Product Info - Free Commission Agreements - Real Estate: Sales Manager

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Sample Real Estate Manager Compensation Plan Template

iReal Estate Manager Compensation Agreement

This document describes the sales compensation agreement between iii ____________________________(“Company”)and iv_________________________________ (“Payee”) regarding terms related to compensation.

 

Company and Payee enter into this agreement whereby Payee provides services to the Company and customers of company, in return for compensation specified in this agreement.

Duration:

This agreement covers the period starting from v ___________ and ends on _______________.

 

Commissions will be calculated and paid once every week, for the preceding week. Commissions will be calculated and paid out as part of the next payroll cycle, following the month for which commissions are calculated.

Services:

The primary service rendered by this payee managing real estate agents in their sales activities.

In addition,payee is also involved in personallyarranging and closing real estate sales transactions between buyer and sellers. Additionally,payee also arranges and closes leases between owners and renters.

Payee can be a listing agent, buying agent or play both roles in a deal.

 

Base Pay:

vi Sales Manager's base salary (if any) is specified as part of a separate agreement.

 

Sales Compensation:

Targetedsalescompensationforthefullyearis vii________.Thesalescompensationis not capped.

 

Other Compensation:

Payee is not due any other compensation as part of this agreement.

 

Manager Lease Override

This incentive pays overrideson lease transactions closed by payee’s subordinate agents. This commission is paid every week.

Credits:

 

Any deals that are sold by Payee’s subordinate agents are eligible for this commission. Commissionable transactions are closed deals between owner and renter for leases. Payee gets credit for the sales amount when the deal is closed.

 

Calculation:

Calculation is based on the following data available from closed deal.

Lease fees-This is the lease fees paid by the owner.

 

Commission rate for the leaseis negotiated on a deal-by-deal basis with the seller. This commission is the revenue to the company. This commission revenue is then split between the company and the payee for the role they have played.

 

Number of Deals viiiSplit Rate %

0 50%

6 and above5%

 

Manager Sales Override

This incentive pays overrideson saletransactions closed by payee’s subordinates’ agent. This commission is paid every week.

 

Credits:

Any deals that are sold byPayee’s subordinate agentsare eligible for this commission. Commissionable transactions are closed sales between sellerand buyerfor properties.Payee gets credit for the sales amountwhen the deal is closed.

Commercial SalesCommission

This incentive pays commissions on commercial sales transactions closed by payee.This commission is paid every week.

 

Credits:Any deals that are due to the Payee’s primary efforts are eligible for this commission. Commissionable transactions are closed sales between seller and buyer for commercial properties.Payee gets credit for the sales amountwhen thedeal is closed.Payee gets 50% credit for playing the listing agent role. Payee can also get the other 50% credit if they play the buying agent role.

 

Calculation:

Calculation is based on the following data available from closed deal.

Sales Amount-This is the total sales price for the property.

 

Commission rate for the saleis negotiated on a deal-by-deal basis with the seller. This commission is the revenue to the company. This commission revenue is then split between the company and the payeefor the role they have played.

 

Sales Price Split Rate%

0 1,000,00060%

1,000,001 and Above70%

 

Example:

Sale:#1

Sales Price:$1,100,000

Commission Rate:8%

Company Revenue:$88,000 ($1,100,000 x 8%)

 

Payee role:Listing Agent Only

Credit for role:50%

Earned Credit:$44,000($88,000 x 50%)

 

SplitRate:70%

Commission Amt:$30,800($44,000x 70%)

 

Residential Sales Commission

This incentive pays commissions on residential sales transactions closed by payee. This commission is paid every week.

 

Calculation:

Calculation is based on the following data available from closed deal.

Sales Amount-This is the total sales price for the property.

 

Commission rate for the sale is negotiated on a deal-by-deal basis with the seller. This commission is the revenue to the company. This commission revenue is then split between the company and the payee for the role they have played.

 

 

Number of Deals Split Rate %

0 50%

6 and above5%

Credits:

Any deals that are due to the Payee’s primary efforts are eligible for this commission. Commissionable transactions are closed sales between seller and buyer for residential properties.Payee gets credit for the sales amountwhen the deal is closed.Payee gets50% credit for playing the listing agent role. Payee can also get the other 50% credit if they play the buying agent role.

 

Calculation:

Calculation is based on the following data available from closed deal.

Sales Amount-This is the total sales price for the property.

 

Commission rate for the saleis negotiated on a deal-by-deal basis with the seller. This commission is the revenue to the company. This commission revenue is then split between the company and the payeefor the role they have played.

 

Number of Deals Split Rate %

1 60%

2 and Above70%

 

Example:

Sale:#2

Sales Price:$500,000

Commission Rate:6%

Company Revenue:$30,000 ($500,000 x 6%)

 

Number of Deals:2

Payee role:Listing Agent Only

Credit for role:50%

EarnedCredit:$15,000 ($30,000 x 50%)

 

Split Rate:70%

Commission Amt:$10,500 ($15,000 x 70%)

 

Lease Commission

This incentive pays commissions on residential and commercial lease transactions closed by payee. This commission is paid every week.

