Tony and Suzanne Marriott's Phoenix Arizona Real Estate Blog

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To play well together you both must know the rules! Part 10 of 10

 

Here is a link back to Part 9 in case you missed it! 

This is the final section of the Agreement.  It covers the termination process, and has a clause designed to protect the team against "solo agents" in "Buyer Associates clothing".  Having encountered situations last year where an agent would join the team, take an incredible amount of my time and the support staff's time, only for them to depart back to a solo career armed with the training we had provided, we needed a mechanism for recovering our investment in time and effort.  Hence the grid and the time frames.  The amounts we use are not punitive - they are reasonable compensation for services rendered by us to the Buyer Associate, and this portion of the agreement is covered in great detail prior to signing.  So far, we have not "lost" a recruit due to this clause - but we're watching it closely.

The agreement is signed by me, the Buyer Associate AND the Designated Broker.  The Broker's signature makes the standing referral agreement (mentioned in an earlier section) valid and binding.

Article 11

This agreement may be amended by Rainmaker Team Leaders should Keller Williams International or Keller Williams Realty Professional Partners make changes that impact the Rainmaker Team Leaders or the Buyer Associate.

Buyer Associate understands that this Buyer Associate Agreement differs from Buyer Associate Agreements offered by other Rainmaker Teams and from Individual Agent Agreements offered by Keller Williams Realty Professional Partners, and agrees to that difference.

Phoenix Arizona Real Estate

Either party may terminate this agreement and the relationship created hereby hereto, with or without cause, at any time.  Buyer Associate affirms that they will be bound by the terms of the agreement for a period of three (3) years following the date of termination of this agreement.

Upon termination of this agreement, Rainmaker Team Leaders or assignee shall handle all negotiations, customers/clients, and/or services commenced by Buyer Associate, during the term of this agreement unless superseded in writing at time of termination. 

It is agreed and understood that any tangible items provided as tools are the possession of Rainmaker Team Leaders, unless otherwise agreed to in writing.  These items may include computers, written materials, preprinted forms, signs, etc.  In the event of termination, these items shall be returned immediately to Rainmaker Team Leaders in the condition originally obtained, excluding normal wear and tear. 

Phoenix Arizona Real Estate

If the Buyer Associate leaves the team during the first 3 years of this agreement, either voluntarily or as a result of failing to comply with a specific provision of this agreement, it is agreed and understood that liquidated damages to compensate The Marriott Group for their investment in training, coaching and advice will be due and collected from the former Buyer Associate as "Referral Fees" from future transactions by the former Buyer Associate with the former Buyer Associate's own sphere of influence and/or by their own marketing and prospecting efforts, for the remainder of the 3 year period following the date the Buyer Associate joined the The Marriott Group, according to the following schedule:

If the former Buyer Associate leaves the team:

The "Referral Fee" for the remainder of the 3 year period shall be:

Within the first 6 months of joining the team

X%                              up to a maximum of $xx,xxx

Between Month 7 and Month 12

X%                              up to a maximum of $xx,xxx

Between Month 13 and Month 24

X%                              up to a maximum of $xx,xxx

Between Month 25 and Month 36

X%                              up to a maximum of $xx,xxx

Buyer Associate commission split will be paid only if Buyer Associate is still working under this agreement at the time of close of escrow of transaction(s).  A Buyer Associate no longer under this agreement at time of close of escrow will not receive any compensation unless superseded in writing at time of termination of this agreement.

Anthony R. "Tony" Marriott - Rainmaker Team Leader                               Date

>- Buyer Associate                                              Date

Keller Williams Realty Professional Partners Broker                                  Date

 

About the Authors - Updated 2018

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with the BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!

Tony Marriott - Chief Operating Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Learning Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
BVO Luxury Group
Keller Williams Arizona Realty

Comments

Tony - A truly excellent series on this agreement which I know went through many drafts and revisions, edits from several brokers, and has passed the legal counsel "test"!  Wonder if anyone else out there has some ideas to contribute that would enhance it even more?
Posted by Suzanne Marriott, Associate Broker, CLHMS, e-PRO (Keller Williams Arizona Realty) over 12 years ago

Great series Tony!  Thanks for sharing it with all of us.

Welcome back, hope you enjoyed your "vacation".

Posted by Jay Thompson (Zillow) over 12 years ago
Tony -  Great Blog !!
Posted by Lauren Corna, Broker (Archway Realty, LLC) over 12 years ago
Tony -  Great Blog !!
Posted by Lauren Corna, Broker (Archway Realty, LLC) over 12 years ago
Jay - Thanks for the comment and yes - had a great time - just a few laptop withdrawals!  See you on Jan 5!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 12 years ago
Lauren - Thanks for the comment - hope you found it helpful!  Tony
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 12 years ago

Hi Tony,

I just read all 10 parts of this series from the beginning.  Excellent information!

I have been working on building a team for awhile now, so this couldn't have come at a better time.

Thanks for sharing.

