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Commission Agreement 
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Commission Plans

Partner Plans

PLANQUALIFIER (LTM)PHASESPLITUNTIL
Partner Plan A$70,000 AGCI
$2,500,000 Volume
170/30$137,000 AGCI
$4,892,857 Volume
$41,100 to PL
290/10$226,000 AGCI
$8,071,429 Volume
+$8,900 to PL
3100% to Agent
($350 per transaction fee)
Partner Plan B$219,200 AGCI
$7,828,571 Volume
175/25$182,667 AGCI
$6,523,821 Volume
$45,667 to PL
290/10$226,000 AGCI
$8,071,429 Volume
+$4,333 to PL
3100% to Agent
($350 per transaction fee)
Partner Plan C$285,714 AGCI
$10,204,071 Volume
180/20$250,000 AGCI
$8,928,571 Volume
$50,000 to PL
2100% to Agent
($350 per transaction fee)
Partner Plan D$400,000 AGCI
$14,285,714 Volume
185/15$333,333 AGCI
$11,904,750 Volume
$50,000 to PL
2100% to Agent
($350 per transaction fee)
Partner Plan E$666,667 AGCI
$23,809,536 Volume
190/10$500,000 AGCI
$17,857,143 Volume
$50,000 to PL
2100% to Agent
($350 per transaction fee)
PLANQUALIFIER (LTM)PHASESPLITUNTIL
Related Team Plan A$190,751 AGCI
$6,812,536 Volume
170/30$166,750 AGCI
$5,955,357 Volume
$50,025 to PL
290/10$291,500 AGCI
$10,410,714 Volume
+$12,475 to PL
3100% to Agent
($350 per transaction fee)
Related Team Plan B$266,800 AGCI
$9,528,571 Volume
175/25$222,333 AGCI
$7,940,464 Volume
$55,583 to PL
290/10$291,500 AGCI
$10,410,714 Volume
+$6,917 to PL
3100% to Agent
($350 per transaction fee)
Related Team Plan C$357,143 AGCI
$12,755,107 Volume
180/20$312,500 AGCI
$11,160,714 Volume
$62,500 to PL
2100% to Agent
($350 per transaction fee)
Related Team Plan D$500,000 AGCI
$17,857,143 Volume
185/15$416,667 AGCI
$14,880,964 Volume
$62,500 to PL
2100% to Agent
($350 per transaction fee)
Related Team Plan E$833,333 AGCI
$29,761,893 Volume
190/10$625,000 AGCI
$22,321,429 Volume
$62,500 to PL
2100% to Agent
($350 per transaction fee)

Umbrella Plan

PLANPHASESPLITUNTIL
Umbrella Plan160/40$187,500 AGCI
$6,696,429 Volume
$75,000 to PL
290/10

Basecamp Plan

PLANPHASESPLITUNTIL
Basecamp Plan170/30$137,000 AGCI
$4,892,857 Volume
$41,100 to PL
290/10$226,000 AGCI
$8,071,429 Volume
+$8,900 to PL
3100% to Agent
($350 per transaction fee)

Executive Plans

PLANMONTHLY FEEPHASESPLITUNTIL
Executive Plan: Monthly A$2,483190/10$214,000 AGCI
$7,642,857 Volume
$21,400 to PL
2100% to Agent
($350 per transaction fee)
Executive Plan: Monthly B$4,267100% to Agent
($350 per transaction fee)
PLANMONTHLY FEEPHASESPLITUNTIL
Executive Plan: Quick Start A$29,800
nonrefundable
190/10$214,000 AGCI
$7,642,857 Volume
$21,400 to PL
2100% to Agent
($350 per transaction fee)
Executive Plan: Quick Start B$51,200
nonrefundable
100% to Agent
($350 per transaction fee)

Tiered Commission Details

Partner, Related Team, Basecamp and Executive Plans are all considered PorchLight Tiered Commission Plans. The following conditions apply to Tiered Plans:

  • The AGCI included in the Tiered charts is calculated as the gross income brought in from a closing, less any referral fees paid to another broker. Volume is calculated based on an average commission of 2.8%.

  • All plans will be adjusted annually on the agent’s anniversary date (start date). An annual CPI (inflation) update to the plan levels will occur. This adjustment is expected to have minimal impact.

  • For the Partner, Related Team and Executive Plans, an Agent Resource Fee (ARF) of 0.18% will be issued on the sales price of all transactions. The ARF is taken out of an agent’s commission after the split, as all fees are. This ensures that the GCI stays accurate and that agents reach acceleration points as quickly as possible.

  • For the Basecamp Plan, the Agent Resource Fee is 0.36% on the sales price of all transactions; drops to .18% once an agent generates $70,000 in AGCI ($2,500,000 in Volume based on 2.8% average commission). The ARF is taken out of an agent’s commission after the split, as all fees are. This ensures that the GCI stays accurate and that agents reach acceleration points as quickly as possible. Premium TC services are included as long as the agent is paying the .36% Agent Resource Fee.

  • Any agent participating in PorchLight’s newer-to-the-industry training and development program will begin on the Basecamp Plan. After two years on the Basecamp Plan—or after the agent achieves $137,500 in AGCI within a single year, whichever occurs first—the agent will be able to select from the other Tiered Commission Plans.

