Agent and Loan Officer Contract

THIS AGREEMENT made in the State of California and entered into this date

at San Diego, California, between Pacific Home Brokers Inc. (hereinafter referred to as the “Broker”) and 
(hereinafter referred to as the “Contractor” or “Independent Contractor”).
The Broker and Independent Contractor agree Broker is a licensed real estate broker and has a mortgage loan originator license in the State of California. Contractor agrees all DBAs that Broker owns under Pacific Home Brokers Inc. are incorporated into this agreement for which Contractor uses with Broker approval.

INDEPENDENT CONTRACTOR: Independent Contractor represents that he or she is a duly licensed real estate salesperson or broker in the state of California and will maintain their real estate license in good standing with the California Department of Real Estate during the term of this agreement. Contractor will do business as Pacific Home Brokers a DBA of Pacific Home Brokers Inc. unless Broker approves another DBA. Contractor will always conduct him/herself in full compliance with the Statutes of California and the Rules and Regulations of the Department of Real Estate in a way which reflects the high standards of the Broker.

INDEPENDENT CONTRACTOR STATUS: Contractor agrees to work with Broker as an Independent Contractor, and not as a w2 employee. All costs and obligations incurred by Contractor in conducting his/her independent business shall be paid solely by Contractor, who will hold Broker harmless from any and all costs and obligations. Contractor will act independently as to the management of his/her time and efforts, and will be responsible for timely payment of all of his/her own expenses under Broker supervision. Such as industry association dues, licensing renewals, cellular telephones, automobile insurance etc., as they are incurred. Broker will not withhold any Federal or State Income Tax, Social Security (FICA) or Unemployment (FUTA) taxes from Contractor’s commissions paid. Contractor is personally responsible for paying any and all Federal and State Income, Social Security and other taxes, and for maintaining all expense records as required by law, and represents to Broker that all such amounts will be withheld and paid when due. Contractor shall indemnify and hold Broker harmless from any liability or costs thereof. Broker will provide Contractor with an IRS Form 1099 NEC at the end of each calendar year. Contractor agrees to receive their 1099 NEC form via email from Broker. Contractor is considered an independent contractor for purposes of unemployment. Broker and Contractor acknowledge that this agreement does not constitute a w2 employment agreement by either party, shall not be construed as a partnership, and Broker shall not be liable for any obligation, injury, disability or liability incurred by Contractor.

REAL ESTATE COMMISSIONS AND FEES: Compensation and commission splits paid to Contractor are as follows: Contractor will receive all commissions paid to Broker minus a $125.00 fee for their contribution to the Broker's errors and omissions insurance policy premium per transaction. Said compensation is to be paid to Contractor out of funds actually collected by Broker. Dual representation by Contractor will have a fee of $225.00 for Broker's errors and omissions insurance policy premium per transaction. Contractor can pay an annual one time fee of $349 for their contribution to the Broker's errors and omissions insurance policy premium instead of $125 per transaction for real estate transactions only.

Contractor may receive his/her commission directly from escrow on a real estate transaction if Contractor worked with the Broker’s support through and support verifies the Contractor turned in a complete file 72 hours before close of escrow. A complete file includes all documents outlined in the company transaction checklist and all documents must be fully executed and complete.

LOAN ORIGINATION COMMISSIONS AND FEES: The Broker and Independent Contractor agree as follows: Broker is doing business as Pacific Home Brokers Inc. DBA Pacific Property Loans in the State of California.

For closed loans, a Contractor with a Mortgage Loan Originator license will receive the balance of the loan compensation they are entitled to minus a $125.00 fee for their contribution to the Broker's errors and omissions insurance policy premium and a company fee of $399.00. The total gross compensation figure the Contractor is entitled to is the listed percentage which is posted in the loan officer resources lender page on under brokered loans on the lender list.

Contractor with Mortgage Loan Originator license will be paid directly from escrow with escrow approval on closed loans.

RECRUITMENT PASSIVE INCOME PROGRAM: A Contractor, whose license is active with Broker and who successfully refers another licensed real estate Contractor that signs a contract with Broker shall be added as a referral agent to the referred Contractor's transactions and earn $100 dollars when the referred Contractor closes a real estate transaction at Broker expense.