 

Credits:

Any deals that are due to the Payee’s primary efforts are eligible for this commission. Commissionable transactions are closed sales between owner and renter for residential or commercial units.Payee gets credit for the lease feeswhen the deal is closed. Payee gets 50% credit for playing the listing agent role. Payee can also get the other 50% credit if they play the buying agent role.

 

 

Calculation:

Calculation is based on the following data available from closed deal.

Lease Fees-This is the lease fees paid by the owner of the property.

 

Commission rate for the lease is negotiated on a deal-by-deal basis with the seller. This commission is the revenue to the company. This commission revenue is then split between the company and the payeefor the role they have played. Lease commission is due only on the move-in date, which is when the renter has moved in to the unit.

 

Split Rate% - 50%

 

Example:

Lease:#3

Lease fees:$2,400

Payee role:Listing Agent and Buying Agent

Credit for role:100%

Earned Credit:$2,400

 

Split Rate:50%

Commission Amt:$1,200($2,400x 50%)

 

Special Building Incentive

This incentive pays an additional amount on residential and commercial lease transactions for buildings represented by the company. This commission is paid every week.

Credits:

Any deals that are due to the Payee’s primary efforts are eligible for this commission. Commissionable transactions are closed sales betweentheowner and renter for residential or commercial units.

 

Calculation:

For every unit in the contracted building that is leased, payee gets a one-time incentive. Incentive is due only on the move-in date, which is when the renter has moved in to the unit.

 

Incentive - $250 per leased unit

Example:

Lease:#3

Lease fees:$2,400

Payee role:Listing Agent and Buying Agent

Credit for role:100%

Incentive Amt:$250

 

ix Expense Deductions

Payees’commissions will be adjusted by certain deductions every week. There will be some standard deductions as well as variabledeductions

 

Standard deductions are:

Desk Fees:$100/week

Insurance:$20/week

Variable deductions are:

Marketing expense:Variable

Materials:Variable

 

x Draw

Payee has a weekly draw. The weekly draw amount is $1,000.

Payee will be advanced the amount difference between commissions earned during the weekand the draw limit, if commissions earned is less than the draw limit.

If commissions earned is greater than the draw limit and there is a current draw balance owed to the Company, then the excess amount will be used to pay down the draw balance.

Draw recovery will continue until draw balance is reduced to zero.

xi Splits

Commissions can be split with other Payees, on a deal-by-deal basis with prior agreement from the company.

A spit can be made between one or more Payees playing the same role. In either case, a split percentage would apply indicating the payees’share based on involvement.

 

Termination of Employment

On voluntary or involuntary termination of Payee’s engagementwith the Company, commissions will be paid on transactions dated prior to the termination date only. Any amounts owed to the Payee will be according to federal and localregulations after withholding taxes and other dues. 

 

Other Terms

 

  • 1.Payee agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.

  • 2.In the case of any disagreement regarding sales credit, splits and commission calculations, company has the sole authority to decide the calculations and results.

  • 3.Payee shall not engage in any other employment during the term of this agreement. Company reserves the right to require Payee to terminate any such other employment at Company’s sole discretion.

  • 4.Any transaction entered into by the Payee during the period specified in this agreement is considered to be made on behalf of the Company and is the property of the Company.

  • 5.All transactions involving other firms or unapproved providers should be first approved by the Company.

  • 6.Payee shall be liable for all fees, including, but not limited to, Standard Fees, appraisals and credit reports ordered on applications he/she originates, if such fees are not paid by the customer. Any unpaid feeswill be deducted from any unpaid compensation otherwise due to the Payeeunder this agreement.

  • 7.The Company establishes Standard Fees for various services, and Payeewill require prior approval before changing any of the Standard Fees.

  • 8.Payee agrees to protect all confidential material including prospect data,transactions, and client information belonging to the Company and shall take all reasonable care in making sure that such confidential material is not disbursed to anyone outside the company.

  • 9.Payee shall read, understandand follow all compliance rules in operation from a Federal, state, local and Company level.

  • 10.Payee shall be responsible for acquiring all necessary education, licenses and certificates to legally practice the profession.

  • 11.Payee shall indemnify Company and hold harmless against any Loss or Damage incurred by the Company due to Payee’s gross negligence or misrepresentation during the duration of this agreement.

  • 12.Payee shall use the most ethical practices while engaging in any sales activity.

  • 13.This entire agreement shall be governed by the laws of the State of ___________.

 

 

 

Company                               Payee

 

_______________________ __________________________

By                                           By

_______________________ __________________________

Name                                      Name

_______________________ __________________________

Title                                         Title

_______________________ __________________________

Date                                         Date

 

 

iAny part of this agreement can be changed or overridden based on your needs

iiThis date will give us information as to when this agreement was written and distinguish it from similar other agreements.

iiiFill out the company name here

ivFill out the payee's full name here

vEnter thestart and end date for the sales commission plan effective period. Most companies use the calendar or fiscal year start and end date for these values.Some companies may not have an end date specified.

viAlternatively you can remove this section or rephrase it such as Base salary is specified in a separate employment agreement.

viiTargeted sales compensation for the full year

viiiPercentage can be changed according to the agreement of the parties

ixYou can changed or alter the expenses based on the companiesneeds

xThe weekly draw amount can be changed or altered accordingly

xiThis agreement can either be changed or altered or completely removed if not necessary