A written employment agreement between a broker and a licensee is an essential document for any real estate professional. It outlines the terms and conditions of the working relationship between the broker and the licensee, and serves as a legally binding agreement. In order for the agreement to be valid, it must be signed by both parties. Here`s what you need to know.
Firstly, it`s important to understand what a broker and licensee are. In real estate, a broker is a licensed professional who manages a real estate business or brokerage. They are responsible for supervising and training licensees, who are licensed salespeople who work under the broker`s supervision. An employment agreement is a document that outlines the terms and conditions of the working relationship between a broker and licensee.
The agreement should be comprehensive and cover all aspects of the working relationship, including compensation, commission, responsibilities, expectations, and termination provisions. It should also include any non-compete clauses, confidentiality agreements, or other legal provisions that are necessary to protect the interests of both parties.
When it comes to signing the agreement, both the broker and licensee must sign the document in order for it to be valid. This means that the agreement must be signed by the licensee, indicating their agreement to the terms and conditions of the employment agreement, as well as the broker, who is responsible for providing the licensee with the necessary support and resources to perform their job effectively.
It`s important to note that while a written employment agreement is not required by law, it is strongly recommended. Having a written agreement in place protects both the broker and licensee, and can help to prevent misunderstandings and conflicts from arising in the future.
In conclusion, a written employment agreement between a broker and licensee must be signed by both parties in order to be valid. It is a crucial document that outlines the terms and conditions of the working relationship between the two parties, and can help to prevent misunderstandings and conflicts from arising. As a real estate professional, it`s important to ensure that you have a comprehensive employment agreement in place with your broker.