A Real Estate Independent Contractor Agreement is a legally binding document that sets the terms of a working relationship between an agent working as an independent contractor and a real estate company.
The contractor agreement defines the commission split, the agent’s licensure requirements, and the expenses each party is responsible for. It may also set the process and amounts for the agent taking a draw when the company agrees to pay them a certain amount before commissions.
- Ensures the agent has and maintains the appropriate licensing to sell homes or commercial real estate in their specific location.
- Establishes whether or not the agency requires the agent to join and pay dues to the relevant board of realtors.
- Formally decides whether or not the agent can take a draw, how that process will work, and how much the agent is due.
- Sets the split of commissions and expenses between the agent and the real estate company.
What Is an Independent Real Estate Agent?
An independent real estate agent is a licensed realtor who secures clients, plans open houses, and conducts sales. The agency may provide them with office space, supplies, marketing assistance, advance payments, and leads. Independent agents have more flexibility but less stability and support.
Real estate agencies often hire realtors as employees, but they may bring on an agent as a contractor and provide them with office space and supplies for a portion of their commissions.
Compared to working as an employee at a real estate company, an agent working as an independent contractor must acquire their own insurance. They also can set their own working hours instead of working on the company’s specified schedule.
Whether working independently or with a company, real estate agents:
- Guide clients through the home or commercial real estate buying and selling processes
- Find relevant houses to tour for clients wanting to buy property
- Find relevant buyers for clients wanting to sell property
- Act on behalf of their clients’ best interests when negotiating offers
- Advise clients on important decisions and help them with paperwork
- Consistently communicate with clients and the other parties involved in a sale
- Help clients through the home inspection and closing processes
Salary & Hourly Rate
According to data from ZipRecruiter, in 2023, independent contracting real estate agents make an average salary of $86,356 per year, or $42 an hour. Their earnings range from $28,000 a year to $144,000 per year. Salary depends on location, experience level, and how much the contractor works since they decide their own hours.
Below, you can download a Real Estate Agent Independent Contractor Agreement template in PDF or Word format: