3.1 Independent Contractor #
You have signed an Independent Contractor Agreement with the Company and are associated with this Company as an independent contractor. You do not have an employee-employer relationship with this Company. The Company, however, has the responsibility under state real estate law to supervise the conduct of salespersons operating under the Company license. You are considered to be an independent contractor for tax purposes. You are also considered an independent contractor for purposes of Unemployment Insurance. You are not subject to the minimum wage laws. The Company will provide Workers’ Compensation insurance for you.
The Independent Contractor Agreement with the Company sets forth the duties and responsibilities of both parties. This agreement includes the following:
- The terms of compensation for work performed during the time of affiliation with the Company or for work in progress but not completed prior to termination of affiliation with the Company.
- After termination of your association with AARE, all active listings, pending sales, and buyer agency agreements the Associate obtained during affiliation with AARE may be completed by another Company Associate. Compensation to Associates on those transactions will be at the sole discretion of the Company.
- Delivery by the Associate of all files and documents pertaining to listings, company leads, and pending transactions shall be provided to the Company upon request or termination of the Independent Contractor Agreement.
3.2 Tax Filing Requirements #
The Company is not responsible or liable for deduction of social security, income, or unemployment taxes for any brokerage sales and related income. Each Associate is responsible for maintaining all business and financial records necessary for purposes of reporting income as required by state and federal agencies and for reporting income as required by law. The Company’s obligation is limited to providing a 1099 Miscellaneous Income form to you and to government agencies as required. If you have a S-Corp or LLC, only a breakdown of your income through AARE will be provided, not a 1099.
Unemployment Taxes: As an independent contractor, the Associate is not covered under state or federal unemployment laws. Accordingly, the Company does not pay unemployment taxes on the earnings of its Associates.
3.3 Broker-Associates #
If you are a Broker-Associate, you may not associate with another broker or company nor engage in real estate brokerage transactions in your own name instead of the Company’s name, without the prior written consent of your Manager or Broker.
3.4 Company Authorization to Terminate Agreements #
Authority to terminate a listing agreement, buyer/seller representation agreement, other legal or agency agreements, or make amendments to the agreement that alter the terms and/or change the amount of compensation established in the agreement is prohibited without Broker approval.
3.5 At-Will Status #
You are associated with the Company for an unspecified term on an at-will basis. Except where it is otherwise expressly agreed in writing with the Company, either party may terminate your association at any time with or without cause or reason.