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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
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[Geographic Restriction for Non-Compete]
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 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.
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.
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