Issues with Agent Partnerships and Teams

Many agents have formed partnerships, which have a number of advantages.  For example, agents can work together on transactions and share the work.  It also allows agents freedom to go on vacation, but ensure that their clients’ needs are addressed.  It also allows agents with different assets to complement each other.  However, it is important that agents have an appropriate written agreement if they are forming partnerships.  If an agreement is not properly drafted, it can lead to expensive disputes, including litigation.  Agents may claim rights to each other’s commissions after termination of the partnership.  It is suggested that agents retain an attorney to draft their partnership agreements at the outset.  It is worth the expense to avoid a dispute in the event that the partnership eventually dissolves or terminates.

Shannon B. Jones, Partner, sbj@sbj-law.com