LEASE AGREEMENTS: The Broker’s fees for residential leases are 7% with a minimum fee of $399.00. Contractor must have a full file in accordance with the company lease transaction checklist. Contractor cannot have ownership interest in the property.

REFERRALS: The Broker’s fees for residential referrals are 7% with a minimum fee of $399.00. Referral fees earned by Contractor must be paid to Broker. Contractor cannot directly receive a referral fee.

COMMERCIAL TRANSACTIONS: If Contractor represents either a buyer or a seller in a commercial transaction, the Contractor will receive 95% of all commission received by the Broker. Contractor must pay $125 towards the Broker's errors and omissions insurance policy premium per transaction. Dual representation by Contractor will have a fee of $225.00 towards the Broker's errors and omissions insurance policy premium per transaction. Contractor will receive 95% of all commission received by the Broker on commercial leases with a minimum Broker fee of $595.00. The commission split is based off the total commission offered by the seller prior to any rebates, credits, or commission that is negotiated down from the original commission offered.

The Broker's fees for commercial referrals are 7% with a minimum fee of $595.00.

The following are considered commercial transactions for commission and errors and insurance purposes and is not limited to the following: 5 or more unit properties, mixed use properties, vacant land or residential properties with land over 5 acres and industrial properties. All acts must happen in escrow before close unless Broker has approved otherwise.

INDEPENDENT CONTRACTOR ACTIVITIES AND DUTIES: Independent Contractor agrees to limit his or her real estate activity to the solicitation of listings and/or buyers and facilitating the sale or purchase of real estate.

Prohibited Contractor activities include but are not limited to: property management, loan modification, legal consultation, tax advice, leasing property the Contractor owns in the Broker's name, business sales, arranging or managing the construction work on a client's property, hiring contractors for clients that the clients did not choose themselves, taking an equity position in a client's property, using Contractor funds to repair a property in exchange for commission upon sale of the property, acting in the capacity as a building contractor on any client's property even if licensed as a building contractor, recommending trades people that Contractor has a family or business relationship with, guaranteeing any service, advertising buying the homes Contractor has listed if they don't sell, working with wholesaling buyer clients who need to assign the contract in order to close, working with a buyer client who does not have proof of funds in their name or their companies name, bulk sale transactions where the Contractor is trying to sell more than one property with more than one APN on the same contract unless the second property is vacant land adjacent to the other property that the same seller owns, and lease option purchases. Activities that require Broker written permission include: processing loans and providing Broker Price Opinions.

Contractor shall not engage in activity that is illegal, unethical or that could lead to their real estate license being suspended or revoked. Any issues that are progressing to threats of legal action arising from your transaction need to be conveyed to the Broker within 24 hours. All acts must happen in escrow before close unless Broker has approved otherwise.

Contractor cannot directly receive any compensation for performing real estate activities or loan activities without Broker’s signed approval to escrow.

All property listings, agreements, acts or actions for performance of licensed acts, which are taken or performed in connections with this Agreement, shall be taken and performed in the name of the Broker. Contractor agrees and hereby grants all right and title of these listings to Broker. Independent Contractor shall have no authority to bind broker to any agreement, representation or promise and Broker will not be liable for any liability or obligation incurred by Independent Contractor unless Broker specifically authorizes it in writing.

Independent Contractor shall be familiar and comply with all applicable laws, policies and procedures including, but not limited to, anti-discrimination laws and restrictions against giving or receiving referral fees to title companies, inspection companies etc.

Independent Contractor is not to personally use or disclose or furnish, directly or indirectly, to any person, firm, company or Broker engaged in the real estate business, any confidential information or property rights of Broker, as acquired by Independent Contractor as a result of the relationship hereby established.

