Independent Contractor Agreement - Colorado Plan B
INDEPENDENT CONTRACTOR AGREEMENT – COLORADO
KlutznickRG Colorado d/b/a The K Company Realty LLC dba LoKation®, is licensed as a real estate broker in the State of Colorado. The Broker is now, and has been, engaged in business as a General Real Estate Broker in the State of Colorado, is qualified to and operates a General Real Estate business and procures the listing of Real Estate for sale. The parties hereto consider it to be the mutual advantage of the parties to enter into this contract upon the terms and conditions hereinafter set forth.
Effective upon your acceptance of this agreement and all necessary documents and/or information has been received by The K Company Realty LLC dba LoKation®; you as the “Associate Broker” become an Independent Contractor for The K Company Realty LLC dba LoKation®.
- Employment Status.This agreement does not constitute a hiring of either party or the formation of employer/employee relationship. Parties hereto are, and will remain, independent contractors. The Broker will not be subject to withholding for taxes or other payroll items. Associate Brokers will be required to pay his/her own taxes, his/her own assistants, and his/her own transportation expenses.
- Associate Responsibilities.Associate Broker is responsible for submitting the required License Transfer Form and the $50.00 fee to be paid by Associate Broker to DORA for such transfer. The Managing Broker will forward the license # for the company to Associate Broker via email after receipt of the Independent Contractor Agreement is received by company. Associate Broker will use his/ her best efforts to procure real estate-related business for Broker and will conduct his/her business in a reputable manner and in conformance with all laws, rules, regulations and codes of ethics that are binding upon or applicable to real estate licensees, and with Broker’s office policy manual and Independent Contractor agreement herein. Associate Broker recognizes and acknowledges the obligation to keep abreast of all legal and other issues that affect the real estate industry as they may change from time to time. Associate Broker and Broker each agree to conduct their business and regulate their habits as to maintain and increase the good will, business, profits, and reputation of the Broker and Associate Broker. Associate Broker agrees to maintain a familiarity with the working knowledge of the rules and regulations of the Colorado Real Estate Commission, the National Association of Realtors, and the local Board of Realtors. Associate Broker agrees to be completely knowledgeable of and to conduct his/her business in accordance with the code of ethics of the National Association of Realtors. Associate Broker agrees to follow the continuing education requirements set forth by the Real Estate Commission. Associate Broker will not utilize the services of or direct any spouse, relative, friend, assistant or runner to provide any service or function where a Real Estate License is required in the State of Colorado. In the event that two or more Associate Brokers under contract with the Broker have overlapping or conflicting claims with respect to a commission, over and above the Brokers’ share will be divided among the participating Associate Brokers according to a mutual agreement, mediation, or arbitration. In no case will Broker be personally liable to Associate Broker for any disputed commissions. Associate Broker will pay all the costs of the Associate Broker’s own Real Estate Licensing fees, dues, and expenses for service and/or membership in the National Association of Realtors, Colorado Association of Realtors, local Board of Realtors, and MLS systems. Associate Broker monthly fees are to be paid per section 10 of this agreement. Associate agrees to not market real estate services and/or recruiting of other Associate's in the State of Hawaii.
- Fair Housing.Broker and Broker’s companies support and practice Fair Housing principles. Associate has been advised that failure to comply with Fair Housing principles will result in appropriate disciplinary action and possible termination of this Agreement. Associate warrants and represents that it is Associate’s intent to attend Fair Housing instructional programs, keep current on developments in Fair Housing on National, State, County and City levels as it affects real estate marketing and sales, and comply with the Fair Housing laws and regulations. Associate understands this acknowledgment, warranty and representation and agrees to it voluntarily..
- Policy and Procedures Manual.In addition to this document, upon activation, Associate Broker will receive a manual containing standard policies and procedure guidelines that Associate agrees to comply with. Associate shall read and is encouraged to print a copy, and agrees to comply with the manual and such modifications, addenda and changes as may be incorporated therein from time to time. A current version of this manual is made available to all agents at all times through the Agent Dashboard on Broker’s website.
- License Renewal; Continuing Education; Dues.Associate Broker will be responsible for timely renewing Associate’s real estate license and for completing all legally required continuing education in a timely manner and maintaining the records that evidence such completion as required by the Department of Regulatory Agencies. Associate will be responsible for paying all license fees, membership dues and fines.
- Broker Property.Associate Broker acknowledges that all pending sales and listings taken during the term of this Agreement are considered Broker’s property. All programs, forms, data, keys, manuals, signs and other property relative to the business of Broker are Broker’s property, as are all documents and other items pertaining to transactions. Upon affective cancelation of this agreement, Associate Broker may request to transfer his/her listings to another Broker and the request will be granted, sans fees, as long as the sellers agree and permit the transfer in writing.
- Broker will not be liable to Associate Broker for any expenses incurred by Associate nor for any of Associate’s acts without explicit Broker authorization. Associate will have no authority to bind Broker by any promise or representation, oral or otherwise, unless specifically authorized in writing in a particular transaction. Suits, whether for fees or otherwise, against clients, customers and others in the real estate business will be maintained only in Broker’s name. Associate Broker is responsible for providing all tools necessary to perform the duties outlined. Associate will also be responsible for providing Associate’s own automobile and is responsible for transportation expenses including insurance in the minimum coverage amount of what is required by the State of Colorado. Broker will be named as an additional insured in all such policies.
