any other aspect of the product and/or service

•·         Functional specifications

•·         Screen layouts and mock-ups

•·         Entity-relationship diagrams

•·         Formal code and other programming/pseudo-code documents

•·         Any other material that describes the ideas, function, operation, outcomes, of any products and services owned and/or currently being developed by The Marriott Group

•·         Information and Intellectual Property (as described above) developed by employees/contractors at the direction of The Marriott Group

Confidential Information and Intellectual Property may be:

  • Oral, written, electronic or other machine readable form;
  • Translated from the original, modified, updated, or altered;

Buyer Associate agrees to the following conditions:

A.  You acknowledge that information and intellectual property is the exclusive property of The Marriott Group.

B.  You will not disclose or attempt to disclose any Confidential Information and / or Intellectual Property owned by The Marriott Group without prior written authorization from The Marriott Group.

C.  You will not use or attempt to use any of the Confidential Information and/or Intellectual Property owned by The Marriott Group for your own benefit or for the benefit of any other person or entity.

D.  You will not make or take any copies of any of the Confidential Information and/or Intellectual Property owned by The Marriott Group.

E.  You must ensure the secure custody of the Confidential Information and/or Intellectual Property owned by The Marriott Group and must take all reasonable precautions to prevent the access, use, or disclosure of this information by third parties.

F.  You must destroy or return any Confidential Information and Intellectual Property to The Marriott Group at the direction of The Marriott Group.

G.  By signing this agreement, in the absence of other written agreements, the Buyer Associate agrees that The Marriott Group leads, prospects, client and customer lists, business processes and practices, manuals, referral rosters, and other business items furnished by The Marriott Group are the property of The Marriott Group and will not be disclosed or used in another business.  You continue to be bound by these conditions until released in writing by The Marriott Group.

Buyer Associates understand and agree that any Lead, Prospect, Client, Customer or Referral provided to them by The Marriott Group is a transaction specific assignment, and that the Lead, Prospect, Client, Customer or Referral and any and all referrals by extension are considered part of the client list of, and owned by, The Marriott Group.  Buyer Associates agree to make clear to any Lead, Prospect, Client, Customer or Referral with who they work at the direction of The Marriott Group that the relationship is with The Marriott Group and that any referrals from them provided directly to a Buyer Associate will be immediately forwarded to a Rainmaker Team Leader for review, acceptance and assignment.

The Buyer Associate specifically affirms that they will be bound by the terms of the agreement for a period of three (3) years following the date of termination of this agreement.  Once this agreement has been terminated, the Buyer Associate is referred to as "former Buyer Associate". 

Phoenix Arizona Real Estate

If, within the three (3) year period following the termination of the agreement and relationship between the former Buyer Associate and The Marriott Group, the former Buyer Associate engages in a Real Estate transaction with any leads, prospects, customers or clients (or their family members) with whom they came into contact with or worked with during the term of their agreement and relationship with The Marriott Group, and which are defined by this agreement as part of the client list of The Marriott Group, the former Buyer Associate irrevocably agrees to pay Keller Williams Realty Professional Partners (Broker), or the then current Broker, for the benefit of The Marriott Group (Rainmaker Team Leaders) a "Standing Referral Fee" of 60% (sixty percent) of the Gross Commission(s) that any and all such transactions generate for the side(s) of the transaction(s) handled by the former Buyer Associate. 

The former Buyer Associate agrees that this "Standing Referral Fee" shall be valid regardless of which Broker the former Buyer Associate may be with for the three (3) year period following the termination of the agreement and relationship, whether it is Keller Williams Realty Professional Partners or any other Broker in The State of Arizona, and that provision of a copy of this agreement to Keller Williams Realty Professional Partners or any other Broker in The State of Arizona shall serve as confirmation of instruction by the former Buyer Associate that the referral fee is due to Keller Williams Realty Professional Partners, or the then current Broker, for the benefit of The Marriott Group.

The former Buyer Associate specifically acknowledges that this "Standing Referral Fee" of 60% (sixty percent) of the Gross Commission is due at Close of Escrow(s) and shall be paid directly from escrow whenever possible.

