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
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.
Beyond the standard employment contract sections, this template adds fields specific to Commercial Real Estate Broker:
An employment contract establishes a formal employment relationship between an employer and an employee, outlining the terms and conditions of employment, rights, obligations, and responsibilities of both parties. It provides legal protection and clarity, ensuring compliance with employment laws and minimizing the risk of misunderstandings and disputes.
Misrepresentation claims
Detailed disclaimers in contracts stating that all representations are believed to be accurate but should be independently verified by clients.
Commission disputes
Clear agency agreements and commission schedules included in contracts outlining the fees and when they are earned.
For this employment contract to be legally valid:
Common mistakes to avoid:
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.
State laws affect what must be in this document. Pick your jurisdiction.
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