Facilitating joint ventures among associates
Thursday, February 07, 2013
By Charles S. Bonamer
ORRA class instructor, "Brokerage Management"
Associates within the same office frequently choose to share commissions, and brokers or company management are in a position to determine the procedure that is to be followed. Having a structure in place can often eliminate commission disputes before they occur.
I. A salesperson may wish to "hand off” a principal or prospect to another agent.
A. There may be a personality conflict and a salesperson may recognize a need to save the transaction by sharing it with another salesperson.
B. Vacation coverage may require another associate to service a transaction. Some associates regularly cover for each other or work in teams.
II. Oral understandings should be discouraged. Associates should be encouraged to reduce all understandings to writing prior to the initial contact with the prospect or principal.
III. Some brokers have found an intra-office agreement to be effective in promoting a clear understanding. A copy should be retained by each agent with the original copy held by the manager.
Sample intra-office joint venture agreement
Charles S. Bonamer is the instructor of ORRA’s Brokerage Management course, which is offered monthly and worth three continuing education credits. Class dates, more information, and registration are available via the online ORRA Education Calendar.
Reprinted from the Florida Real Estate Brokerage Management manual, by Charles S. Bonamer. Copyright ©1987-2012 by TRANS-EQUITY, Inc.