Terms and Conditions(Required) Independent Contractor Agreement
THIS AGREEMENT ("ICA") is entered into by and between ("Agent") and Household Real Estate, LLC, a licensed real estate brokerage company in Agent's state(s) of licensure ("HRE"). The Effective Date of this ICA is the date it is electronically signed by the last party.
PARTIES
The terms "Party" or "Parties" herein refer to HRE and Agent collectively and each individually.
BACKGROUND
A. Agent is a licensed real estate professional in their state(s) of licensure.
B. HRE operates as a cloud-based real estate brokerage in Agent's state(s) of licensure.
C. The Parties mutually desire Agent's affiliation with HRE as a real estate licensee in Agent's state(s) of licensure, governed by the terms in this ICA.
AGREEMENT
In consideration of the above recitals and valuable consideration, the Parties agree as follows:
Real Estate Brokerage Services. Agent will provide real estate brokerage services ("Services") for HRE's clients during the Term. These services encompass activities typically performed by real estate licensees in Agent's state(s) of licensure and as outlined in HRE's Policies or as required by HRE.
Independent Contractor Relationship.
a. Not an Employee. This ICA establishes an independent contractor relationship, designating Agent as the service provider and HRE as the service recipient. Agent's role is that of a "qualified real estate agent" per Section 3508 of the Internal Revenue Code, based on the license held (e.g., salesperson, associate broker, broker, qualifying broker, principal broker, etc.). The Parties disclaim any joint venture, partnership, employer-employee relationship, or similar association. Agent is not considered an employee of HRE and is not entitled to employee benefits. Agent is responsible for taxes, insurance contributions, and workers' compensation. Agent has the flexibility to manage their time, workload, and business development without mandatory office hours or adherence to sales quotas. Agent expressly waives any claims of an employer/employee relationship between HRE and Agent.
b. Agent Expenses. Unless explicitly stated otherwise in this ICA or HRE's Policies, Agent is responsible for covering all costs associated with being a real estate licensee. These costs include, but are not limited to, REALTOR® dues, multiple listing service ("MLS") dues, cell phone expenses, business card expenses, sign expenses, sign-post expenses, advertising expenses, personal branding expenses, continuing education expenses, licensing expenses, printing, copying, and faxing expenses, digital camera, computer(s), and related hardware or software expenses, printer/scanner/fax equipment expenses, high-speed internet expenses, automobile expenses, auto insurance fees, individual errors and omissions insurance premiums and deductibles (where required by applicable law), any other personal or business insurance coverage premiums and deductibles deemed prudent or necessary by Agent for the operation of their business, as well as local, state, federal, and municipal taxes of any kind, and any government, regulatory, or agency licensure and compliance fees and expenses.
c. Workers’ Compensation Insurance Coverage. Unless otherwise mandated by applicable law, Agent, as an independent contractor, shall obtain workers’ compensation insurance coverage for themselves and any employees in amounts deemed appropriate by Agent, but not less than the minimum coverage required by applicable law. The workers’ compensation insurance policy shall name Household Real Estate, LLC, and its subsidiaries, successors, and assigns (collectively referred to as the “HRE Additional Insureds”), as additional insureds. Agent must also secure a "waiver of subrogation" endorsement from the workers’ compensation insurer in favor of the HRE Additional Insureds. Upon written request, Agent shall provide evidence of the aforementioned insurance coverage for any workers’ compensation insurance policy obtained on their behalf.
Agency Relationships. All real estate brokerage relationships for any transactions, regardless of agency status, exist solely between HRE and the client (or customer) and not between Agent and the client (or customer). Agent provides real estate services on behalf of HRE, and all listings taken by Agent in connection with HRE’s business remain the separate and exclusive property of HRE. Throughout the Term, Agent shall diligently carry out their duties on behalf of HRE with the skill, care, and diligence expected of a licensed real estate professional in their state(s) of licensure.
Compensation; HRE Fees. Agent shall receive compensation based on the commission split outlined below and further described in the Household Real Estate, LLC. U.S. Policies and Procedures ("HRE P&Ps") available at www.householdrealestate.com/login. Additionally, eligible HRE real estate licensees can participate in the Agent Phantom Shares Program and the Agent Growth Incentive Program, both administered under the 2015 Equity Incentive Plan ("Plan"). For details and participation information, interested Agents should visit the HRE Agent Shareholder Hub at www.householdrealestate.com employee login. Agent shall pay HRE the fees described as "HRE Fees" under the HRE P&Ps, in the amounts specified. Unless otherwise stated in the HRE P&Ps, HRE Fees shall be paid according to Agent’s preferred payment method on file with HRE, either through a draw against Agent’s checking account or by charging Agent’s debit or credit card on file with HRE. Agent is automatically enrolled in HRE’s Sustainable Revenue Share Plan, subject to the terms in the HRE P&Ps.