Matt Pellerin
PhoenixHomes.com

Posted by Matthew Pellerin, Phoenix Homes Team (Realty Executives - PhoenixHomes.com) over 12 years ago
Matt - Glad to have been of help - let me know if you notice anything absent that you would suggest be included.  Thanks,  Tony 
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 12 years ago
Tony- Of course, I find this series on 10 of 10. Is there somewhere I can read this from start to finish as one document?  I really like what I have read in section 10. 
Posted by Debi Braulik, Selling Maple Valley to Fife WA Homes For Sale (www.roundrealestate.com) over 12 years ago
Thank you for the series is ther another series in the works?
Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) over 12 years ago
Debi - There are links in each of the sections to the previous and next sections.
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 12 years ago
Jennifer - Always something in the works - happy that you found this helpful!  Tony
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 12 years ago
Wow you guys are tough.  I worked for two fortune 500 companies and they only had me sign for 1 year after leaving.
Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 12 years ago

I'm curious what your turnover rate has been.

And have you had an agent that has been a superstar?  What adjustments did you make to keep them on the team?

Randy Worcester
Keller Williams
http://FortCampbellHomePros.com

 

Posted by Randy Worcester, Broker/Owner, CRS, ABR, GRI, MRP, MBA (Weichert, Relators - Home Pros) over 12 years ago
Randy (Prothero) - Residential Real Estate clients don't do business as frequently as some of our clients did back in the corporate world!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 12 years ago

Randy (Worcester) - From October 2004 through December 2005 zero turnover.  Ooops - I forgot one (bad hire) who joined in May and who we had difficulty with almost immediately - total lack of urgency.  They "left" in September.

December 2005 a Buyer Associate who had committed to - but never did - get Buyer Broker Agreements signed opted to leave rather than overcome that hurdle.  We had provided 16 transactions to her for a total GCI of $74K - not bad for first year in the business!

January 2006 we experienced our first "solo agent" in "Buyer Associate's Clothing" - they joined - stayed for 3 weeks - took up about 80 hours of my time - then left and went solo. 

At that point we put a freeze on hiring - and another who had been with us since March 2005 decided they wanted to do Commercial - moved to a Commercial team - did zero (apart from listing a property for one of our Past Clients) - and is now drifting loose off the team they went to.  A couple of others decided the ups and downs of sales was not for them and returned to the world of being an employee. 

Despite the hiring freeze I received a plea from our recruiting Broker to hire another agent who had long term experience.  They quickly found they couldn't deal effectively with web based and IVR leads and left after about a month.

One more had to leave to take care of an ailing parent.

Everyone else voted unanimously to move to Keller Williams in August - which we did - and have since added to the team with more interviews scheduled next week.

Everyone has the same agreement.  Not interested in changing the deal for individuals - regardless of production.  The sliding scales based on production take care of that.  To avoid any thoughts Sherman may have - I xx'd out the pecentages throughout the document - however - Buyer Associates can raise the bar up to a 90/10 split - there will never be 100% as the overhead for the services the team provides has to be covered.

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 12 years ago

Tony:  Love the series on team building and what the team is about.  Looks like you got the "Terminator" as one of your captions.  He's recovering from a femur fracture as we speak.  He won't be available to enforce one of those termination clauses for a while.   I'll be back in town after I finish up some last minute duties, if you know what I mean.

Fire Duties

Your fellow team mate.....Ken

Posted by Ken Spencer, for Verrado, Buckeye, Sundance (Serendra Realty Group ) over 12 years ago
Good information, Tony ... I definitely will have to read through it again when it's not a Friday night an hour after Rock Bottom's happy hour has ended. I get the gist but details are bluuuuurrrrrrrrrrrrrrry.
Posted by Jonathan Dalton (Realty ONE Group) over 12 years ago
Jonathan - Thanks for the comment - hope things aren't still bluuurrry this morning!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 12 years ago
Tony - I like that you have a focussed plan and you stick to it.  That makes the chances of success greater and you minimize bad fit agents from joining.  They enter knowing exactly what to expect.  If it is not their cup of tea they will know that up front.  You have an extremely professional approach.
Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 12 years ago
Randy - Thanks for the comment - we learned to fine tune this agreement by real life experience!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 12 years ago
Looks like you have an overall vote of confidence from some of the respected members of the Active Rain community - great job hubby!
Posted by Suzanne Marriott, Associate Broker, CLHMS, e-PRO (Keller Williams Arizona Realty) over 12 years ago

Tony,  Good info.  I have been following your topics and you get a thumbs up from me.  Sam Miller

Posted by Sam Miller, Knox County Ohio Real Estate Specialist (RE/MAX Stars Realty) about 12 years ago
Sam - Thanks for the appreciation - it really means a lot to me.  Tony
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
I can't thank you enough for sharing this insightful series.
Posted by Christina Ethridge (The North Idaho Dream Team powered by SKE Realty Group) about 12 years ago
Christina - You are most welcome!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Outstanding, Outstanding, Outstanding! Thanks Tony!
Posted by Jaclyn Erwin, ABR,SFR, REALTOR®/BROKER-OWNER Charlotte NC. (Jackson Erwin Realty, Inc.) about 12 years ago
Thanks for the comment Jaclyn!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago

 Tony,

I'm really learning from your post. I have just formed a team---Keller Williams style, and I am in the initial growing phase. I am doing my best to be disciplined and to gain all the knowledge necessary to help my team as it grows. I am highly appreciative for you taking out the time to share your Buyer Associate model and for providing a open-discussion to us ARainers better understand. Thanks. I do not have buyer agents yet, but I will be prepared when that time comes.

