Employment Contract
Create a customized employment contract for real estate investor in Texas. At-will employment compliant with Tex. Lab. Code §21.051, Tex. Bus. & Com. Code §15.50 non-comp
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As a real estate investor in Texas, you face unique risks when hiring property managers, acquisition analysts, or leasing agents who access sensitive deal pipelines, tenant data, and 1031 exchange... Read more
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Legal Document
This Employment Contract ("Agreement") is entered into and made effective as of [start_date] (the "Effective Date"), by and between [employer_name] ("Employer") and [employee_name] ("Employee"), collectively referred to herein as the "Parties" and individually as a "Party."
WHEREAS, Employer desires to employ Employee in the capacity of [job_title], and Employee desires to accept such employment, subject to the terms and conditions set forth herein;
WHEREAS, the Parties wish to establish the terms of Employee's employment, including compensation, duties, and obligations, to ensure a clear mutual understanding;
NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
Employer hereby employs Employee in the position of [job_title]. Employee shall perform all duties and responsibilities customarily associated with such position, as well as any additional duties reasonably assigned by Employer from time to time. Employee shall devote their full professional time, attention, and best efforts to the performance of their duties and shall act in the best interests of Employer at all times. Employee shall comply with all policies, procedures, rules, and regulations established by Employer, as may be amended from time to time at Employer's sole discretion.
In consideration of the services rendered by Employee under this Agreement, Employer shall pay Employee a gross annual salary of [salary] (the "Base Salary"), payable on a [pay_frequency] basis in accordance with Employer's standard payroll practices, less all applicable withholdings, deductions, and taxes as required by law. Employer reserves the right to review and adjust Employee's compensation at its discretion, and any such adjustment shall not constitute a new agreement or modification of this Agreement unless set forth in a written amendment signed by both Parties.
Employee may be eligible to participate in any employee benefit plans, programs, and arrangements that Employer makes available to its employees generally, subject to the terms and eligibility requirements of such plans. Such benefits may include, but are not limited to, health insurance, dental and vision coverage, retirement plans, paid time off, and other fringe benefits. Employer reserves the right to modify, amend, or terminate any benefit plan or program at any time, in its sole discretion, with or without notice, subject to applicable law. Nothing in this Agreement shall be construed as a guarantee of any particular benefit.
Employee's primary work location and schedule shall be as set forth in this section, subject to modification by Employer as business needs require.
Employee's employment under this Agreement shall commence on [start_date] (the "Start Date").
This Agreement and Employee's employment may be terminated under the following circumstances:
Employee acknowledges that during the course of employment, Employee will have access to and may acquire knowledge of confidential and proprietary information belonging to Employer, including but not limited to trade secrets, business plans, financial information, customer lists, marketing strategies, product designs, software, technical data, and other information not generally known to the public (collectively, "Confidential Information"). Employee agrees to hold all Confidential Information in strict confidence and not to disclose, publish, or otherwise reveal any Confidential Information to any third party during or after employment, except as required in the performance of Employee's duties or as authorized in writing by Employer. Employee agrees not to use any Confidential Information for Employee's own benefit or for the benefit of any third party. This obligation of confidentiality shall survive the termination of this Agreement and Employee's employment for any reason.
During the term of Employee's employment and for a period of twelve (12) months following the termination of employment for any reason, Employee shall not, directly or indirectly: (a) solicit, recruit, or attempt to induce any employee, contractor, or consultant of Employer to leave Employer's employment or engagement; or (b) solicit, divert, or attempt to divert any customer, client, or business relationship of Employer for the purpose of providing products or services that are competitive with those offered by Employer. Employee acknowledges that this non-solicitation covenant is reasonable in scope and duration and is necessary to protect Employer's legitimate business interests.
Upon termination of employment for any reason, or at any time upon Employer's request, Employee shall immediately return to Employer all property belonging to Employer, including but not limited to keys, access cards, identification badges, laptops, mobile devices, documents, files, records, manuals, software, data (in any form or medium), and any other materials or equipment provided to Employee or created by Employee during the course of employment. Employee shall not retain any copies, duplicates, reproductions, or excerpts of any Employer property or Confidential Information.
This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of [state_law], without regard to its conflict of laws principles. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or validity thereof, shall be resolved exclusively in the state or federal courts located in the State of [state_law], and each Party hereby consents to the personal jurisdiction of such courts.