- Associate Broker will indemnify and hold The K Company Realty LLC dba LoKation®, Broker, its officers, directors and employees harmless from all claims, demands, suits, costs and expenses, including reasonable attorneys’ fees at all levels, of whatever nature and description to the extent based on Associate’s representations; acts; omissions; negligence; willful misconduct; or violation of laws, rules, regulations, codes of ethics, this Agreement or office policy manual. All costs and obligations incurred by associate conducting his/her independent business shall be paid solely by the Associate Broker, who will hold Broker harmless from any and all costs and obligations throughout the term of this agreement and beyond termination should any claim, demand, suit, cost, or expense arise from the period of time associate was affiliated with The K Company Realty LLC dba LoKation®.
- Broker Responsibilities.Broker will negotiate all terms and conditions of fees charged to clients including but not limited to, the amount and payment date of commissions and fees. Broker will compensate Associate Broker in proportion to Associate’s output with regard to real estate-related activities and not to hours worked by Associate. Such compensation will be solely through commissions as described below. In the event of conflict between Broker’s office policy manual and this Agreement, the terms of the office policy manual will prevail. Broker may deduct from Associate’s compensation any amounts due from Associate to Broker. When Associate performs any Brokerage service for Broker and Broker earns and collects a fee for such service, Broker will pay Associate Broker within 3 days after the funds are collected and have cleared the company’s banking institution.
- Commissions and Fees:Associate Broker will receive 100% of the earned commission minus $299.00 fee per commission per side and/or any past due invoices or expenses. In order to receive 100% of an earned commission, Associate Broker agrees to pay by credit card or ACH debit $49.00 per month, every month beginning the day the associate joined. The recurring payments will be debited on the same day the following months until the broker or associate terminates this agreement. Payments will be made promptly to Associate Broker only after the Broker has received a complete rental/sale file. If a party to the transaction or Listing Broker offers a premium, bonus, additional commission or other incentive, if such premium, incentive or bonus is in the form of money, the bonus will be considered a separate commission and an additional $99 fee will be deducted from the commission. If the Associate Broker is not current on their monthly dues, the past due amount will be subtracted from the earned commission. All monthly fees are due the same day of the month the Associate joined and are considered past due 5 days after such date if payment has not been received by Broker. It is the Associate’s sole responsibility to ensure all payments are made on a timely manner and immediately report to the broker if a problem exists with the associate’s monthly payment method. There is no late fee or charge for the associate’s first late payment, however if it becomes habitual or occurs more than once broker will charge an additional $99 for late fees and charges for each late payment to cover administrative expenses.
- Dividing Compensation with Other Licensees. If two or more Associates participate in rendering a brokerage service to the public, or claim to have done so, Broker will determine, in Broker’s sole and absolute discretion, the amount of the fee due Associate Broker. If such incentive is other than money (i.e., a cruise, trip, or other matter having economic value but not delivered in money), then such premium, bonus or incentive will go to Associate. If a nonmonetary incentive goes to Associate, Broker will report the fair market value of the incentive as income to Associate, as Broker must collect and deliver the incentive to associate to preserve the respective legal positions of the parties.
- Associate will be provided no minimum salary, vacation pay, sick leave or any other fringe benefit.
- Mentor ProgramIn the event Associate Broker is newly licensed, he/she must enter the Mentor Program which includes 1 on 1 training and career mentoring from Employing Broker or assigned Experienced Broker. Associate Broker will receive 70% of the earned commission for the first 3 transactions completed minus any past due invoices or expenses. In order to receive 70% of an earned commission, Associate Broker must be up to date with all fees incurred with Employing Broker. After the first 3 transactions, Associate Broker will receive 100% of earned commissions minus the transaction fee for the plan selected during registration.
- Collection of Fees.Broker will not be required to prosecute or sue any party in order to collect any fee for services performed by Associate. However, if Broker incurs attorney’s fees and costs in the collection of or attempt to collect a fee, such amounts will be deducted from Associate’s commission in the same proportion as provided for herein in the division of the fee.
- Commission Disputes: The K Company Realty LLC dba LoKation® can retain up to fifty percent (50%) of any disputed commission that requires corporate, Managing Broker, or management intervention to receive such commission. This includes but is not limited to disputes with other brokerages, buyers, sellers, developers, boards, etc. Agent agrees to reimburse The K Company up to $250 per hour to reimburse for any and all legal fees incurred or requested in regards to the agent’s disputed matter for legal counseling or advice review at the discretion of The K Company Realty LLC dba LoKation® Partner’s, Managing Broker or staff.
- Compensation after Termination of Agreement. After termination of this Agreement, Broker will pay Associate Broker any amount earned prior to termination, less amounts owed to Broker and amounts Broker must pay another licensee to complete pending transactions for which Associate Broker was responsible prior to termination.
