***US Agents***
Date: December 18, 2023
To: U.S. Agents of Real Broker, LLC and its affiliates
From: Real Broker, LLC
Re: Real Retirement - Notice of Update to Commission and Fee Schedule Addendum re Revenue Share upon Retirement and other Clarifying Terms; Notice of Update to Agent Stock Purchase Program Addendum to Residential Independent Contractor Agreement
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Real Retirement - Notice of Update to Commission and Fee Schedule Addendum re Revenue Share upon Retirement and other Clarifying Terms
This Notice is to advise you that the below revisions to the Real Broker Commission and Fee Schedule Addendum (“Fee Schedule”) will be made effective ten days from the date hereof.
The Fee Schedule is revised to reflect the language indicated below for the applicable articles thereof. All other terms and conditions of the Fee Schedule will continue to apply.
Article 2.2 of the Fee Schedule shall be revised and replaced with the following language, and the language that is struck will no longer appear in the Article:
2.2 Minimum Transaction Fee. Unless Agent has reached the Agent Cap, the minimum amount that the Company will receive as the Company’s portion of the Commission split is $75. If a Commission on a transaction results in the Company receiving less than $75 as its portion of the Commission split, then Agent will promptly pay the difference so that the Company receives $75 as its Commission split. The Company reserves the right to terminate the Agreement of an Agent who consistently waives a reasonable fee for listings without prior written approval from the Company.
Article 3.2 of the Fee Schedule shall be revised and replaced with the following language, and the language that is struck will no longer appear in the Article:
3.2 Rate of Commission Charged to Clients. Agent may use Agent’s discretion regarding the Commission fees charged to clients for real estate brokerage services provided. Agent will obtain written permission from the Company’s broker responsible for training and supervising Agent in the state(s) in which Agent is licensed (“State Broker”) for any contemplated Commission to a client which is lower than the regular and customary commission charged by a full-service broker in the geographic area in which the Agent does business. ”State Broker” means a supervising Agent in the state(s) in which Agent is licensed.
Article 3.5 of the Fee Schedule shall be revised and replaced with the following language, and the language that is struck will no longer appear in the article:
3.5 Flat Fee or Discount Brokerage. Agent is free to negotiate Agent’s Commission fees, however, Agent shall not advertise by appearing to offer a consistent low flat fee or offering consistent discounts on Agent’s Commission. [Reserved]
Article 3.15 of the Fee Schedule will be deleted as set forth below because it is duplicative of Article 3.12:
A new Article 6.6 shall be added to the Fee Schedule. Article 6.6 shall state as follows:
6.6 Revenue Share Upon Retirement. As of January 1, 2024, if Agent has been a producing agent with the Company for at least three full consecutive years, as determined by the Company in its sole discretion, Agent may continue to receive a specified percentage of Agent’s revenue share payments as specified in the chart below even if Agent is no longer a producing agent after the three full consecutive years, provided (i) Agent continues to be affiliated with the Company or its affiliates through an independent contractor agreement, and (ii) maintains an active real estate license that is affiliated with the Company or its affiliates.
The percentage of revenue share that an agent may receive pursuant to the table above will be a percentage of the amount of revenue share that the agent is receiving at the time a revenue share payment is made. If at any time Agent’s independent contractor agreement with the Company is terminated, for any reason, the Agent will no longer be eligible to receive revenue share payments pursuant to this provision.
Number of Consecutive Years as a Producing Agent | Percentage of Revenue Share that Agent may Receive |
After 3 full consecutive years | 60% |
After 4 full consecutive years | 80% |
After 5 full consecutive years | 100% |
The percentage of revenue share that an agent may receive pursuant to the table above will be a percentage of the amount of revenue share that the agent is receiving at the time a revenue share payment is made. If at any time Agent’s independent contractor agreement with the Company is terminated, for any reason, the Agent will no longer be eligible to receive revenue share payments pursuant to this provision.
Notice of Update to Agent Stock Purchase Program Addendum to Residential Independent Contractor Agreement
This Notice is also to advise you that the Agent Stock Purchase Program Addendum (the “Program”) is being revised for clarity and to reduce the amount that the Company will contribute for the purchase of Bonus Restricted Stock Units to 10% and 20% (depending on whether the Agent has met their Agent Cap) of the amount of commission withheld, as set forth in Section 5 of the revised Program. The Program as revised will become effective on January 1, 2024.
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