This addendum shall serve alongside the Independent Contractor Agreement and shall be used to establish the terms, conditions, definitions, and guidelines for representing a commercial transaction while employed at DPR Realty (dba “DPR Commercial”)
Certified Commercial Agent (CCA) – Any actively licensed DPR Realty agent approved by the DPRCC Development Team. The agent will have successfully completing a set number of commercial sale transactions and a total gross sales/lease volume while at DPR Realty, prior to joining DPR Realty, or in a combination of both. (See Level 5 status under the “Commercial Commission and Fee Schedule” defined herein)
Commercial Agent in Training (CAT) – An actively licensed DPR Realty Agent enrolled in the Commercial Community training program. See Commercial Community Training Addendum.
Commercial Community Member (CCM) – A CCM shall be defined as any active DPR Realty Agent acting in any of the following manners: (a) an residential agent referring a commercial client to the DPRCC Management Team; (b) an agent actively enrolled in the DPRCC training & mentorship program, also known as a Commercial Agent in Training (CAT); (c) a Certified Commercial Agent (CCA); or (d) a Core Contributor who has completed the CCM training program and is an approved CCA within DPR.
Commercial Real Estate Transaction – A “Commercial Real Estate Transaction” involving five or more multifamily units; commercial zoning; retail, office, and industrial zoning; a residential property used primarily for business use; or zoning for more than a single residential lot intended for commercial use. When an Agent is the seller or buyer in a commercial real estate transaction, the Agent will be subject to the commission schedule and risk management premium as described herein.
Commercial Referral – A commercial referral shall be defined as a referral to represent the needs of a commercial property owner, purchaser, tenant, landlord, and as identified by the DPRCC Referral Form. Such commercial referral shall be submitted to the DPRCC Management Team for review and assignment to a Core Contributor, a CAT (Commercial Agent in Training), or a CCA (Certified Commercial Agent).
Contributor – A general term to reference any licensed DPR Realty Agent or third party affiliate aiding in the overall growth of the DPR Commercial Community.
Core Contributor – Any actively licensed DPR Realty Agent that has successfully completed the CCM training program, has been approved by the CCM Development Team as a Certified Commercial Agent, and assists DPRCC to help train and mentor CAT members. A Core Contributor shall demonstrate the capacity, character, and willingness to mentor CAT members through 1:1 and/or group interaction and shall facilitate classroom and online educational courses as provided by the DPRCC.
Costar – Costar is a subscription based commercial database required to be held by Certified Commercial Agents and Core Contributors (Level 5). This service is not available to DPR residential agents or Commercial Agents in Training (Level 1-4). See the DPR Costar Addendum for details on pricing and usage.
DPR Commercial Community Development Team (DPRCC) – The DPRCC shall oversee and manage the qualifications, education, and compliance of any CCM within the DPR Commercial Community.
Referring Agent – Any actively licensed real estate agent and/or entity, internal and/or external to DPR Realty, including DPR Realty corporate.
Referral Fee – DPR shall pay a Referring Agent a referral fee of 10% of the gross commissions received by DPR Realty from a transaction as referenced in the DPRCC Referral Form. Such referral fee shall be paid from the gross commissions received by DPR and all remaining commission splits shall be disbursed as per the Commercial Commission and Fee Schedule defined herein. All referrals greater than 10% of gross commission must be approved by DPRCC.
COMMERCIAL COMMISSION AND FEE SCHEDULE
“Broker Deductions”* will consist of:
The applicable risk management premium set forth herein.
The applicable referral fee set forth herein.
Agent will pay DPR Realty a compliance fee of $250.00 per commercial transaction unless Agent uses only approved AAR forms or attorney-drafted contracts/forms and Agent has all parties sign DPR Realty’s indemnification agreements prior to COE or Lease Agreement.
Commercial Commission Split – Commissions received by DPR Realty, from the successful completion of commercial sale and/or lease shall be paid to a DPR Realty Agent in the following manner:
Level 1 – For the first million dollars ($1,000,000) of gross sales and/or lease volume a DPR Realty Agent shall receive fifty percent (50%) of the commissions received by DPR Realty, less Broker Deductions.
Level 2 – From one million and one dollar and up to two million dollars ($1,000,001 – $2,000,000) of gross sales and/or lease volume a DPR Realty Agent shall receive sixty percent (60%) of the commissions received by DPR Realty, less Broker Deductions.
Level 3 – From two million and one dollar and up to three million dollars ($2,000,001 – $3,000,000) of gross sales and/or lease volume a DPR Realty Agent shall receive seventy percent (70%) of the commissions received by DPR Realty, less Broker Deductions.
Level 4 – From three million and one dollar and up to five million dollars ($3,000,001 – $5,000,000) of gross sales and/or lease volume a DPR Realty Agent shall receive eighty percent (80%) of the commissions received by DPR Realty, less Broker Deductions.
Level 5 – For any sales or leases successfully completed after the first five million dollars ($5,000,000) in gross volume (and a minimum of 3 commercial sales transactions) a DPR Realty Agent shall receive ninety percent (90%) of the commissions received by DPR Realty, less Broker Deductions.
NOTE: Any commission splits shall be calculated after Broker Deductions*
(For example: DPR Agent X receives a commercial referral that results in a $10,000.00 commission check received by DPR Realty. On a Level 5 compensation schedule the amount payable to DPR Agent X will be calculated as follows: $10,000.00 gross commission – $1,000 referral fee – $167 risk management premium = $8,833.00 net commissions / 90% split = $7,949.70 payable to DPR Agent X.
RISK MANAGEMENT INSURANCE / DEDUCTIONS
DPR Realty LLC maintains Risk Management Insurance for the coverage of all transactions allowable within the definitions of its policy and provided for in the ICA and herein. Premiums are assessed on a “per agent” basis. If DPR Realty Agents are on both sides of a transaction, the selling and listing agents, each Agent must pay their own side of the risk management premium. The Risk Management premium will not be split between both Agents.
Risk Management Coverage. To obtain coverage under the risk management insurance maintained by DPR Realty, the Agent will pay the following risk management premiums to DPR Realty, for a commercial real estate transaction, as follows:
The risk management premium payable by Agent will be $.50 per $1,000 of gross sales or lease price ($75.00 minimum) for each transaction involving commercial property. Commercial property owned by Agent is individually and collectively referred to as “Agent-Owned Property”. If Agent is the seller in a transaction, Agent agrees to disclose to buyer that Agent is representing only himself or herself in the transaction, and if the buyer insists on representation, Agent agrees that Agent shall take all necessary action to bring a co-broke agent into the transaction. Agent shall make all disclosures required under any applicable federal and state law and regulation.