This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written. No amendment or modification of this Agreement shall be valid or binding unless set forth in writing and signed by both Parties. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect. The failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of that Party's right to enforce that provision or any other provision in the future. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. The headings in this Agreement are for convenience only and shall not affect the interpretation of any provision.
Employment under this agreement shall be at-will as recognized under Texas common law, allowing either party to terminate the relationship at any time, with or without cause, subject only to the prohibitions against discrimination set forth in Tex. Lab. Code §21.051. The Employee acknowledges that they will not engage in any conduct that violates the Fair Housing Act enforced by HUD or the Real Estate Settlement Procedures Act (RESPA) administered by the CFPB while performing leasing, tenant screening, or property management duties for the Employer's real estate portfolio. Any violation of these statutes, including but not limited to discriminatory tenant selection based on protected classes or failure to provide accurate closing cost disclosures, shall constitute immediate grounds for termination for cause. The Employee further warrants that all actions related to zoning compliance, due diligence on potential acquisitions, and mitigation of tenant liability will conform to local municipal zoning regulations and the Employer's risk management policies. This clause is essential for real estate investors in Texas to maintain compliance while preserving flexibility in a volatile market.
Pursuant to Tex. Bus. & Com. Code §15.50, the non-compete and non-solicitation restrictions contained herein are ancillary to and part of this otherwise enforceable employment contract for real estate investor in Texas. For a period of twelve (12) months following termination, the Employee shall not, directly or indirectly, solicit any tenants, investors, or joint venture partners identified during employment, nor utilize any proprietary information such as cap rate models, cash-on-cash return analyses, 1031 exchange pipelines, or LTV financing strategies for any competing real estate investment activity within the metropolitan statistical areas where the Employer maintains properties. These restrictions are narrowly tailored to protect the Employer's legitimate business interests in trade secrets and client relationships while complying with Texas law. The Employee acknowledges that violation of this provision would cause irreparable harm justifying injunctive relief.
The Employee represents and warrants that they hold and will maintain throughout the term of employment any licenses required under Texas law for the performance of their duties, including but not limited to a Texas Real Estate Broker License or property manager certification where applicable. This warranty is made in accordance with the licensing requirements referenced in the Texas Occupations Code and is material to the formation of this employment contract for real estate investor in Texas. Failure to maintain such licenses or any violation of the Securities Act of 1933 (if the Employee participates in pooled investment offerings) shall constitute a material breach. The Employee agrees to indemnify the Employer for any fines, penalties, or liabilities arising from the Employee's failure to comply with zoning regulations, the Fair Housing Act, or RESPA during the course of their employment. This provision mitigates the common liabilities faced by Texas real estate investors including tenant claims and regulatory enforcement actions.
The Employee agrees to exercise reasonable care in performing due diligence, property inspections, and zoning compliance reviews prior to any acquisition recommendations. In the event a property defect or zoning violation is discovered post-acquisition that could have been identified through standard industry practices, the Employee shall cooperate fully in any resulting claims and acknowledges that the Employer may seek reimbursement for losses attributable to the Employee's negligence. This clause is designed to address common liabilities for real estate investors in Texas such as tenant injury claims and municipal fines. It incorporates 'as-is' inspection standards and requires adherence to local zoning board requirements. Nothing in this provision shall be construed to limit the Employer's obligations under the Texas Homestead Law or community property statutes, but the Employee assumes responsibility for accurate representation of maintenance responsibilities and repair obligations in lease documents prepared under their direction.
[property management scope]
[investment analysis responsibilities]
[confidential information types]
[termination for cause examples]
IN WITNESS WHEREOF, the Parties have executed this Employment Contract as of the date first written above, intending to be legally bound hereby.
Employer
Name: Employer
Date: ___________________
Employee
Name: Employee
Date: ___________________
As a real estate investor in Texas, you face unique risks when hiring property managers, acquisition analysts, or leasing agents who access sensitive deal pipelines, tenant data, and 1031 exchange strategies. Imagine a leasing coordinator you hired last year leaves to join a competitor and immediately solicits your largest commercial tenants using knowledge gained from your cap rate models and cash-on-cash return projections. Without a properly drafted employment contract for real estate investor in Texas, you risk costly litigation over trade secrets, zoning compliance data, and joint venture agreements. Texas is an at-will employment state, yet Tex. Lab. Code §21.051 still prohibits discrimination, while Tex. Bus. & Com. Code §15.50 imposes strict requirements on enforceable non-compete agreements that must be ancillary to an otherwise enforceable contract. Common pain points include disputes over maintenance responsibilities in commercial leases, ambiguities in repair obligations between landlord and tenant, and disagreements regarding earnest money deposits when financing contingencies fail. This document protects your portfolio by clearly defining job duties related to due diligence, LTV ratio analysis, and Fair Housing Act compliance under HUD rules. It also addresses tenant liability mitigation through comprehensive lease oversight and zoning violation prevention by requiring employees to conduct thorough land-use research before acquisitions. By incorporating Texas-specific provisions, you reduce exposure to market volatility, property defects, and potential securities law violations if pooling investor funds under the Securities Act of 1933. Don't let a handshake deal turn into a courtroom battle—secure your real estate operations today with a contract tailored for Texas investors.
