Congratulations on receiving your license! For the “set a plan and complete it” types, you have one more goal checked off your “to do” list. For others, this success comes with the simultaneous thought of “now what?” Although each license issued by the Real Estate Examining Board looks the same, your practice will be unique, tailored to your style, skills and goals. 

Selecting your perfect brokerage

Your license entitles you to provide real estate brokerage services once you are associated with an employing broker. The agent-employing broker relationship can influence how you practice and your success in the industry.
Before drafting that first offer for a buyer or listing contract with a seller, the first contract deserving your attention is your contact with your employing broker. Each broker has a different business model and culture. The goal is to find a good fit your personal business plan and style. 

Interview 

Take time to interview several brokers and the agents currently working with the company. Choose wisely. Find out about the broker’s business model and company structure. Would you be working directly with the broker or a broker’s manager? 

Training 

Yes you have your license, but your success will be enhanced if your broker provides additional training and a mentor to guide you. Who is available to new agents to answer their questions and supervise their transactions? Once you find the right fit, get your agreement in writing. 

Independent Contractor Agreement (first contract number 1)

Independent contractor agreements vary from broker to broker. Request and review a copy of the written Independent Contractor Agreement (ICA) during the interview and ask what, if any, terms are negotiable. Take time to review the company policy and procedures manual. A comprehensive ICA includes compensation terms, a statement qualifying you as an independent contractor for income tax purposes, and what happens when you part ways. Even after making what seems to be a good decision about the broker, you may find the fit wasn’t quite right. Know what policies apply and what commission will be paid upon termination. 

Before signing, consider discussing the ICA with your attorney. Keep copies of everything you sign for your records; now is the perfect time to start a good record-keeping system!

Ready for transactions

Congrats! Now that you're affiliated with a terrific brokerage, you're ready for your first transaction. While people skills are invaluable, learning to draft quality written contracts is also essential for your success.

The first offer (first contract number 2) 

When writing your first offer, don’t be afraid to work with your broker or mentor. Listen to the parties and draft the offer to reflect their intentions. The state-approved forms may need to be modified; language may be lined out to reflect the parties’ agreement as long as the original provision is still visible. Additional provisions and disclosures can be added in Additional Provisions or an addendum. The key is to assure the contract is understandable both to the parties and the agents. 

Good Drafting 

Enforceable contingency drafting answers the basic questions of who, what, when and where, and includes a plan for what happens “if not.” Will the offer become null and void upon delivery of written notice, or will the contingency be waived unless a written notice is delivered? Although the “keep it simple” motto is good, a contingency that is too simplistic may not be enforceable. Read the contingency and be sure it clearly indicates who needs to do what, when it needs to be done and what happens if it isn’t? If you are in doubt ask your broker for suggestions. The Wisconsin Real Estate Clauses Manual also is a good resource that includes information about the agent’s role in drafting and hundreds of sample contract provisions. 

Another good practice is to be sure that all blanks are filled in. If a blank giving the number of days for a deadline is not filled in, a dispute may arise and the contract may fall apart. Establish solid date and reasonable deadlines that recognize a logical sequence of events.

Never dissuade a party from consulting legal counsel; saying to the buyer, “contact your attorney” is always appropriate. More contract drafting information is available in the September 2006 Legal Update, “Contract Law Basics,” at www.wra.org/LU0609.

Tracy Rucka is Director of Professional Standards and Practices for the WRA.