Posted by Jaclyn Erwin, ABR,SFR, REALTOR®/BROKER-OWNER Charlotte NC. (Jackson Erwin Realty, Inc.) about 12 years ago

Jaclyn, Happy it was of help to you!  Tony

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Thank you Tony ! I have learned alot. Do you have a contract you would be willing to post
Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) about 12 years ago

Hi Missy,

The italicized text in the 10 parts makes up the contract.  Not sure what you're requesting - please let me know.

Thanks!

Tony

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Thanks Tony, I cut and paste it all in Word and I will make it my own. You are so generous to share with us.
Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) about 12 years ago
Missy - no problem - that's what we're all here for!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Tony, I did use your contract yesterday for a buyer agent I am considering hiring. I just did a find and replace from Word and took out stuff that didn't apply. Thank you so much ! I know it took alot of time to come up with that and post so thank you, thank you, thank you. I have been looking for a good contract for a while.
Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) about 12 years ago
Missy - Glad to hear it proved useful!  Congratulations on the new Buyer Agent!  BTW - I lived in Ann Arbor / Ypsi area in the early 90's.  How's the market there these days?
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Terrible, over 42 months of inventory in certain price points. So much inventory with Big 3 not moving people in and all the downsizing. Pfizer leaving Ann Arbor and giving their employees up to 100K in loss on sale has brought home prices down.
Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) about 12 years ago
Wow - I knew things must be getting tough - but no idea that tough.  My parents managed to sell their home by the Detroit Golf Club in Palmer Park in 30 days - but had to go 10% under other actives to do so.  Luckily they bought in 1968 so had plenty of room to negotiate.  Not a pretty picture these days.
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago

Tony,

I just read your Buyeir Associate IC agreement series.  Nice work

Kathy Howe

Posted by Kathy Howe (how2educate LLC / how2arizona real estate) almost 12 years ago
Kathy - Thanks for taking the time to read it - and thanks for the feedback!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) almost 12 years ago

Great post. Thanks for sharing. Maybe we should make this required reading.

 

Thanks again.

 

Jim in NC

Posted by Jim Fischetti (The Fischetti Group/Keller Williams) about 11 years ago

Tony -

Great job!!

Posted by Giuseppe "Joe" Pistone (JWC Florida Realty) over 10 years ago

WOW Tony!  You really put a lot of time and effort into this series.  You shared some great ideas and I really appreciate it.

Posted by Cheryl Powell - The Powell Team, Concord,Harrisburg & Charlotte NC Area Real Estate (RE/MAX Executive - The Powell Team) over 10 years ago

Thank you for the input, I realize the value of an agreement, both sides know the ground rules and teh costs.

Posted by Andrew Monaghan, CRS, GRI, EPro Associate Broker (The Monaghan Group) over 10 years ago

Tony, sorry I missed the whole series.  Enjoyed this blog.  Thanks for sharing.

Posted by Team Honeycutt (Allen Tate) over 10 years ago

Great series---It is alot to think about however it is something all teams should do. 

Posted by Team Honeycutt (Allen Tate) over 10 years ago

This is a great blog, Tony. You obviously put a lot of time and thought into it. Thanks!

Posted by Cheryl Powell - The Powell Team, Concord,Harrisburg & Charlotte NC Area Real Estate (RE/MAX Executive - The Powell Team) almost 10 years ago

Tony,

How did I just find you on #10...

looks like I need to go back and review a few things..

thanks for the informative info.....

Posted by Sheila Moran, SanAntonioSheila.com, RE/MAX Access, 210-32 (RE/MAX Access (Garden Ridge, San Antonio, New Braunfels)) almost 10 years ago

Awesome...Awesome...& Awesome!!

Posted by Stephanie Arnett, SRS, IMSD, Broker Associate, REALTOR (RE/MAX Partners~ Starkville, MS) almost 9 years ago

Am going back through the whole series again.

The 3 year referral fee I have never seen. How's the enforcement rate with that?

Thanks for a very detailed synposis of the whole issue.

Margaret

Posted by Team Honeycutt (Allen Tate) almost 9 years ago

Work on the plan, and then work the plan. You've given everyone a concise, thorough road map.

Thanks for sharing.

Margaret

Posted by Team Honeycutt (Allen Tate) over 8 years ago

I am new to the team here so this article was very valuable!

Posted by Team Honeycutt (Allen Tate) about 8 years ago

Jim Fischetti I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!   

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Giuseppe "Joe" Pistone I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!   

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Cheryl Powell - The Powell Team I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!   

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Sheila Moran I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!   

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Stephanie Arnett I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!   

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Team Honeycutt I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!   

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - try this one - Peacocks and Pickles for Christmas 2015!  Wishing you a prosperous and Happy New Year!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) almost 3 years ago

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