RISK MANAGEMENT: To cover the increased liability for unique and high sales priced properties and loans the Broker will charge Contractor in addition to the $125 fee towards the errors and omissions insurance premium the following fees if they apply: on property sales greater than $1,200,000, an additional $50.00 fee per $100,000 in purchase price. On property sales with commissions above $40,000 or sales prices over 3 million, the errors and omissions insurance premium fee will be 10% of the commission agreement amount with Broker and the party paying the commission before any agent credits to client. The Broker will charge a 3% fee for any commissions over $25,000 on closed loans. The Broker will charge 10% on the portion of referral transaction commission that is greater than $10,000.

All errors and omissions fees collected for transactions are used to cover the cost of the Broker's errors and omission insurance policy's annual premium and may or may not be used for covering individual Contractor transactions or actions. Contractor shall not commit acts for which the Department of Real Estate of the State of California (DRE), RESPA or HUD are authorized to restrict, suspend or revoke Contractor’s license or impose other discipline, under the California Business and Professions Code Section 10176 or 10177 or other applicable provisions of State or Federal Law. In the event there is a demand, suit, claim, accusation or investigation made by an attorney, party to the contracts, individual, company, corporation and/or any governing body, such as the Department of Real Estate pertaining to Contractor's actions or transactions, Contractor will be responsible for and hereby agrees to pay a legal defense payment of $5,000 to Broker. The legal defense payment is payable and due at the time the demand, suit, claim, accusation or investigation is made aware to Broker and is non refundable.  If the Broker finds that the Contractor's actions violated the above provisions based on the evidence the Broker finds or evidence that is reported to Broker or Broker finds the Contractor is at fault for any demand, suit, claim, accusation or investigation, the broker will retain any commissions to be received by Broker or the Contractor will return any commissions received to the Broker for purposes of defending the demand, suit, claim, accusation or investigation at Broker's discretion. 


Funds collected from Contractor will be used to cover attorney's fees as a result of defending or responding to a demand, suit, claim, accusation or investigation or towards the deductible on the Broker's errors and omission insurance's policy at Broker discretion. Broker will either contract an attorney, seek attorney counsel with Broker response or pay the deductible with the Broker's errors and omission insurance carrier at Broker discretion for the benefit of the Broker and the Contractor.  An insurance claim may NOT be used at Broker discretion depending on the facts of the demand, suit, claim, accusation or investigation and/or if the issue may not be covered under the insurance policy terms. If the Broker finds that the facts show that their may not be an error or omission by Contractor or if Broker finds Contractor may not be at fault, Broker may choose to defend or respond with the counsel of Broker's choice or Broker may respond after counsel advice. Contractor will be responsible for and hereby agrees to pay for any additional legal fees incurred during the process until settlement, resolution or judgment and any resulting costs to Broker to include but not limited to: paying the judgment against Broker for Contractor's transaction if an insurance carrier is not used, paying the following year's difference in the premium increase for the Broker's errors and omission policy renewal as a result of having filed a claim with the company's errors and omission carrier for Contractor, paying for any settlement and any other additional costs related to the defense or response. Broker may withhold commissions from current or future Contractor transactions at Broker discretion to cover the costs of responding or defending a demand, suit, claim, accusation or investigation.


COMPANY POLICY AND PROCEDURES: Contractor will be responsible for adhering to the company policies and procedures to include the four step Transaction Process located on the company resources page online and these online company polices and procedures, the contents of  the Company website located at and the Company website located at are incorporated into this agreement. Contractor agrees that changes or updates made by Broker to the contents of the company websites and company policy and procedures manual will be adhered to by Contractor and will incorporated into this agreement. 


Contractor is responsible for ensuring all acts are complete prior to recording to include agent credits to their clients and needed signatures on documents. No acts shall take place after recording without Broker permission. Contractor is responsible for any outstanding Broker fees not paid by their client if any. Contractors conducting a loan must adhere to the company policies and procedures to include our online Loan Preapproval Process located on the company resources page online and the online policies and procedures are incorporated into this agreement. Failure to follow company procedures will be considered negligence by the Broker. Contractor is responsible for returning any loan commissions in the event of an early payoff where a lender is asking for the return of commission. Contractor is responsible for any funds to include the loan amount in the event of a repurchase of a loan that a lender or other party is asking the Broker to repurchase.


