Keller Williams Realty



Revised 1/15/08

INDEPENDENT CONTRACTOR AGREEMENT

For

New Jersey Referral Real Estate, LLC

120 Canal Pointe Blvd—Suite 120B

Princeton, NJ 08540

609-987-8889

An Affiliate of Keller Williams Princeton Real Estate

Agent’s Name:

Agent’s Social Security Number:

Agreement Date:

Engagement

This Agreement is entered into on the date shown above between the Agent and Licensee (herein called NJRRE or Licensee) identified above. Subject to the terms and conditions of this Agreement, Licensee permits Agent as an independent contractor to only refer real estate opportunities to other licensed real estate associates or to the Team Leader at Keller Williams Princeton Real Estate. Agent understands clearly they can conduct no real estate transactions of any type whatsoever. Agent accepts this premise and agrees to refer interested individuals to other licensed agents or the Keller Williams Princeton Team Leader in the manner and subject to the conditions this Agreement provides.

General Terms of Engagement

1 Agent understands that he or she is entering into this Agreement as an independent contractor and not as an employee. Licensee will have no responsibility to withhold or pay any income or other taxes on Agent’s compensation or to provide any insurance, retirement or other employee benefits to Agent. Agent’s independent contractor status will define the parties’ relationship despite any contrary designation that appears on Agent’s real estate license.

2 Agent agrees not to do anything by action, conduct, statement or association that might damage the goodwill associated with NJRRE’s name, trademarks or reputation or cause the public to lose confidence in the this organization.

3 Agent will have no authority to incur obligations on Licensee’s behalf and promises (1) not to sign any contract, agreement, lease or note in the name of Licensee, (2) not to open or maintain any bank account or investment account in the name of Licensee, and (3) not to endorse for collection or deposit in Agent’s personal account any check, money order or other negotiable instrument made payable to Licensee.

Compensation and Expense Allocation

1 For so long as Agent’s association with NJRRE continues, all income earned from Agent’s real estate activities will be accounted for and disbursed through the NJRRE Office.

2 Licensee will share the commissions earned on real estate transactions in which Agent provided a referral client as buyer or seller in accordance with the procedure attached, dated January, 2008. Agent acknowledges that Licensee retains sole discretion to change these policies. Agent’s compensation will be payable only from closed transactions, and Agent may not draw or borrow against any compensation payment.

3 Agent will be solely responsible for paying the cost of his or her own real estate license fees and occupational taxes. The agent specifically is prohibited from joining any county Board, MLS, and has no need to purchase E & O insurance.

E&O Liability Insurance; Indemnification

1 Because agent is not an active agent, it is not necessary to obtain and pay for E&O Insurance covering errors and omissions incident to the professional services a real estate sales associate customarily provides.

2 If and to the extent Agent fails to protect Licensee against risks customarily covered by E&O insurance, Agent agrees to indemnify and hold Licensee harmless from and against all Liability that Licensee incurs or suffers on account of Agent’s intentional disregard or breach of any law, regulation or standard of conduct that applies to Agent’s actions or activities as a licensed real estate sales associate working only as a referral agent.

3 For risks not customarily covered by E&O insurance and for Liability arising from Agent’s negligent (unintentional) disregard or breach of any law, regulation or standard of conduct that applies to Agent’s actions or activities as a licensed real estate sales associate, Agent agrees to indemnify and hold Licensee harmless.

Restrictive Covenants

A. A Referral Agent can:

1. Ask friends, neighbors and others, who are a part of a “sphere of influence”, if they would like to be contacted by a referred Sales Associate. You can ever offer only general information.

2. Elicit a commitment from the prospect to work with your referred professional Sales Associate.

B. A Referral Associate Can Not:

1. Solicit already-listed property owners.

2. Use the MLS, lockboxes or any listing materials.

3. Discuss commissions, as they are totally negotiable between the seller and the listing agency.

4. Qualify the lead financially in any way.

5. Have the prospect call you with every question, as they need to develop trust in the referred Sales Associate.

Term and Termination

1 Agent’s association with NJRRE will continue for an indefinite period. Either Agent or Licensee may terminate Agent’s association with the Market Center at any time, with or without cause or prior notice. Annual fees are payable effective January 1, or pro-rated quarterly.

2 Termination of Agent’s association with NJRRE will not terminate any of the continuing rights or obligations of either Agent or Licensee under this Agreement.

3 If Agent has an active referral at time of separation, Agent will receive normal share of the related commission when a sale of the property closes.

4 If Agent owes Licensee any Participation Fees or other amounts at the time Agent’s association with NJRRE terminates, or if any amounts become due after termination, Agent authorizes Licensee to deduct the amount due from any commissions or other amounts due Agent until Agent’s account with Licensee has been fully paid.

Representations

1 Agent represents to Licensee that:

1 (1) Agent is duly licensed as a real estate broker or salesperson (a “Real Estate Professional”) in New Jersey and that Agent is willing to put their license into New Jersey Referral Real Estate, LLC and function only as a referral agent.

2 (2) Agent is not now, and has not been within the last five years, a defendant in any lawsuit alleging professional misconduct or violation of any deceptive trade practices/consumer protection law, nor is Agent currently subject to an investigation by a real estate commission or comparable oversight body.

3 (3) Agent expressly represents and warrants that Agent is free to associate with NJRRE and that Agent is not bound by a promise or commitment to any other real estate company, agency, association, firm, person or corporation that prohibits or prevents Agent from associating with NJRRE.

