Employment Contract
Create a Texas-compliant real estate agent employment contract featuring at-will terms, commission structures, and DTPA protections under Texas law.
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In the high-stakes Texas real estate market, a handshake is not enough. This employment contract is engineered to address the specific complexities of the Texas Business and Commerce Code, including... Read more
In the high-stakes Texas real estate market, a handshake is not enough. This employment contract is engineered to address the specific complexities of the Texas Business and Commerce Code, including Statute of Frauds requirements for commissions. By clearly defining fiduciary duties and MLS participation, you mitigate risks related to disclosure violations and DTPA consumer protection claims. Whether you are scaling a brokerage in Austin or hiring in Dallas, this document ensures your agency agreements are legally robust and non-compete clauses are ancillary to an enforceable agreement as required by Tex. Bus. & Com. Code § 15.50.
Beyond the standard employment contract sections, this template adds fields specific to Real Estate Agent:
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.
Disclosure Violations
Using detailed disclosure forms and checklists mandated by state laws to ensure all known defects and issues with a property are disclosed to the buyer.
Breach of Fiduciary Duty
Drafting clear agency agreements that outline responsibilities and obtaining written consent for any conflicts of interest.
For this employment contract to be legally valid:
Common mistakes to avoid:
Texas is an at-will employment state, meaning either party can terminate the relationship for any lawful reason at any time. This contract includes an Employment Term and Termination clause that respects this standard while outlining notice periods to ensure a smooth transition of escrowed properties and earnest money responsibilities.
Yes. Under Tex. Bus. & Com. Code § 26.01, agreements regarding real estate commissions must be in writing to be enforceable. This document provides a dedicated Compensation and Benefits section to detail salary, commission splits, and payment schedules to prevent future litigation.
In Texas, non-compete agreements are enforceable only if they are ancillary to or part of an otherwise enforceable agreement at the time the agreement is made (Tex. Bus. & Com. Code § 15.50). This contract is drafted to meeting those strict standards by tying restrictive covenants to the protection of confidential client lists and proprietary MLS data.
The contract specifies job duties that mandate compliance with the Fair Housing Act and RESPA. By clearly defining the agent's scope of authority, it helps the brokerage mitigate vicarious liability for Deceptive Trade Practices Act (DTPA) violations or breaches of fiduciary duty.
State laws affect what must be in this document. Pick your jurisdiction.
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