ICON Asset Management
Commercial Real Estate Management
P.O. Box 12902, La Jolla, CA 92039
702-769-7742
REFERRAL FEE AGREEMENT
This Agreement is entered into on this day of , 20 between ICON Asset Management (“COMPANY”), PHILLIP E. BONHAM - BROKER and (“REFERRAL FEE RECIPIENT”).
RECITALS
A. WHEREAS, Broker is duly licensed as a Real Estate Broker in the State of California and maintains an office therein; and,
B. WHEREAS, the Referral Fee Recipient is duly licensed by the State of California as a Real Estate Salesman, Broker/Salesman or Broker (“Referral Fee Recipient”); and
C. WHEREAS, COMPANY and the Referral Fee Recipient desire to establish an independent contractor relationship to compensate Referral Fee Recipient for all referrals which lead to signed property management contracts for Company for the mutual benefit of each party.
AGREEMENTS
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and such other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:
1. Independent Contractor Relationship.
Company and the Referral Fee Recipient hereby establish an independent contractor relationship whereby the Referral Fee Recipient shall be compensated for services performed which result in a signed property management contract due to their efforts.
2. Agent Documentation.
Agent must provide Company with the following items prior to receiving any Referral or Override fees:
a. A copy of Agents California Real Estate license.
b. A copy of Agent’s Social Security card or EIN.
c. A copy of Agents CA driver’s license.
d. An executed copy of IRS Form I-9 and W-4.
e. Copy of automobile insurance policy naming Company as additional insured (required only if Agent is going to show property to clients on behalf of Company)
f. If agent is a salesman or broker/salesman provide name, address, EIN of employing broker where referral fee will be sent.
3. No Authority to Bind Company.
Referral Fee Recipient will have no authority to incur obligations or enter into agreements on Company’s behalf.
4. Payment of Taxes.
The Referral Fee Recipient will not be treated as an employee for federal or state tax purposes with respect to the services rendered under this Agreement. Company shall not withhold or pay income taxes, social security taxes, disability, workers compensation or unemployment insurance payments, or any other assessments, taxes, state or local license fees from the commissions of the Referral Fee Recipient.
5. Independent Contractor agrees to provide the following services:
a. Agent shall receive a fee of ten (10%) percent of the gross collected rental income (after a 2% transaction fee) for the following services Agent provides:
i. Have owner execute a new property management agreement, including addendums (if any) with Company.
ii. Owner must also sign Franchise Tax Board forms concerning withholding of tax or wiaver. (Forms provided)
iii. Provide rental rate comparisons for like property in area to substantiate and set rental price for subject property.
b. Override: Agent receives an additional fee of two (2%) percent of the collected management fee as an override for each new agent referral that results in a signed Referral Agreement with another agent. The new Referral Agreement must include a list of all properties including rental rates. Any subsequent additional properties added by that referred agent after the Agreement is signed will not result in override fees to the referring agent.
6. Transportation.
The Referral Fee Recipient shall furnish their own transportation for the conduct of business at the Referral Fee Recipient’s own expense. Public liability insurance upon such vehicle shall name Company as an additional insured and be obtained by Referral Fee Recipient. The Referral Fee Recipient shall furnish evidence of such insurance to Company within seven calendar days of execution of this Agreement. The additional insured requirement may be waived in writing.
7. Referral Fees.
All management fees shall be payable to the Company. The Referral Fee shall be payable on the 10th day of each month after receipt. In no event shall Company be liable for the Referral Fee Recipient’s share of management fee not received by Company. As long as Referral Recipient continues to be licensed by the CA Department of Real Estate D and as long as Company manages the referred property a Referral Fee will be paid to Recipient. The payment of this referral fee applies only to the specific property identified on the property management agreement. If the Recipient is a Broker the fee will be paid directly to the broker, however, if the recipient is a broker/salesman or salesman the fee will be paid to the Broker and the Broker will pay the broker/salesman or salesman.
8. Property Management Agreements.
All property management contracts in connection with the real estate business shall be taken in the name of ICON Asset Management. The Referral Fee Recipient shall file all contracts obtained by the Referral Fee Recipient with Company within twenty-four (24) hours after the execution and receipt thereof. All executed contracts brought to Company by the Referral Fee Recipient during the course of this relationship shall become the property of Company and remain so upon any termination of the Referral Fee Recipient.
9. Indemnification.
Notwithstanding anything in the Referral Fee Agreement to the contrary, the respective rights and obligations of Company and Referral Fee Recipient with regard to legal claims and lawsuits filed against Company or the Referral Fee Recipient shall be governed solely by the terms and conditions set forth herein.
a. In the event of a lawsuit, judgment, mediation, arbitration or other legal or quasi-legal action brought or incurred by Referral Fee Recipient Company will NOT contribute any potion of the fees requested or judgments entered. Any punitive, exemplary or other such damages or penalties awarded solely against the agent, which arise out of a transaction in which Company acted as the Real Estate Broker and the Referral Fee Recipient represented Company as a real estate Referral Fee Recipient shall be paid solely by the Referral Fee Recipient.
b. The Company will not defend the Referral Fee Recipient and may seek complete indemnity from the Referral Fee Recipient if it is determined that the Referral Fee Recipient was guilty of fraud, intentional misconduct, or conduct which results in punitive damages awarded against the Referral Fee Recipient.
10. Termination.
This Agreement and the relationship between the parties are terminable at will by either party without cause upon written notice.
11. Referral Fee Upon Termination.
If the fee is from a property management contract then Referral Fee Recipient shall receive the last payment for compensation in an amount that is the same as the prior month’s compensation, adjusted only for the amount of commission actually received by Company based on collected rent.
12. Binding Arbitration.
Disputes between Company and Referral Fee Recipient(s): In the event of a dispute between Company and a Referral Fee Recipient(s) that cannot be resolved by the parties, a party to the dispute may apply to the American Arbitration Association for resolution. The decision reached through the arbitration process of said Association shall be binding on all parties. The parties shall bear their own costs and expenses of arbitration.
13. Amendments.
This Agreement may only be amended in writing executed by the parties herein. In the event that any clause in the Amendment conflicts with this Agreement then the Agreement shall prevail.
14. Governing Law.
This Agreement shall be governed by and interpreted pursuant to the laws of the State of California. The proper venue for any action shall be San Diego County.
15. Entire Agreement.
The foregoing constitutes the entire Agreement between the parties, all representations or understandings having been incorporated herein or otherwise. Salesman has received an executed copy of this Agreement.
IN WITNESS WHEREOF, this Agreement has been executed on the date first above written.
REFERRAL FEE RECIPIENT ICON Asset Management
Signature of Referral Fee Recipient Phillip E. Bonham, J. D., Broker
CA DRE License 804772
Printed Name of Referral Fee Recipient
License No. / Expiration Date
Broker's Name
Broker's License No. / Expiration Date