TRUST FUNDS: Contractor will not handle trust funds. Trust funds include buyer deposit checks and lease checks. Broker does not maintain a trust account for client escrow deposits for other outside escrow companies or for property management.

DOCUMENTS: All documents and files related to transactions, listings and leads are the property of the Broker. Contractor is responsible to store all documents in a secure place. Contractor must provide the Broker with a completed file with all necessary documents on each closed transaction. Commissions earned by Contractor shall not be released to contractor until a completed file is delivered to and approved by Broker. Any document or in house form that is asked for via email from the Broker or the Broker's support staff prior to recording becomes part of the necessary items for a complete file. Contractor must be accessible to Broker via phone or email and respond to Broker within 24 hours. All contracts must be on CAR zipForm® contracts unless approved by Broker.

ADVERTISING: All advertising done by Contractor needs to be approved by the Broker, shall not violate any state or federal laws and shall fall within the guidelines set by the California Department of Real Estate. Contractor is expected to be familiar with these rules, laws and guidelines. No telephone solicitations shall be made by Contractor to people who have registered their telephone numbers on a national do not call registry. Broker is not responsible or liable for any advertising done by Contractor and Contractor agrees to hold broker harmless for any costs or damages, legal or otherwise, that may occur from such advertising.

FICTITIOUS BUSINESS NAMES AND LOGOS: All marketing material which includes but is not limited to signage, stationary and websites, the Contractor shall use the name “Pacific Home Brokers” or "Pacific Property Loans" and corresponding logo, unless Contractor has made an agreement with Broker to use a DBA of their own that is filed by the Broker with the California Department of Real Estate. Broker retains exclusive rights to the Pacific Home Brokers and Pacific Property Loans name and logos. Contractor agrees to discontinue all uses of the Pacific Home Brokers and Pacific Property Loans name and logos upon termination of this agreement.

AUTOMOBILE INSURANCE: Contractor to maintain in force and effect personal automobile liability insurance. If Contractor has an automobile accident, Contractor indemnifies and holds Broker harmless from any claims or demands and is liable for any suit brought by the client.

HOLD HARMLESS: Contractor agrees that, for all actions that Contractor does during his/her contractual relationship with Broker, Contractor will forever indemnify and hold harmless Broker, their heirs, successors, spouses and assigns, from any and all claims, complaints, causes of action, Realtor arbitration demands, damages and liabilities of every kind whatsoever, whether known or unknown, including without limitation of any action, omission, negligence or any other basis of liability or complaint, in any forum, brought by and third party against Broker. No action or complaint arising out of a real estate transaction in which Broker was involved may be brought by Contractor before anybody, against any third party, without prior written consent of Broker.

DISPUTE RESOLUTION: Mediation is recommended as a method of resolving disputes arising out of this agreement between Broker and Contractor. If mediation is not mutually agreed upon then arbitration is mandatory. All disputes or claims between Contractor and other licensee(s) associated with Broker, or between Contractor and the Association of Realtors of which all such disputing parties are members for arbitration pursuant to the provisions of its Bylaws, as may be amended from time to time, are incorporated as part of this Agreement by reference. If the bylaws of the Association do not cover arbitration of the dispute, or if the Association declines jurisdiction over the dispute, then arbitration shall be pursuant to the rules of California law. The Federal Arbitration Act, Title 9, U.S. Code, Section 1, et seq., shall govern this Agreement. In the event of a lawsuit or arbitration between Broker and Contractor, Contractor agrees that the venue will be in a San Diego County court or with a San Diego County arbitrator.

WORKING PLACE: Contractor may work from any place of Contractor’s choice. The Broker’s office is available by appointment only.

AGREEMENT TERMINATION: Either party may terminate this Agreement at any time. This agreement shall govern all disputes and claims even after its termination. Upon termination of this Agreement by Broker or Contractor, all financial obligations owed to Broker that are imposed by terms of this Agreement shall be paid. Any pending transaction will be refereed to Contractor's new broker of record. All Broker fees for all pending transactions shall be paid in full by Contractor to include client fees owed to Broker and shall be paid from the commission received by Broker on any of Contractor's current closed or pending transactions upon termination regardless if the transaction has closed.

