The Commission Addendum

Because commission plans will change more frequently than the contract used for hiring agents, commission plans are best set forth in a separate commission addendum, not in the actual body of the agent's independent contractor agreement. Such an addendum would be referenced in the independent contractor agreement. This allows the use of a standardized independent contractor agreement, such as a form available from a local association of Realtors. If changes, modifications, or removal of a commission plan occurs, agents would sign the new commission addendum in their annual review with the broker. (See the Appendix for a sample commission addendum.)

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