a. Commission Split. Agent is entitled to a commission on various transactions, including purchase transactions, sales transactions, rental/lease transactions, broker price opinions ("BPOs"), and referrals (collectively referred to as "Transactions"). The commission split is as follows: 100% of the Gross Commission Income (income retained by HRE after referrals, but prior to commission split) goes to Agent ("Contractor Dollar"), and $300 goes to HRE ("Company Dollar") on all Transactions closed by the Agent. In the case of Transactions subject to state or local taxes, the commission split will be calculated after deducting the applicable taxes. We include E & O insurance in our straightforward transaction fee, for transactions above $1,500,000 in sales price agents will pay an additional $25.00 E&O fee per $100,000 price increment over $1,500,000. Commercial transactions are done on a 90% Agent & 10% Company split. Household charges a straightforward $100 transaction fee for each lease transaction.
b. Onboard Date; Anniversary Date. The Agent's onboard date ("Onboard Date") is the later of (a) the Agent's "Join Date" (the date HRE verifies the Agent's email address and the Agent becomes active in Enterprise) or (b) the date on which the Agent's real estate license is transferred to HRE. The Agent's anniversary date ("Anniversary Date") is the first day of the calendar month following the Agent's Onboard Date with HRE. For example, if the Agent's Onboard Date is January 18, 2022, the Anniversary Date will be February 1, 2022.
c. Company Dollar Cap; Capping Period; Cap Reset Date; and Anniversary Year. The Agent's "Capping Period" is a consecutive twelve-month period during which Company Dollar collected on the Agent's Transactions accrues towards the Company Dollar Cap. The "Company Dollar Cap" is the threshold at which, once reached, HRE no longer collects the Company Dollar portion of the commission split. When the amount of Company Dollar received from the Agent's closed Transactions reaches $0.00 (referred to as a "Full Cap") within the Capping Period, the Agent enters a "Capped Status" until the expiration of the then-current Capping Period. The "Cap Reset Date" is the date each new Capping Period begins, and the Company Dollar accrued towards the Company Dollar Cap resets to zero. The Cap Reset Date aligns with the Agent's Anniversary Date, unless expressly agreed otherwise in a separate written addendum to this ICA. The Agent's anniversary year ("Anniversary Year") begins on the Anniversary Date and ends the day before the next Anniversary Date. Continuing the example, if the Onboard Date is January 18, 2022, the Anniversary Year runs from February 1, 2022, through January 31, 2023, and continues for the same period each year thereafter. Unless expressly agreed otherwise, the Agent's Capping Period overlaps with the Anniversary Year.
Term. This ICA remains valid until one of the Parties terminates it, as outlined in Section 6 below.
Termination. Either Party may terminate this ICA for any reason. The termination date ("Offboard Date") is determined as follows: (i) the date HRE's termination notice is delivered (if HRE terminates); (ii) the date the Agent provides a termination notice to HRE (if the Agent terminates); or (iii) the date HRE is made aware that the Agent has terminated their relationship (if the Agent fails to notify HRE). After the Offboard Date, the Agent must cease using any HRE sales materials bearing HRE's name, logos, registered trademarks, or inscription.
a. Continued Billing When Agent Terminates. Despite termination, if the Agent, as the terminating party, fails to provide appropriate advance notice to HRE, billing may continue for a limited period following the Agent's Offboard Date. This acknowledgment recognizes the complexity of HRE's billing systems and the extensive network of real estate agents served worldwide.
b. To Stop Continued Billing. To cease continued billing as close to the Agent's Offboard Date as possible (when the Agent initiates termination), the Agent should provide HRE with at least thirty (30) days' advance written notice of their intent to terminate. This notice is considered delivered to and received by HRE upon the Agent's completion and submission of the HRE Agent Offboard Notice online form (the "Offboard Notice"), available at www.householdrealestate.com/offboardnotice and in the HRE P&Ps. Upon electronic submission of the Offboard Notice, the Agent will receive an automated email response acknowledging HRE's receipt of the Offboard Notice ("Offboard Acknowledgment"). This acknowledgment is sent to the email address provided by the Agent on the Offboard Notice. It is advisable for the Agent to retain the Offboard Acknowledgment in case of any dispute regarding the submission or timing of the Offboard Notice.
c. Agent Payment Obligations After Termination. In the event of termination, all prepaid fees and dues are non-refundable. Any billable items invoiced to the Agent before the Offboard Date remain due and payable, and HRE may bill the Agent for such items as outlined in this ICA.
