Joining a Team
What a Real Estate Team Agreement Covers: The Clauses to Read Before You Sign
Updated
Bottom line: A team agreement sets the fee you pay the team leader per deal, what the team expects of you and what it provides. At Real Brokerage that fee is still paid after you cap.
What does the split clause in a team agreement set?
The split clause is the one most agents read first. In a Real Brokerage help article, the team split is described as a fee a team member pays the team leader on every transaction, and the Team Addendum on file with Real is what governs it.
A second Real help article, on team leads and sponsors, says the fee is usually a percentage per closed deal, paid for the leader's guidance and leadership and sometimes for leads or referrals. It is set in your Team Agreement, it comes out of your share of the commission, and it goes from your commission straight to the team lead.
So when a template leaves the split as a blank, the question is what fills it: the percentage, what it pays for, and which document controls it.
Does the team split stop when you cap at Real Brokerage?
No. Real's help article on split calculation flags that the team split keeps applying after you cap with Real. The cap is a brokerage term, and the split sits in your agreement with the team leader.
That matters most at the volume you already run. When you model a year, put the team split against every closing, including the ones after your cap date, and read the agreement for what the leader provides on those deals too.
Which split structures show up in team agreements?
HousingWire's guide on joining a team, written by broker Shannon Sharpe, lists several models beside a straight percentage.
In HousingWire's description, a tiered split raises the agent's share of commission as experience and closed deals grow.
HousingWire also describes teams that charge a set fee per transaction in place of a split, and hybrid models where administrative support carries a flat fee and the team's other resources carry a percentage.
Whichever model a template uses, the agreement should show how it applies to your deals, in numbers you can check against your own closings.
What should the agreement say besides the split?
HousingWire's advice is to make sure the team agreement spells out the commission split, what the team expects of you, and the resources the team will provide.
Resources are easiest to compare when each one is written by name. On our team, every agent has a designated mentor through the Squad Leader Program, a full-time ISA team qualifies leads and sets appointments, and the Success Team handles transaction coordination and compliance, from deadlines and inspections to commission disbursement agreements and closing documents.
Expectations deserve the same detail. Our 30/60/90 day plan for experienced agents sets weekly targets for calls or conversations and monthly targets for appointments, opens ISA appointments after the first 30 days, and in the next 30 days has you meeting weekly with your Squad Leader and the Success Team to clear bottlenecks.
What Texas rules does a team agreement have to fit inside?
TREC sets the frame for any Texas team agreement. It says every commission must be paid through the agent's sponsoring broker, and a team agreement sits inside that rule.
TREC also treats a buyer representation agreement as a private contract between the buyer and the broker, not the sales agent, which is worth keeping in mind when a team agreement talks about clients.
Team names have set wording under TREC: a name has to end in team or group and cannot use words such as brokerage, company or associates.
TREC adds that the sales agent's agreement with the broker should also address how compensation is handled, so expect your pay to appear in the broker paperwork as well as the team's.
Which brokerage clauses sit above the team agreement?
A team agreement sits under the contract between you and the brokerage, and those contracts carry their own clauses. eXp Realty's independent contractor agreement, filed as Exhibit 10.1, is one published example.
In it, the contractor accepts an at-will agreement, agrees that compensation earned for licensed real estate work is made payable to the company, agrees not to disclose confidential company information, including leads the company generates, during or after the affiliation without the company's written consent, and waives any right to a jury trial.
Read the team document with that contract open beside it. Where the two touch the same subject, such as who receives the commission or what stays confidential, know which document says what before you sign.
Filed in The team.
Questions & answers
What do Houston agents ask about this?
What clauses should a real estate team agreement have before I sign it?
Start with three: the split you pay the team leader, what the team expects of you, and the resources it will provide. HousingWire's guide on joining a team gives that list of splits, expectations and resources. Read the team document beside your brokerage contract too. In Texas, TREC says every commission runs through the sponsoring broker, and the agent's agreement with the broker should also address how compensation is handled.
For the split, a Real Brokerage help article describes the team split as a per-transaction fee the member pays the team leader, governed by the Team Addendum on file with Real. Real's article on team leads and sponsors adds that the fee is typically a percentage, set in the Team Agreement and taken from your portion of the commission. For resources, ask for each one written by name. On our team, every agent has a designated mentor through the Squad Leader Program, the Success Team handles transaction coordination and compliance, and on the 30/60/90 day plan for experienced agents you gain access to ISA appointments after your first 30 days.
Do I still pay the team split after I cap at Real Brokerage?
Yes. Real's help article on how a team split is calculated says the team split is still paid after you cap with Real. The cap is a brokerage term. The split is a fee you pay the team leader on each transaction under the Team Addendum on file with Real, and Real's article on team leads and sponsors says it comes out of your portion of the commission.
When you weigh a team, put the split against every closing in the year, including the deals after your cap date. The agreement should also say what the leader provides on those deals. Real's article on team leads and sponsors lists guidance and leadership, and possibly leads or referrals, as what the percentage fee is typically paid for.
What kinds of team splits will I see besides a straight percentage?
HousingWire's guide for agents joining a team, by broker Shannon Sharpe, names tiered splits, flat fees and hybrid models. A tiered split raises the agent's percentage as experience and closings grow, a flat-fee team charges a set amount per transaction in place of a split, and a hybrid charges a flat fee for administrative support with a percentage for the team's other resources.
Whichever model you are offered, ask to see it worked through on your own recent closings so you can check the arithmetic. At Real Brokerage, the Team Addendum on file with Real is what governs the team split, so that document is where the model you agree to is written down.
On a Texas team, who does the buyer representation agreement belong to?
TREC says a buyer representation agreement is a contract the buyer makes with the broker, not with the sales agent. TREC also says all commissions must run through the agent's sponsoring broker. A team agreement works inside those rules, so read its client and commission clauses with the broker's role in mind before you sign.
The broker-level contract carries its own terms as well. eXp Realty's independent contractor agreement, as one published example, has compensation for licensed real estate work made payable to the company and treats the affiliation as at will. Read the team agreement and your contract with the broker side by side, so you know which document governs which subject.