Flat Price Broker

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Affiliate application for referrals (Seller)

  1. Parties –

This agreement is made between William C. Sturman, dba Flat Price Broker, with a principal place of business in Rockport, Texas and _________________________________________ (Affiliate Broker), with a principal place of business at _____________________________________________. The affiliate broker is a licensed TREC broker in good standing whose license number is _____________________.he affiliate application for referrals is easy.

  1. Services to be performed –

Referred broker agrees to perform all services for listing, marketing, negotiating, and selling the property located at ______(per referral)_____ and the owner/seller ________________(per referral)_______________________ following instructions from the seller and performing (at a minimum) the tasks required to properly market and sell the referenced property and outlining the specific services to be provided (sample attached).

  1. Compensation –

In consideration of the referral, the Affiliate Broker agrees to pay William C. Sturman, TREC license #0188288, a portion of the listing fee owed to the Affiliate Broker in connection with a sale of the above-referenced property during the agreed listing period. The referral fee is as follows:

    • 10% of the fee charged and collected by the Affiliate Broker for performing the listing services upon closing and funding. Any supplemental charges made separately for additional services will be retained by the Affiliate Broker. No portion of any commission amount paid to a buyer’s agent is owed, even if the Affiliate Broker serves as an intermediary or facilitator in the transaction, as long as charges are balanced.

Affiliate Broker acknowledges that no other compensation is payable to William C. Sturman and that future referrals to different clients may depend on the satisfaction of the Seller with the services provided by the Affiliate Broker. None of the Affiliate Broker’s compensation or referral fee is based on the number of hours worked by the Affiliate Broker in performance of the services and tasks agreed in their listing agreement. The affiliate application for referrals will bring you more clients.

  1. Expenses –

The Affiliate Broker is responsible for all expenses incurred in performing services under this referral agreement. This includes license fees, memberships, and dues, automobile and other travel expenses; meals and entertainment; insurance premiums including transactional E&O coverage, and all salaries, expenses, and other compensation paid to employees or contract personnel the Affiliate Broker may hire to complete tasks or services under this Agreement. Flat Price Broker does not set or control commissions or fees an affiliate broker may charge any client, and serves only as a referring broker.

  1. Materials –

The Affiliate Broker will furnish all materials and equipment needed to provide the services required by the listing agreement. The flat price broker’s affiliate application for referrals has all the information you need to start receiving referrals.

  1. Term of Agreement –

General – 

The general referral agreement will remain in effect indefinately, but may be terminated at any time by either party with notification. There are no charges incurred by the affiliate broker relationship, and affiliates are welcome to use the banner and marketing benefits of Flat Price Texas or Flat Price Brokers as long as the relationship remains in good standing.

Specific referral agreements –

This Agreement will become effective when signed by both parties and will terminate on the earliest of:

    1. When Affiliate Broker completes the services required and the property closes.
    2. The date of expiration of the listing agreement including any listing extensions.
    3. The date a party terminates the Agreement as provided by:
      1. Written notification of termination by the seller of the listed property.
      2. Written notification by either party to this Agreement that additional services will not be needed.

Any termination compensation owed to or from Affiliate Broker will be by separate agreement.

  1. Terminating the General Referral Agreement –

With reasonable cause, either party may terminate this Agreement effective immediately by giving written notice for cause of termination.

Reasonable cause includes:

    1. A material violation of this Agreement, or
    2. Non-payment of earned compensation after 20 days’ written demand for payment from Flat Price Broker. Any dispute to be mediated amicably.
    3. Any termination of the listing agreement under Section 6 (3) of this agreement.

  1. Independent Contractor Status –

The Affiliate Broker is an independent contractor and licensed Broker, not an employee of Flat Price Broker or William C. Sturman. The Affiliate Broker’s employees or contract personnel are not employed by Flat Price Broker.

