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Employment Contract
Create a legally compliant Ohio commercial real estate broker employment contract. Addresses RE.C. § 1335.05, commission schedules, and Ohio-specific non-competes.
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In the high-stakes world of Ohio commercial real estate, verbal agreements or generic templates do not suffice. To avoid common industry liabilities like commission disputes and misinterpretation of... Read more
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[Tenant Improvement (TI) Oversight Duties]
Clearly defines the employer and employee, including legal names and addresses, to establish who is bound by the contract.
Specifies the employee's position, duties, and responsibilities, providing clarity on job expectations, which helps prevent future disputes.
Details salary, payment schedule, and any additional benefits such as health insurance, retirement plans, bonuses, etc., to ensure clarity on remuneration terms.
Outlines expected working hours, overtime policies, and any flexible working arrangements, essential for setting mutual expectations.
Defines the duration of employment (if applicable) and conditions under which either party can terminate the contract, including notice periods and severance, to manage termination processes.
Requires the employee to keep proprietary information confidential, protecting the employer's business interests and trade secrets.
Restricts employee's ability to compete with employer or solicit clients and employees post-employment, although enforceability varies by state.
Outlines methods for resolving disputes, such as arbitration or mediation, which can lower litigation costs.
Ensures that if one part of the contract is invalid, the remainder stays in effect, preserving the contract’s overall integrity.
Specifies which state's laws will govern the contract and where any legal actions would be taken, providing predictability in the legal environment.
Requires any modifications to the contract to be in writing and signed by both parties, ensuring that the written contract remains the definitive source of agreement terms.
In the high-stakes world of Ohio commercial real estate, verbal agreements or generic templates do not suffice. To avoid common industry liabilities like commission disputes and misinterpretation of LOI non-binding clauses, you need a document that respects Ohio Rev. Code Ann. § 1335.05 (Statute of Frauds) and provides clear definitions for Triple Net (NNN) leases and CAM charges. This contract ensures that brokers and firms are protected under Ohio-specific laws, including the business judgment rule for corporate governance and O.R.C. § 4112.02 for anti-discrimination, while establishing precise triggers for payment to mitigate risks surrounding tenant improvement allowances and lease liabilities.
Under Ohio Rev. Code Ann. § 1335.15, any employment agreement intended to last more than one year must be in writing. Furthermore, § 1335.05 requires real estate-related commissions and performance obligations to be documented in writing to be legally enforceable in Ohio courts.
Ohio is an at-will employment state, but commercial brokerage contracts often use 'at-will' as a baseline while adding specific notice periods for termination. This document balances Ohio's baseline at-will status with necessary protections for ongoing deals, ensuring commissions earned on active LOIs or signed leases are accounted for post-termination.
To prevent disputes, the contract must explicitly state whether commissions are calculated on the base rent or the total lease value including CAM (Common Area Maintenance) and Triple Net charges. We recommend clear schedules that define payment triggers at the 'time of execution' versus 'time of occupancy' per Ohio commercial standards.
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