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  2. Key Realty Policy Manual

Section 10: Fees

10.1 Fee Policy for Key Agents

10.2 Key Agent Commission Program Election Policy

10.3 Expenditure of Office Funds

10.4 Associate Expenses 

10.5 Financial Liability of Salesperson

10.6 Automobile Insurance


10.1 Fee Policy for Key Agents

There are two fees typically collected from Key Agents; The Annual Agent Renewal (AAR) and the Annual Brokerage Fee (Cap).


10.1.2 Annual Brokerage Fee payment options - 3 Ways to Pay your Annual Cap

Associates may choose one of three options for payment of the Annual Brokerage Fee:

  1. 50/50:  For the 50/50 program, 50% of any commission earned by the agent will be applied to their annual brokerage fee until they have paid their fee in full.  All subsequent commissions will be paid to the associate at 100% until their next fiscal year. 
  2. Monthly:  For the monthly plan, the annual fee is broken into 12 equal monthly payments and debited from the associates account between the 1st and 5th of each month and the agent will receive 100% of their commissions earned.
  3. Annual:  An invoice for the full amount of the annual fee will be issued on the agent’s anniversary date and payment shall be made in full within 10 days of the invoice date.

Unpaid balances will not be carried forward beyond the agent’s anniversary date. Every agent will start their anniversary date owing the same cap amount.

From time to time, the Key Annual Brokerage Fee may be adjusted based on inflation.


10.1.3 New Agent Processing Fee

The new agent processing fee is a one-time charge to agents joining Key Realty. Please note this fee is subject to change from time to time due to varying costs. While the onboarding fee includes a prorated share of the Errors & Omissions Insurance, its primary purpose is to cover administrative costs associated with onboarding a new agent.


10.1.4 Annual Agent Renewal Fee (AAR)

The annual agent renewal & administrative fee will be charged to Key agents in February of each calendar year for payment of Errors and Omissions insurance as well as general administration costs. This fee will be adjusted depending on the cost of Errors & Omissions insurance and other administrative cost factors. This fee applies to all agents regardless of when they joined Key and when they paid their onboarding fee. 


10.1.5 Key Agent Annual Brokerage Fee administration

When an agent selects a commission program, said selection shall apply to all commissions paid for the next 12 months. It is the agent’s responsibility when electing to be compensated on the monthly payment program to ensure that those funds are available for disbursement to the company on the first of each month, through an automatic deduction program. This fee applies to all agents regardless of when they joined Key and when they paid their onboarding fee.


10.1.6 A Key Monthly Debit Returned

If any Key Realty debit to an agent is returned for NSF, a $25 NSF fee will be charged and the agent’s account will be debited again in 7 days.  If the funds are still not available within 7 days, the agent will be placed on a 50%/50% commission disbursement program unilaterally by management without consultation and/or approval of the agent.  If an agent terminates Key Realty’s authorization to debit their account or does not pay their monthly fee on time for any reason twice during a 12-month period, the agent will be placed on a 50%/50% commission disbursement program unilaterally by management without consultation and/or approval of the agent.  


10.1.7 Anniversary Dates

The agent's anniversary date is used to determine the agent's fiscal year with Key Realty in regards to their commission schedule computations. 

The anniversary date is determined in the following ways: 

Newly Licensed Agent:  The anniversary date is the date the state licensing authority issues the agent an active real estate license. Please note that the passing of the state exam(s) or passing of a state-required background check does not guarantee the license date of an agent. 

Transferring Agents: The anniversary date is the date the transferring application is signed by the broker. For states where transfers are done electronically, the date the broker approves the agent's request to transfer will be used. 

Once the Anniversary Date has been determined, the date will be indicated on the Anniversary Date & Commission Program Election Form and the agent will sign agreeing to the date. Upon the agent's signed approval of the anniversary date, the anniversary date cannot be changed.

Key Realty reserves the right to adjust an agent's anniversary date if the date was notated in error and the agent will be required to sign a new Anniversary Date & Commission Program Election Form. 


10.1.8 Profit sharing Bonuses

At Key Realty, there are profit-sharing bonuses available for agents who are proactive in helping the company grow.  This bonus is currently $500 provided that they are not a returning agent within 90 days of departure.

In order to qualify for the bonus, the Key agent must assist the broker or manager in recruiting a new agent, and arrange for and attend the initial meeting. This bonus is paid to the referring agent as soon as the new agent is onboarded. 


10.1.9 Independent contractor status and payment of taxes

Licensed real estate agents within Key Realty are independent contractors and are responsible for the payment of all federal, state and local income taxes. 


10.1.10 Realtor dues and Fees

It is also clearly understood by all parties to this agreement, especially the licensee, that any and all Key Realty fees and Board of Realtors dues and fines are the sole responsibility of the agent, including but not limited to MLS fines and/or dues, etc. 

Any misrepresentations and/or omissions in the Board of Realtor’s information and inaccurate representations to or on behalf of the clients are the sole responsibility of the agent or licensee.


10.1.11 Key agent complaint response cost and payment policy

If the agent is a respondent to a complaint filed with the Board of Realtors, the state Division or Department of Real Estate and/or is party to and/or defendant to litigation, the Errors and Omissions insurance deductible, arbitration costs and any associated attorney cost is the sole responsibility of the agent. 

Because of our limited compensation provided to Key Realty for brokerage services and the possible availability of zero-deductible Errors & Omissions coverage through our provider, it is our belief and position that the agent should never be in a position to have to pay an Errors & Omissions deductible.  


10.2 Key Agent Commission Program Election Policy

Each agent joining the company will be required to select one of the available commission programs at their time of joining the company. Key Realty will not pay an agent until they have completed and signed the commission program election form. The Agent also is responsible if they choose to change programs to notify management in writing within 30 days prior to their rollover date.


10.3 Expenditure of Office Funds

Management shall not be liable to the salesperson for any expenses incurred by him/her, or for any of his/her acts, and except as otherwise stipulated in this manual. 

No associate has the right to spend or obligate the money of the firm without the consent of the broker, this includes but is not limited to cards, signs, advertising, cash advances or loans, etc.


10.4 Associate Expenses 

As an agent, expenses are typically incurred as the cost of doing business. Agent acknowledges that the agent will be responsible for all personal expense including but not limited to administrative services, agent’s personal office facilities, furniture and equipment, business cards, computer service, courses required for licensing, real Estate examination application fees, lockboxes, marketing, and advertising expenses, multiple Listing Service (MLS) fees, national, state and local Realtor Association Board fees, agent office supplies, stationery and forms of personal promotional marketing materials, signs, telephones, and utilities. 

For the development of personal marketing presentations and brochures, Keyrealtyagent.com, our company website will provide templates and examples, logo designs, etc. to assist agents in the development and design of promotional material.


10.5 Financial Liability of Salesperson

Should a disagreement arise after a sale with the purchaser or seller regarding such matters as chattels, seller's net equity or other disputes which can be settled only by a money consideration the settlement shall be the sole financial responsibility of the salesperson. (see Conflict and Disputes) Errors & Omissions deductibles shall be the agent’s responsibility.

10.6 Automobile Insurance

As an owner and/or driver of a vehicle, you may be held liable for claims arising out of auto accidents when you are at fault.

There is a possibility that the company could be held liable if you are on business for the Company. Therefore, it is necessary that we require all our salespersons and employees carry liability insurance of a minimum of $1,000,000/$1,000,000 bodily injuries and $50,000 property damage or $1,000,000 single limit.

The agent shall provide the broker with a copy of the insurance policy. This is for our mutual protection.