HRE’s Policies and Procedures. In addition to the terms of this ICA, the Agent must adhere to all policies and procedures established by HRE, including (a) the HRE P&Ps, (b) HRE’s state-specific policies and procedures in effect in the state(s) of the Agent’s licensure ("State P&Ps"), (c) any additional HRE policies and procedures, whether referenced or hyperlinked in the HRE P&Ps or any State P&Ps ("Additional P&Ps"), and (d) any revisions to the foregoing. These collectively constitute "HRE’s Policies." As an integral part of this ICA, revisions to HRE’s Policies shall adhere to Section 14 below. HRE’s Policies, including any revisions, are expressly incorporated into this Agreement by reference and constitute a part of this Agreement as if fully set forth herein.
8. Agent’s Representations and Warranties to HRE. The Agent represents and warrants to HRE that the statements in this Section 8 are or will be true and correct as of the Onboard Date (distinct from the Effective Date) and shall remain accurate throughout the Term:
a. Agent's License Information.
Agent is duly licensed as a real estate licensee in the following state(s), with the corresponding license number(s):
**PRIMARY STATE:**
- License Number:
If Agent is licensed and affiliated with HRE in more than one state, no additional ICA is required. In such an event, one HRE authorized representative from each state in which Agent is licensed is to sign this ICA on behalf of HRE.
b. License Maintenance.
Agent has and shall maintain all licenses, permissions, authorizations, consents, and permits required to lawfully fulfill obligations under this ICA at Agent's expense.
c. Qualifications and Agreements.
Agent possesses the necessary skill, experience, and qualifications to perform the Services.
Agent is not restricted by any agreement, order, or restriction preventing the fulfillment of duties under this ICA.
Agent has the legal authority to bind themselves to this ICA and perform all Services under it.
d. Compliance.
Agent is in compliance with HRE’s Policies, all applicable laws, and regulations.
Agent is either not the subject of any legal proceeding, judgment, conviction, or disciplinary action or has disclosed all relevant facts and documentation to Agent’s Designated Managing Broker or Managing Broker(s).
e. ICA Understanding.
Agent has reviewed and agrees to abide by HRE’s Policies.
Agent has had the opportunity to seek legal advice before entering into this ICA.
f. Reliance and Termination Acknowledgment.
Agent understands that HRE relies on the accuracy and competence of Agent’s Services and acknowledges potential financial loss upon termination of this ICA.
Agent’s Additional Covenants to HRE.
a. Licensed Activities.
Agent will only perform licensed real estate brokerage activities on behalf of HRE in states where Agent's real estate license is affiliated with HRE and active.
b. Notification and Cooperation.
Agent shall immediately notify Agent’s Designated Managing Broker and Managing Broker(s) of any Civil or Administrative Action and cooperate in the defense.
c. Enterprise Information.
Agent will enter and maintain accurate personal and emergency contact information in the HRE Enterprise system throughout the Term.
d. Text Messaging Consent.
Agent consents to receiving text messages from HRE for supervision, communication, and lead routing purposes, accepting responsibility for applicable message and data rates.
e. Sharing of Personal Information.
Agent consents to HRE using and sharing personal information as described in the Household Real Estate, LLC. Privacy Policy and Data Processing Agreement, agreeing to be bound by the Privacy Policy.
f. Affiliate with a Competitor.
Agent shall not be affiliated with a competitor to HRE during the Term, as detailed in HRE’s P&Ps.
g. Cyber Liability Insurance.
Agent is encouraged to obtain cyber liability insurance to cover data breaches and wire fraud related to licensed activities.
h. Automobile Insurance.
Agent shall maintain automobile insurance coverage with specified minimum liability limits and provide proof to HRE upon request.
Errors and Omissions Coverage; Legal Representation Provided; HRE’s Settlement Authority.
a. Errors and Omissions Coverage.
HRE carries E&O insurance, but Agent agrees to indemnify HRE for claims related to Professional Services. State-specific addendums may be required for coverage in certain states.
b. Legal Expense Reimbursement; Offset.
HRE may seek reimbursement from Agent for legal fees and costs, even if the matter is covered by insurance. Agent must reimburse within 30 days or HRE may offset from commissions.
c. Legal Representation Provided.
HRE will provide legal counsel at no cost to Agent if conditions are met. If conditions are not met, Agent must retain their own legal counsel at their expense.
d. HRE’s Settlement Authority.
HRE has sole discretion and final authority to decide on settlements in Civil or Administrative Actions. Agent’s refusal to abide may be considered a material breach.
Indemnification.
a. Indemnification by Agent.
Agent agrees to indemnify, defend, and hold harmless HRE and Indemnitees from various claims and Losses, without monetary limitation. Agent does not control the defense.
b. Insurance Remedies.
HRE may seek indemnification from Agent even if a claim is tendered to insurance.
c. Agent’s Defense Obligations.
Agent’s defense obligations are subordinate to defense provided by any applicable HRE insurance.
12. Notice.
Notices must be in writing and sent via email to the specified email addresses. Notice is deemed delivered upon electronically confirmed receipt, and notices released after 5:00 p.m. are deemed delivered the following day.