If, within the three (3) year period following the termination of the agreement and relationship between the former Buyer Associate and The Marriott Group,  the former Buyer Associate refers to another Agent/Broker any leads, prospects, customers or clients (or their family members)  with whom they came into contact with or worked with during the term of their agreement and relationship with The Marriott Group, and which are defined by this agreement as part of the client list of The Marriott Group, for the purposes of receiving a referral fee, the former Buyer Associate irrevocably agrees to pay Keller Williams Realty Professional Partners (Broker), or the then current Broker, for the benefit of The Marriott Group (Rainmaker Team Leaders) a "Standing Referral Fee" of 60% (sixty percent) of the referral fee that any and all such transactions generate for the former Buyer Associate. 

The former Buyer Associate agrees that this "Standing Referral Fee" shall be valid regardless of which Broker the former Buyer Associate may be with for the three (3) year period following the termination of the agreement and relationship, whether it is Keller Williams Realty Professional Partners or any other Broker, and that provision of a copy of this agreement to Keller Williams Realty Professional Partners or any other Broker shall serve as confirmation of instruction by the former Buyer Associate that the referral fee is due to Keller Williams Realty Professional Partners, or the then current Broker, for the benefit of The Marriott Group. 

The former Buyer Associate specifically acknowledges that this "Standing Referral Fee" of 60% (sixty percent) of the referral fee is due at Close of Escrow(s) and shall be paid directly from escrow whenever possible.

Buyer Associates specifically agree that notwithstanding the referral fee obligation referenced above, if the former Buyer Associate engages in a Real Estate transaction with any leads, prospects, customers or clients (or their family members) with whom they came into contact with or worked with during the term of their agreement and relationship with The Marriott Group, and which are defined by this agreement as part of the client list of The Marriott Group, it shall be acknowledged to be a Violation of Article 16 of the Code of Ethics and Standards of Practice of the National Association of Realtors® (Effective January 1, 2006), that the Standards of Practice cited shall be 16-3, 16-5, 16-6, 16-7, 16-8, 16-18, 16-19 and 16-20, and that signing of this Agreement confirms that the former Buyer Associate understands that the above action is a violation of the Code of Ethics should they engage in a Real Estate transaction with any leads, prospects, customers or clients (or their family members) with whom they came into contact with or worked with during the term of their agreement and relationship with The Marriott Group, regardless of the circumstances, unless specifically authorized in advance in writing by The Marriott Group.

Here is a link to Part 8

Posted by

About the Authors - Updated 2018

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with Haven Express @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!

Tony Marriott - Chief Executive Officer - Haven Express @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Learning Officer - Haven Express @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
Haven Express
Keller Williams Arizona Realty

Comments (12)

Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Wow that is amazing.  It reminds me of the non competes I had to sign when I worked for large corporations years past.

Mele Kalikimaka  (Merry Christmas in Hawaiian)

Dec 25, 2006 06:50 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty
Much of the non disclosure came from a good friend and mentor who is a leading player in venture cap.  The standing referral agreement was an 11th hour brainwave in the first version of the agreement a couple of years ago.
Dec 25, 2006 07:18 AM
Omar Camejo
Florida List For Less Realty,Inc. - Ocala, FL
The best part about these agreements are that they can`t be enforced..
Dec 25, 2006 07:22 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty
Debbie - you have managed to confuse me - could you clarify?
Dec 25, 2006 08:02 AM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC
I think I picked up some ideas to enhance my agreement with my BA!  Thanks for the series, Tony
Dec 25, 2006 11:37 AM
Suzanne Marriott
Keller Williams Arizona Realty - Anthem, AZ
Associate Broker, CLHMS, e-PRO
I believe Debbie intended to say that the agreements CAN be enforced - certainly here in Arizona as history has proven.
Dec 26, 2006 02:11 AM
Suzanne Marriott
Keller Williams Arizona Realty - Anthem, AZ
Associate Broker, CLHMS, e-PRO
Tony - A truly excellent series on this agreement which I know went through many drafts and revisions, edits from several brokers, and has passed the legal counsel "test"!  Wonder if anyone else out there has some ideas to contribute that would enhance it even more?
Dec 26, 2006 03:33 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Omar Camejo I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!   

Oct 03, 2015 04:11 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Leigh Brown I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!   

Oct 03, 2015 04:12 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Enjoyed this post and want to read more - try this one - Peacocks and Pickles for Christmas 2015!  Wishing you a prosperous and Happy New Year!

Jan 13, 2016 10:11 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Jan 19, 2016 11:57 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

May 12, 2016 01:04 AM