Employment Contract
Create a Texas-compliant commercial real estate broker employment contract. Addresses Tex. Bus. & Com. Code, commission disputes, and NNN lease liabilities.
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In the high-stakes world of Texas commercial real estate, a handshake is not enough to protect your brokerage from liability or commission disputes. This employment contract is specifically... Read more
In the high-stakes world of Texas commercial real estate, a handshake is not enough to protect your brokerage from liability or commission disputes. This employment contract is specifically engineered to satisfy Tex. Bus. & Com. Code § 15.50 requirements for non-compete enforceability while addressing the nuances of triple net (NNN) lease negotiations and CAM charge disputes. By clearly defining the 'at-will' relationship and detailing trigger points for commission payments, you mitigate the risk of misrepresentation claims and DTPA exposure, ensuring your firm remains compliant with both the Texas Labor Code and RESPA regulations.
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 Tex. Bus. & Com. Code § 15.50, a non-compete must be 'ancillary to or part of an otherwise enforceable agreement' at the time it is made. This means the contract must provide specialized training or confidential trade secrets in exchange for the restrictive covenant to be enforceable against a broker in Texas.
Texas is an at-will employment state. Including an express at-will provision ensures that both the brokerage and the employee can terminate the relationship for any lawful reason, helping to prevent wrongful termination claims under Tex. Lab. Code § 21.051 unless otherwise specified in a fixed-term agreement.
To prevent issues with non-binding Letters of Intent (LOI), this contract allows you to define exactly when a commission is earned—typically upon the execution of a final lease or sale agreement and the satisfaction of all contingencies, rather than just the procurement of a ready buyer.
Yes. It includes specific indemnification and disclaimer clauses to mitigate risks associated with misrepresentation claims and DTPA consumer protection issues, requiring brokers to verify all financial data such as cap rates and tenant improvement allowances before client presentation.
State laws affect what must be in this document. Pick your jurisdiction.
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