Affiliate Broker and Flat Price Broker agree to the following rights consistent with any independent contractor relationship:

    1. The Affiliate Broker has the right to perform services for others during the term of this Agreement.
    2. Affiliate Broker will have no obligation to perform any services other than those described in the referred client’s listing agreement.
    3. Affiliate Broker does not have to pursue or report on leads furnished by Flat Price Broker except to the extent established by the listing obligations as provided and:
      1. Is not required to attend sales meetings organized by Flat Price Broker.
      2. Does not have to obtain Flat Price Broker’s approval to upgrade listing agreements when requested by the client.
    • Will adopt and carry out Affiliate Broker’s own legal marketing strategy.
    1. Subject to any restrictions on Affiliate Broker’s performance contained in this referral agreement, Affiliate Broker has the right to perform the services required at any location or time.
    2. Affiliate Broker has the right to hire assistants as subcontractors or to use employees in lawful compliance to provide services required.
    3. Affiliate Broker or Affiliate Broker’s employees or contract personnel will perform the services required by this Agreement; Flat Price Broker will not hire, supervise, or pay any assistants to assist the Affiliate Broker.
    4. Neither Affiliate Broker nor Affiliate Broker’s employees or contract personnel will receive any training from Flat Price Broker in the skills necessary to perform the services required by this Agreement.

 

Local, State, and Federal Taxes –

Affiliate Broker will pay all income taxes and FICA (Social security and Medicaid taxes) incurred while performing services under this Agreement.

The payments specified in the Compensation and Expense clauses above do not include taxes.  If Flat Price Broker is required to pay any federal, state, or local sales, use, property, or value added taxes based on the services provided under this Agreement, the taxes will be separately billed and paid by Flat Price Broker and is responsible for paying any interest or penalties incurred due to late payment or nonpayment of taxes owed. The affiliate application for referrals gives full information about tax allocations.

  1. Exclusive Agreement –

This Agreement (including attached exhibits) is the entire Agreement between Affiliate Broker and Flat Price Broker.

  1. Confidentiality –

During the term of this agreement and for 90 days afterwards, Affiliate Broker will use reasonable care to prevent the unauthorized use or dissemination of Flat Price Broker’s confidential information. Reasonable care means at least the same degree of care the Affiliate Broker uses to protect their own confidential information from unauthorized disclosure.

Confidential information is limited to information clearly marked as confidential or disclosed orally and summarized and identified as confidential in writing delivered to Affiliated Broker within 15 days of disclosure.

Confidential information disclosed, developed, or obtained from the owner or property while performing the services required by this Agreement are always considered confidential, and proprietary information belonging to Flat Price Broker including this Agreement and attached exhibits will not be revealed to anyone outside the Flat Price Broker agency referral network.

Of course, confidential information does not include information that:

    • the Affiliate Broker knew before Flat Price Broker disclosed it.
    • is or becomes public knowledge through no fault of the Affiliate Broker.
    • Affiliate Broker obtains from sources other than Flat Price Broker who owe no duty of confidentiality to Flat Price Broker, or
    • Affiliate Broker independently develops.

  1. Mediation and Arbitration –

If a dispute arises under or relating to this Agreement, the parties will try in good faith to settle it through mediation conducted by a mediator to be mutually selected. The parties will share the costs of the mediator equally. Each party will cooperate fully and fairly with the mediator and will attempt to reach a mutually satisfactory compromise to the dispute. If the dispute is not resolved within 30 days after it is referred to the mediator, it may be settled by binding arbitration by an arbitrator that is mutually selected. Judgment on the arbitration award may be entered in any court that has jurisdiction over the matter.

  1. Attorney Fees –

If any dispute requires the involvement of an attorney, the prevailing party shall have the right to collect from the other party its reasonable costs and disbursements and attorney fees incurred in enforcing this Agreement.

  1. Notices –

All notices and other communications in connection with this Agreement will be in writing and will be considered given as follows:

    • when delivered personally to the recipient as stated on the Agreement;
    • three days after being posted and receipted by the United States mail, with postage prepaid to the recipient’s address as stated on this Agreement; or
    • when sent by fax or electronic mail, such notice is effective upon receipt provided recipient delivers a written confirmation of the receipt. Otherwise, a duplicate copy of the notice must promptly be sent by first class mail, return receipt requested. 

  1. No Partnership –

This Agreement does not create a partnership. Affiliate Broker does not have authority to enter into contracts, other than upgrading the contract or providing additional services relating to the specific property assigned, on the behalf of Flat Price Broker.

  1. Governing Law –

    This Agreement is governed by and construed in accordance with the laws of the state of Texas.

MY SIGNATURE BELOW INDICATES THAT I HAVE READ AND UNDERSTOOD THIS AGREEMENT.

 

Client:  Flat Price Broker                                       Affiliate Broker: __________________________

Title: ________________________________                      Agency Name:____________________________

Signature: ____________________________                    Signature: _______________________________

Date:  ___________________                                        Date:  ___________________