This document helps team leaders and team members structure their independent Team Agreement in a way that aligns with ENRG Realty policies and applicable state real estate laws. It is not a contract, legal advice, or a substitute for your own attorney. Each party is responsible for obtaining independent legal counsel.
Nothing in any Team Agreement may limit, modify, or override the statutory duties or authority of the brokerage or the state broker.
01
Relationship to the Brokerage
All licensees are affiliated with and supervised by ENRG Realty and its designated state broker.
Team leaders are not the supervising or managing broker for any team member.
All brokerage services are performed under the supervision, policies, and procedures of ENRG Realty, regardless of any Team Agreement.
Recommended Clause
“Team Leader and Team Member acknowledge that all real estate brokerage services are performed under the supervision and authority of ENRG Realty and its state broker. Nothing in this Agreement limits or alters the broker’s statutory duties, authority, or right to supervise any licensee.”
02
Items That Must Not Be Assigned to the Team
Team Agreements must not include any of the following provisions.
No clause granting the team leader “exclusive supervision” or “ultimate authority” over the agent’s real estate activities, contracts, negotiations, or compliance decisions.
No language that the agent “reports only to” the team leader for all brokerage activities. Agents must remain under the broker’s supervision per statute and regulation.
Team leader cannot control the agent’s license status, suspend their ability to practice real estate, or dictate compliance outcomes. That remains with the employing broker.
No language suggesting the team leader has final say on risk tolerance, complaint responses, audit handling, or regulatory communications.
No authority for the team leader to approve or disapprove contracts in place of the broker.
No authority to control the status of an agent’s real estate license or their ability to practice under ENRG Realty.
No requirement that agents use non-brokerage-approved forms or addenda at the direction of the team.
No authority to modify brokerage-approved forms or disclosures.
No authority to waive brokerage policies or legal requirements.
No provisions authorizing the team leader to hold trust funds, direct escrow disbursements, or structure side payments for settlement services that could implicate RESPA or state trust account rules.
No “desk fees” or admin charges structured in a way that look like unearned or duplicative fees for settlement services.
No language that the team is a “separate brokerage” or that the team name replaces or supersedes the brokerage name in advertising.
No right for the team to approve advertising in lieu of broker review where state rules require broker oversight of marketing and online presence.
No override of state-required broker review of advertising, marketing, or online profiles.
Recommended Clause
“Team Leader does not act as the supervising or managing broker for any Team Member and may not override or substitute for ENRG Realty’s review of transactions, advertising, or compliance requirements.”
03
Items That May Be Included
Team Agreements may address business and compensation matters, provided they are consistent with brokerage policy and law.
How commissions are split between the team lead and team members, bonuses, referral fee arrangements within the team, and team-funded marketing or ISA costs.
All compensation terms must remain consistent with the brokerage’s independent contractor agreement and compensation policy. Actual disbursement still runs through the brokerage.
Lead distribution rules, floor/phone time assignments, open house coverage, ISA/TC support rules, and minimum activity standards.
These are business expectations, not substitute “brokerage supervision,” and must comply with brokerage and license law.
Marketing support, admin staff, transaction coordinator services, technology platforms, office space, and training programs.
Any TC or office manager involved in transaction files still works under the broker’s policies and ultimate supervision, even if paid by the team.
Training, mentorship, and coaching expectations.
Use of team branding, subject to brokerage branding and advertising rules.
Conditions for joining or leaving the team, internal dispute processes, non-solicitation or narrow non-compete language (subject to state law), and what happens to team-generated leads when someone exits.
Team exit does not affect the agent’s independent relationship with the brokerage or their license status.
Internal dispute resolution procedures between the team leader and team members.
Handling of team-generated leads and listings upon exit, consistent with brokerage policies.
Important: All such provisions remain subject to ENRG Realty’s Independent Contractor Agreement, compensation policies, and advertising/compliance rules.
04
Priority of Law and Brokerage Policy
In any conflict between a Team Agreement, brokerage policies, and applicable law:
State law and regulations control first.
ENRG Realty policies and procedures control over any conflicting team provision.
Recommended Clause
“In the event of any conflict between this Agreement and applicable law or ENRG Realty’s policies and procedures, applicable law and ENRG Realty’s policies and procedures shall control.”
05
Review and Approval Process
As a condition of affiliation:
Team leaders must provide a copy of the final, signed Team Agreement to ENRG Realty for review prior to onboarding or transferring an agent to the team.
ENRG Realty may require changes to any Team Agreement provisions that implicate broker-exclusive duties, conflict with brokerage policies, advertising requirements, or compensation rules, or could reasonably be interpreted as transferring supervisory authority away from the state broker.
The brokerage’s review is solely for regulatory and policy alignment and does not create attorney-client or contractual relationships between ENRG Realty and the parties to the Team Agreement.
Recommended Clause
“The parties acknowledge that ENRG Realty is not a party to this Agreement and does not provide legal advice to either party. Team Leader and Team Member are each advised to consult with their own legal counsel.”
06
Acknowledgment
By entering into a Team Agreement while affiliated with ENRG Realty, all parties acknowledge:
The state broker retains ultimate supervisory responsibility for all licensees.
The team structure is an internal business arrangement and does not alter statutory relationships between the broker and licensees.
All activities must comply with state law, the NAR Code of Ethics, MLS rules, and ENRG Realty policies and procedures.