Beyond the standard employment contract sections, this template adds fields specific to Real Estate Investor:
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.
Tenant liability
Mitigated through comprehensive lease agreements that clearly outline tenant responsibilities, liabilities, and landlord’s rights.
Zoning violations
Ensured compliance by conducting thorough land use research and consulting with legal professionals for zoning compliance prior to property acquisition.
Market volatility risk
Utilized contracts like certain types of insurance and incorporating clauses that allow flexibility in lease terms or exit strategies.
Property defects and maintenance
Carried out due diligence and property inspections prior to purchase and included as-is clauses where appropriate to limit investor liability.
For this employment contract to be legally valid:
Common mistakes to avoid:
Securities Act of 1933
If a real estate investment involves pooling funds from multiple investors, it may be considered a 'security' and subject to securities regulation requirements, including registration and disclosure obligations.
Enforced by U.S. Securities and Exchange Commission (SEC)
Real Estate Settlement Procedures Act (RESPA)
Governs the practices in real estate settlements and transactions, ensuring transparency of costs and costs allocations between all parties involved.
Enforced by Consumer Financial Protection Bureau (CFPB)
Fair Housing Act
Prohibits discrimination in housing sales, rentals, and financing based on race, color, religion, sex, or national origin; real estate investors who rent properties must comply with this act.
Enforced by U.S. Department of Housing and Urban Development (HUD)
Zoning Regulations
Regulations that determine how property in specific geographic zones can be used. Compliance with local zoning laws is essential for real estate investors to ensure property use aligns with municipal plans.
Enforced by Local Municipalities and Zoning Boards
Recommended coverage: General Liability Insurance · Property Insurance · Landlord Insurance · Errors & Omissions (E&O) Insurance · Umbrella Insurance
Yes. Texas is an at-will employment state, meaning either party can terminate the relationship at any time without cause unless the contract specifies otherwise. However, Tex. Lab. Code §21.051 still prohibits discrimination based on race, color, disability, religion, sex, national origin, or age. For real estate investors, this is critical when employees handle tenant screenings to avoid Fair Housing Act violations enforced by HUD. Including clear termination provisions in your employment contract for real estate investor in Texas helps manage notice periods and severance while preserving at-will status and reducing wrongful termination claims.
Under Tex. Bus. & Com. Code §15.50, non-compete agreements must be ancillary to or part of an otherwise enforceable agreement and must be reasonable in time, geographic scope, and activity restrained. For a real estate investor in Texas, this means limiting former employees from soliciting your tenants or using proprietary cap rate models and 1031 exchange pipelines for a defined period within specific metro areas. Courts will not enforce overly broad restrictions. Including tailored non-solicitation language tied to your unique investment workflows protects your business without risking unenforceability.
Real estate investors in Texas must address zoning violations, tenant liability, and compliance with the Real Estate Settlement Procedures Act (RESPA). Employees often perform due diligence on LTV ratios, inspect for property defects, and ensure adherence to local zoning regulations. The employment contract for real estate investor in Texas should require warranties that staff will maintain confidentiality of financing terms and follow the Fair Housing Act. Including clauses on maintenance responsibilities and repair obligations helps prevent disputes common in commercial leases and aligns with Tex. Bus. & Com. Code §26.01 Statute of Frauds requirements for certain agreements.
Yes, if their duties involve brokerage or property management. Texas real estate investors typically do not need licenses themselves unless acting as brokers, but employees performing leasing or management functions may require a state-specific property manager’s license or real estate broker’s license under Texas Occupations Code. Your employment contract for real estate investor in Texas should include a representation that the employee holds and will maintain all required licenses, with immediate termination rights for non-compliance to protect against regulatory violations and tenant liability claims.
State laws affect what must be in this document. Pick your jurisdiction.
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