What is a real estate agent contractor agreement?
In many markets, real estate agents work as independent contractors whose licence is held by a brokerage. The relationship runs on money that arrives months later, through the brokerage, split by a formula that can include caps, fees and different splits for company leads. When an agent leaves with deals pending, an unclear agreement becomes an expensive dispute.
This agreement records the brokerage and its licence, the supervising broker, and the agent and their licence. It covers licence duties and supervision; independent contractor status; the agent's share of gross commission, an optional annual cap with a post-cap split, and an optional split on brokerage leads; payment within the business days you set; monthly desk and transaction fees, other costs the agent pays and errors and omissions insurance; leads, advertising under the brokerage name and fair housing; listings and client files belonging to the brokerage and trust money rules; and leaving, including pending deals, listings, property, records and the licence release.
- Best for
- Residential and commercial brokerages, real estate teams
- Signed by
- The brokerage (managing broker) and the agent
- Commission terms
- Split, optional cap and post-cap split, lead split, fees
- Length
- 3 pages, initialled on every page
When to use a real estate agent contractor agreement
- An experienced agent moving their licence to your brokerage
- A newly licensed agent joining on a lower split
- Moving existing agents onto a capped commission model
- Agreeing a different split for brokerage-supplied leads
- Putting exit terms in writing for pending deals
What you fill in
22 blanks, then the name and email of each person who signs: brokerage, agent.
1 The parties
- Start date*
- Brokerage (legal name)*
- Brokerage licence number*
- Office address*
- Supervising or managing broker*
- Agent's full name*
- Agent's licence number and expiry*
2 Commission
- Currency*
- Agent's share of gross commission (%)*
- Annual cap on the brokerage's share (optional)
- Cap year runs from
- Agent's share after the cap (%)
- Agent's share on leads supplied by the brokerage (%)
- Agent paid within (business days of the brokerage receiving commission)*
3 Fees
- Monthly desk or technology fee
- Transaction fee per closed deal
- Other fees and costs paid by the agent
- Errors and omissions insurance* The brokerage holds errors and omissions insurance covering the agent; the agent pays the per-transaction charge set in the brokerage's fee schedule. · The brokerage holds errors and omissions insurance covering the agent at no charge to the agent. · The agent must hold their own errors and omissions insurance and show proof each year.
4 Leads and marketing
- Leads and referrals
5 Leaving
- Pending deals when the agent leaves* The agent is paid their normal split on transactions under contract when they leave that later close, less any amount owed to the brokerage. · The agent is paid a reduced share, set in the brokerage's policy manual, on pending transactions completed by another agent.
- Notice to end (days)*
- Governing law*
6 Who signs
- Brokerage signature and date, job title, initials on every page · The designated or managing broker, or another officer authorised to sign agent agreements.
- Agent signature and date, initials on every page · The licensed agent or salesperson joining the brokerage.
What the real estate agent contractor agreement covers
- Licence and supervision
- Independent contractor
- Commission
- Fees and costs
- Leads and marketing
- Listings and client files
- Leaving the Brokerage
- General
Using the real estate agent contractor agreement, step by step
1 Name the parties
Enter the brokerage, its licence and office, the supervising broker, and the agent with their licence number and expiry.
2 Set the commission
Enter the agent's share of gross commission and how many business days you take to pay. Add a cap, post-cap split and cap year if you use one, and a lead split if different.
3 Fees and insurance
Enter any monthly fee and transaction fee, the costs the agent pays, and choose how errors and omissions insurance works.
4 Leads and leaving
Describe how leads are shared, choose how pending deals are paid when the agent leaves, and set the notice period and governing law.
5 Sign
Send it to the agent to initial and sign online. Track the agent's licence expiry in FileIt so you're reminded before it lapses.
Tips before you send it
- Some places set conditions for agents to be treated as contractors, such as a written agreement and pay by commission only. Check yours.
- Spell out exactly what counts towards the cap: the brokerage's share only, or fees as well.
- Keep the policy manual and fee schedule current. The agreement makes them part of the deal.
- Decide in advance what happens to pending deals and listings when an agent leaves.
Sign it online in minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. FileIt builds the PDF with every signature, date and initials box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in your vault and emailed to everyone.
Real estate agent contractor agreement: frequently asked questions
Who owns the listings?
Listing and buyer agency agreements are made in the brokerage's name and belong to the brokerage. A listing can move with the agent only if the client agrees in writing and the brokerage approves.
How does the cap work?
Once the brokerage has received the cap amount as its share from the agent's deals in a cap year, the agent receives the higher post-cap split for the rest of that year. Transaction and other fees still apply unless your fee schedule says otherwise.
What happens to pending deals when an agent leaves?
You choose: either the agent is paid their normal split on deals under contract that later close, or a reduced share set in your policy manual when another agent completes them.
Can the agent rebate part of their commission?
Only with the supervising broker's approval and only as the law allows.