If to Agent: (As specified by Agent in the system)
If to HRE: Household Real Estate, LLC: 41800 Hayes Road, Clinton Twp, MI 48038
13. Limitation of HRE Liability.
HRE's aggregate liability to Agent, except for certain specified obligations, shall not exceed the amount of Company Dollar paid by Agent during the twelve consecutive months preceding the first event giving rise to liability, not exceeding $300. HRE is not liable for consequential, special, incidental, punitive, or indirect damages.
14. Revisions.
a. Revisions By Passing of Time.
HRE may propose revisions, and if Agent does not object within seven days, the proposed revision becomes binding.
b. Revisions By Written Consent.
In states where revisions by the passing of time are prohibited, significant revisions require written consent. Agent’s objection may lead to termination by HRE.
c. Meaning of “Material Significance”.
“Material significance” refers to changes increasing Agent’s obligations or reducing Agent’s rights and benefits.
15. Confidentiality.
The terms of this ICA and HRE’s Policies are confidential. Agent shall not discuss them except with specific individuals.
16. HRE Right to Payment; Agent’s Payment Methods.
a. HRE Right To Payment.
HRE has the right to seek payment or reimbursement from Agent through various methods, including offset against fees or using Agent’s payment methods on file.
b. Agent’s Payment Methods.
Agent is responsible for ensuring current payment methods in HRE’s system. HRE is authorized to use Agent’s payment methods for all sums owed.
17. Cumulative Remedies.
HRE’s rights or remedies are cumulative and may be pursued singularly, successively, or together. HRE may seek equitable remedies in addition to legal remedies.
18. Sponsor.
Agent selects a sponsor upon joining, and this selection is irrevocable. Sponsor’s role is not to modify terms but to provide support. Sponsor selection may continue if Agent rejoins within a specific window.
19. Binding Arbitration; Jury and Class Action Waiver.
a. Arbitration.
Disputes shall be resolved through binding arbitration. HRE may choose a civil action in certain cases.
b. Individual Basis; Jury and Class Action Waiver.
Arbitration proceeds only on an individual basis. Both Parties waive the right to a jury trial and the pursuit of class or collective claims.
20. Non-Solicitation and Non-Disparagement.
Agent agrees to comply with HRE’s Non-Solicitation and Non-Disparagement Policy outlined in HRE’s Code of Conduct under the HRE P&Ps and handbook.
20a. Employee, Independent Contractor and Real Estate Agent Solicitation. During the term of this Agreement and for a period of two (2) years thereafter, Representative shall not directly or indirectly solicit or approach any employee, representative, real estate agent, independent contractor, affiliate or agent of the Company for the purpose of inducing such person to accept employment or affiliation involving competitive work with another firm or corporation of which Representative is an employee, independent contractor, owner, partner or consultant.
20b. Customer Solicitation. During the term of this Agreement and for a period of one (1) year thereafter, Representative shall not directly or indirectly communicate with, call upon, contact, solicit, prospect, divert, entice or sell to any current or prospective customers of the Company. Any breach of this covenant will result in injunctive relief and forfeiture of any profits incurred as a result of such breach.
21. Survival.
Rights and obligations under this ICA and in any of HRE’s Policies that extend beyond termination will survive. Sections 2.a, 3, 6.a, 6.c, 9.b, 9.e, 10, 11, 12, 13, 15, 16, 17, 19, 20, 21, and 22 specifically survive termination.
22. Miscellaneous.
This ICA is governed by the laws of the state in which Agent is licensed as a real estate licensee. In case of conflicts between the ICA and HRE’s Policies, the more restrictive terms apply. No failure or delay in exercising any right shall operate as a waiver. This ICA may be executed in identical counterparts, each considered an original. Electronic signatures have the same force as original signatures.
Section headings are for convenience and not part of the agreement. In the event of unenforceability of any provision, it shall be deemed severed, and the remaining provisions shall remain in force. The desire is to enforce the ICA to the fullest extent permitted by law. Any dispute's prevailing party is entitled to recover reasonable legal fees and costs.
Agent agrees to maintain all transaction documents and share such documents with HRE and/or Broker within 24 hours of request. All transaction documents should be maintained for a period of 5 years. All documents to be maintained include but are not limited to failed purchases, receipts, listings, disclosures, purchase agreements, and any other transaction documents as defined by the regulatory agency which the Agent is licensed under.
IN WITNESS WHEREOF, and by their electronic signatures below, the Parties agree to enter into and be bound by the terms of this ICA effective as of the Effective Date.
[Agent’s Electronic Signature]
[Date]
[Household Real Estate, LLC.’s Electronic Signature]
[Date]
[Agent’s Signature Here]
I agree to the terms and conditions.