- Errors and Omissions Insurance. Every Sales Associate is required to maintain Errors and Omissions Insurance as required by DORA.
- Terms of Termination.Associate can cancel this agreement at any time by providing 30 days written notice. A manager of the company must acknowledge receipt of such cancellation and your automatic billing will be canceled after your next payment has been deducted. Broker may terminate this Agreement without notice at his/her sole discretion or for wrongful conduct by Associate Broker. Failure by either party to maintain active licensure status pursuant to Colorado Statutes, will be deemed automatic termination. Associate will not, after termination of this Agreement, use to his/her own advantage, or to the advantage of any other person or entity, any information gained from the business of the Broker relating to property for sale, lease or rental, or Broker’s customers or clients. Upon termination of this Agreement, Associate will return all Brokers’ property to Broker with no copies made or retained by Associate.
- Associate acknowledges that Broker may disclose confidential information to Associate during the course of this Agreement. Any such information that is or should be reasonably understood to be confidential or proprietary to Broker, including mailing lists, customer and client lists, sales, costs, unpublished financial information, product and business plans, projections, marketing data, computer data, computer programs and supporting documentation, and Broker’s office policy manual are considered confidential property of Broker. Internet practices, marketing, K Company online workplace, every feature, practice and function of www.jointhekcompany.com and www.kcorealty.com, and any and all company websites are considered confidential information and practices of the broker. Associate will take reasonable steps and use due care during the term of this Agreement and for 60 months after its termination to prevent the duplication or disclosure of confidential information and practices.
- Dispute Resolution:This Agreement will be construed under Colorado law. All disputes between Associate Broker and another Associate Broker in Broker’s firm will be resolved by Broker. All disputes between Broker and Associate will be mediated under the rules of the American Arbitration Association or other mediator agreed upon by the parties. The parties will equally divide the mediation fee, if any. In any litigation between Broker and Associate Broker, the prevailing party will be entitled to recover reasonable attorneys’ fees and costs at all levels.
- Office Use and Keys:Our physical offices are available for use by all Associates that have expressed consent from the broker. Keys and/or passwords to gain access to our offices may be granted upon request.
- Computers:Company computers are for work related use ONLY! No personal emails allowed. If you do not use a company email address you must open your emails from your own personal computer. The K Co. reserves the right to open, observe and research all email and Internet activity on company computers or emails. ABSOLUTELY NO BROWSING RANDOM WEBSITES OR OPENING PERSONAL EMAILS. In the event a virus infects the computer the responsible party will be required to resolve the problem.
- Conference Room Usage:The conference rooms are available on a first-come first-serve basis. You must contact an office staff member if you wish to reserve a conference room for a specific time.
- Escrow:The K Company Realty LLC dba LoKation® does NOT maintain an escrow account. All escrow services are provided by an outside escrow company.
- Modifications:Broker hereby retains the right, in its sole discretion, to adjust rules, requirements, dues & other fees or charges associated with this agreement with 30-days written or electronic notice.
- Broker Price Opinions (BPOs): By accepting this agreement and conducting Broker Price Opinions, Associate acknowledges the below clause labeled, BROKER PRICE OPINIONS (BPOs). Associate agrees to turn any and all paperwork originated from conducting BPOs and the BPOs themselves into the office the day they are completed.
BROKER PRICE OPINIONS (BPOs): Associate agrees they are conducting BPOs at their own risk and it is not encouraged by The K Company Realty LLC dba LoKation® unless the Associate Broker has been certified or trained by a state recognized institution for conducting Broker Price Opinions. Associate Broker will indemnify and hold The K Company Realty LLC dba LoKation®, broker, its officers, directors and employees harmless from all claims, demands, suits, costs and expenses, including reasonable attorneys’ fees at all levels, of whatever nature and description to the extent based on Associate’s representations; acts; omissions; negligence; willful misconduct; or violation of laws, rules, regulations, codes of ethics, any and all claims from Associate conducting Broker Price Opinions (BPOs). All costs and obligations incurred by Associate conducting his/her independent business and/or the practice of Broker Price Opinions shall be paid solely by the Associate, who will hold Broker harmless from any and all costs and obligations.
By accepting this agreement online during the registration process and signing electronically, you indicate you have read, understand and agree to be bound by this agreement. You also agree to the terms and conditions of the entire agreement with no modifications.
By accepting and signing this agreement electronically, you hereby authorize The K Company Realty LLC dba LoKation® to charge the listed Credit Card defined in your registration according to the terms outlined in this agreement. If the payment due falls on a weekend or a holiday, Associate understands that the payments may be executed on the following business day. Associate understands that this authorization will remain in effect until Associate provides a 30-day written cancellation request with acknowledged receipt from The K Company Realty LLC dba LoKation® and/or Manager for The K Company Realty LLC dba LoKation®. You, as the Associate Broker, understand your membership will be canceled after your last payment is due. You hereby certify that you are an authorized user of this credit card and that you will not dispute the scheduled payments with my credit card company provided the transactions correspond to the terms indicated in this authorization form and independent contractor agreement document herein.
Please print a copy of this agreement for your records.
The K Company Realty LLC dba LoKation®