4 (4) No representative of Licensee has represented that Agent can earn a living referring residential real estate business. Agent recognizes that the predominant method of earning income in real estate is through the full-time employment by a real estate firm.

2 Licensee represents to Agent that Licensee is duly licensed as a real estate broker in New Jersey

Miscellaneous Provisions

1 If any provision of this Agreement is found to be void or unenforceable by any court or arbitration panel, the finding will have no effect on any other provision of this Agreement, and all other provisions will remain in full force and effect. This Agreement, including NJRRE’s “Explanation Addendum”, dated January 15, 2008, constitutes the entire agreement and understanding between the parties and supersedes any prior agreement or understanding relating to the subject matter of this Agreement. No change, amendment or waiver of any provision of this Agreement will be binding unless in writing and signed by both Agent and Licensee.

AGENT: LICENSEE:

_____________________________ ________________________

By:_____________________

________________________

NJ Referral Real Estate, LLC

100 Canal Pointe Blvd. Suite 120B

Princeton, NJ 08540

609-987-8889

Revised January 15, 2008

To Whom It May Concern: New Licensee should keep this Explanation!

From: Max Lancaster, Broker-of-Record

“Explanation” Addendum

to the Independent Contractor Form & Operations of:

New Jersey Referral Real Estate, LLC

100 Canal Pointe Blvd—Suite 120B

Princeton, NJ 08540

New Jersey Referral Real Estate, LLC is an affiliated Keller Williams Princeton Real Estate company, and is jointly owned by The MJ Lancaster Group, LLC dba Keller Williams Princeton Real Estate (NJ) Market Center and its management. It has been formed to provide an easy way for referral associates to refer business to Keller Williams Realty, International offices anywhere and generate income for the agent while keeping their NJ real estate license in “referral only” status. The following criteria is hereby established to insure smooth and orderly operation:

Max D. Lancaster is appointed as “Broker-of-Record” in accordance with NJ Real Estate Commission rules.

How to join:

1. The annual fee for NJ licensed real estate associates who desire to place their license in this referral system is $145, payable to New Jersey Referral Real Estate, LLC. (Pro-rated quarterly).

2. The agent’s real estate license must be presented to the LLC Broker-of-Record, Max D. Lancaster, along with a $25 check for the license transfer, made out to “New Jersey Referral Real Estate, LLC”

3. Every two years, July 01 of alternate years, NJ Real Estate Licenses are renewed. The referral agent must pay their own license fees when invoiced.

4. Each new agent must sign an associate information sheet & provide it with Contract.

Making a referral:

1. The referral agent will fill out the appropriate referral form and keep a copy in the office for reference. Every KW Office has this referral form.

2. The GM/Team Leader will assist you in making a referral to a distant locale where there are, or, are not, Keller Williams Market Centers.

A Referral Associate can do the following:

1. Ask friends, neighbors and others, who are part of a “sphere of influence”, if they would like to be contacted by a Sales Associate. You can offer only general information.

2. Elicit a commitment from the prospect to work with our referred professional Sales Associate.

A Referral Associate can not:

1. Solicit already-listed property owners.

2. Use the MLS, lockboxes or any listing materials.

3. Discuss commissions, as they are totally negotiable between the seller and the listing agency.

4. Qualify the lead financially in any way.

5. Have the prospect call you with every question, as they need to develop trust in the referred Sales Associate.

Getting Paid:

There will be a referral fee paid of a negotiated amount of the referred Sales Associate’s commission. Typically, this is 25% of the Gross Commission on Listing or Selling side, but can vary. This fee will be initially paid to New Jersey Referral Real Estate, LLC, from whatever real estate company handled the actual client. New Jersey Referral Real Estate, LLC will deduct 10% for its fee, and forward a check to you for the 90% balance.

Example:

Property: 123 Main Street, Somewhere, NJ

Sale Price: $400,000

Total Commission: 6%

Listing Commission: 3%

Listing Commission Computation:

Listing Commission: $400,000 X 3% = $12,000

New Jersey Referral Real Estate, LLC receives a referral commission check from Keller Williams of 25% on the gross commission on the listing side:

$12,000 X 25% = $3000

This referral check is then split 90%-10% as follows:

New Jersey Referral Real Estate, LLC receive 10% of $3000 = $300

You, the original referring agent, receive 90% of $3000 = $2700

If you are paid any referral fees during the course of the calendar year, you will be sent a Form 1099 accordingly.

Summary: Provide us the following to start:

A. Your license

B. Independent Contractor Agreement signed with attachments.

C. Check for $170 Total ($145 annual fee + $25 for license change.)

Question of any type? Call Max Lancaster or Micah Senter at above number.

Simple!

New Jersey

Referral Real Estate, LLC

100 Canal Pointe Blvd. Suite 120B

Princeton, NJ 08540

609-987-8889

Personnel Information Form

Date: ___________

Name: ______________________________________________

Address: ____________________________________________

City:________________State:_______________Zip:_________

Birth Date: ___________________________________________

Social Security: ______________________________________

Home Phone: _______________________________________

Cell Phone: _________________________________________

Email Address: ______________________________________

Web Address:_______________________________________

Spouse’s Name: _____________________________________

I have a license in the following states: ___________________

Are you a citizen of the USA? __________________________

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