FAILURE TO COMPLETE PENDING TRANSACTION: In the event Contractor, due to early termination of this agreement by Contractor or Broker, health related issues, negligence identified by Broker, or any other reason Contractor fails to complete a pending transaction, broker shall make arrangements for the completion of the transaction. Broker and/or another Contractor assigned to complete the transaction shall receive fair compensation for their duties performed. This compensation is to be deducted from the Contractor’s portion of the commission who failed to complete the transaction or was removed from the transaction by Broker. Contractor agrees that the Broker will decide the commission disbursement. 



ACTIVITY REPORTING: Contractor is required to notify the Broker within 72 hours of a an executed listing agreement, a fully executed purchase agreement, or executed lease listing or lease agreement by the use of an online form located on the Pacific Home Brokers company website under the agent login tab on the following page: If the Contractor fails to notify the Broker of an executed contract for a lease, listing or purchase or the Contractor allows an escrow to close without a complete file while working with the Broker support through, Broker may retain up to 30% of the Contractors commission and withhold the Contractor’s remaining commissions until a complete file is received. If the Contractor does not notify the Broker of a transaction or send in any paperwork at all and the transaction closes without Broker's support receiving paperwork prior to the close of escrow, the Contractor’s commission will be forfeited or the Broker will not claim representation for the transaction and return the commission to the seller or escrow. 


TRANSACTION COORDINATION: Contractor can coordinate their own file or use a transaction coordinator of their choice. Contractor’s transaction coordinator may liaison with Broker support. If Contractor would like to use the Broker’s transaction coordinator, a $395.00 fee will be charged payable from the Contractor’s commissions. An additional $150.00 fee will be added for dual sided transactions. Contractor must turn in required paperwork outlined on the Broker checklist via support at for all transactions.

NOTICES: Any notice required to be given under the provisions of this agreement other than Activity Reporting shall be given in writing. The following shall be acceptable forms of delivery: 1) By registered or certified mail enclosing to the address set forth under the respective signatures herein below, or to such other address as either party hereto shall designate by such notice. Any such notice given hereunder shall be effective as of the time it is deposited in the United States Mails. 2) Via Email. Email notice shall only be valid if the receiver acknowledges receipt of such email with a reply email. The effective time shall be the time the receiver sends the reply acknowledgment.

WAIVER: Waiver of, or failure to strictly enforce, by the parties hereto any of the provisions of this agreement or any default hereunder shall not constitute or operate as a waiver of such parties’ right to demand strict performance of this or any other provision hereof or any other default hereunder.

AGREEMENTS AND AMENDMENTS: This agreement along with the terms in the Company Policy and
Procedures Manual, the contents of and the contents of embodies the entire agreement between the parties hereto with relation to the subject matter hereof and supersedes any previous agreement or understanding, whether verbal or otherwise, with relation hereto. The Broker's Company Policy and Procedures Manual and the agent and the loan officer resources located at and can be amended, changed, revised, or altered by Broker. Notification of the changes will be sent by email to Contractor. Contractor is responsible for checking their email and notifying Broker if their email account has changed. Brokers act of email delivery serves as notification to Contractor. This agreement hereby notifies Contractor and the Contractor agrees to read the contents of the Company Policy and Procedures Manual and review the contents of and PRIOR to starting a loan or real estate transaction so Contractor is aware of Broker policies and procedures that are part of Contractor's agreement with Broker.


Each paragraph of this agreement shall be and remain separate from and independent of and severable from all and any other paragraphs herein except where otherwise indicated by the context of the agreement. The decision or declaration that one or more of the paragraphs are null and void shall have no effect on the remaining paragraphs of this agreement.


Agent Full Name:  
Phone Number:  
Home Address:  
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Social Security #:  
DRE License #:  
NMLS Loan License # or N/A:  
Name of REALTOR Association or N/A:  
Driver’s License #:  
Date of Birth: 

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Document name: Agent and Loan Officer Contract
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June 19, 2015 12:18 am +00Agent and Loan Officer Contract Uploaded by Mike King - IP