B&B Partner, Craig D. Levey, was recently interviewed for the “Real Tea” podcast, which streams on YouTube, Spotify, and Apple Podcasts. Levey, who often reviews and negotiates agreements on behalf of real estate agents and brokerages, sat down with Nicole Rideout Hartwick, Chief Strategy Officer at Gibson Sotheby’s International Realty, for an in-depth interview on agent contracts.
Ms. Hartwick, who spills the tea on everything real estate, asked Levey his thoughts on legal tips agents should consider when reviewing contracts and/or negotiating with a new brokerage. Levey explained that, too often, he speaks with agents who have executed an agreement despite not understanding the agreed-to terms. Levey outlined common pitfalls in agent contracts, including claw back provisions for incentive splits and/or marketing dollars, one-sided boilerplate language, and arbitration provisions.
Levey also provided feedback to real estate professionals creating their own team of agents. He stressed that agents should have a full understanding of the existing brokerage agreements and forms, to ensure compliance. He also stressed that agents must be cautious not to divert from brokerage documents in any way, as this could lead to legal exposure. Finally, Levey explained the potential liability if an individual is wrongly classified as independent contractor rather than an employee.
The attorneys at B&B routinely review and draft contracts on behalf of real estate agents.
You can listen to the full podcast here: Real Tea Full Podcast with Craig Levey_EP 1.mp4 – Google Drive