  • Monthly Technology Fees apply:

    • Partner Plans: $100/month

    • Related Team Plans: $100/month/person

    • No additional Technology Fee for either the Executive or Basecamp Plans

Umbrella Commission Plan

Any agent on the Umbrella Plan as of July 1, 2020 can stay on indefinitely, regardless of production. If their production is under $3,000,000, they will be charged a Business Development Fee of $250/month. Under the plan, enrolled agents receive a 60/40 split until the point in the year when the $75,000 has been paid, then move to 90/10 until the year resets.

  • Additional services are covered under the Umbrella Plan, above and beyond those covered by the Tiered Plans—see each section of Policies & Processes for detailed information.

  • The AGCI included in the Umbrella chart is calculated as the gross income brought in from a closing, less any referral fees paid to another broker. Volume is calculated based on an average commission of 2.8%.

  • All plans will be adjusted annually on the agent’s anniversary date (start date). An annual CPI (inflation) update to the plan levels will occur. This adjustment is expected to have minimal impact.

  • No Technology Fee

  • No Agent Resource Fee

Minimum Commission Under Umbrella
Under the Umbrella Commission Plan, agent commissions will not be reduced lower than 2.8% unless the reduction is pre-approved by the managing Broker. Any commission reductions not approved in writing in advance by the managing Broker shall be deducted from the Associate’s commission payment.

PorchLight will receive a minimum commission of 5.6% for listings and 2.8% for buyers. Agents may discount however they chose with the understanding that regardless of the commission charged to the client, PorchLight will collect their fair share based on a 2.8% commission per side.

Varied Commission Scenarios Under Umbrella
Buyers:

  • If a PorchLight agent is representing the Buyer and the listed commission in MLS is below 2.8% to the Buyer’s agent, PorchLight will not require the agent to reimburse PorchLight for the lower commission amount at time of closing.
  • If a PorchLight agent is representing the Buyer and there is no MLS, as the seller is a FSBO, then PorchLight will require that the commission paid by the FSBO shall be no less than 1.4%. PorchLight will not require the agent to reimburse PorchLight for the lower commission amount at time of closing, unless the commission amount negotiated is less than 1.4%.

Listings:

  • If a PorchLight Agent is representing both Seller and Buyer as a transaction broker and NO PorchLight services have been performed, then the total listing commission shall be no less than 2.8%. PorchLight will not require the agent to reimburse PorchLight for the lower commission amount at time of closing.
  • If a PorchLight Agent is representing the Seller as a Seller Agent, and a Buyer is being treated as a customer, and NO PorchLight services have been performed, the total listing commission shall be no less than 1.4%. PorchLight will not require the agent to reimburse PorchLight for the lower commission amount at the time of closing.
  • If a PorchLight Agent is representing both the Seller and the Buyer as a transaction broker and PorchLight listing services have been performed, then the total listing commission shall be no less than 4.0%. Listing agreement must be signed with a full commission of 5.6%.
  • If a PorchLight Agent is representing the Seller as a Seller’s agent and Buyer as a customer and PorchLight listing services have been performed, then the total listing commission shall be no less than 4.0%. Listing agreement must be signed with a full commission of 5.6%.
  • If an agent lists a property as a personal transaction and also procures the buyer who is then treated as a customer, agent will owe a percentage of 1.4% of the purchase price.  Percentage shall be based on agent’s current commission agreement.

PorchLight Full-Time Status Requirement

At PorchLight, we invest in our agents. As a result, PorchLight agents must be full-time and cannot have another job outside of PorchLight. We want our agents to be full-time real estate experts, which requires a 40-hour-per-week commitment.

Agent Commission Contributions Outside What Is Offered In MLS

Independent Contractors understand that it is within their discretion to discount their commissions on how they see fit within a transaction as long as it follows the guidelines outlined. If the agent determines that it is in the best interest of the transaction to discount their commission below the guidelines outlined, then it is understood that PorchLight Real Estate Group shall take their split from the original commission agreement and their ARF from the full sales price prior to deducting the agent’s chosen discount.

Personal Property

Agent Personal Deals
At PorchLight, we encourage our agents to build personal wealth through investing. In an effort to give our agents a deal for their personal homes or investment properties, PorchLight allows each agent to do five personal deals at a reduced flat rate per calendar year. The agent’s name must appear on title or be part of the LLC/Corporation that holds title or reside in the property as their personal residence with the individual(s) on title. Rate shall be as follows:

  • $700 Transaction Charge for either purchase or listing 
  • Any listing services are paid 100% by the agent (based on Tiered Agent listing services pricing)
  • This applies to both Umbrella and Tiered commission plans
If we do not collect the fee from the title company at closing, it will be automatically billed to the credit card on file. 
 

Investor Purchases & Property Management
PorchLight does not participate in property management and is not licensed as a property management company. However, PorchLight allows their agents to purchase their own personal investment properties and provide property management for properties with titles in their name or their company’s name.

Commercial Real Estate

PorchLight is not a commercial firm. Should an agent wish to become involved in commercial transactions, they acknowledge they are doing so at their own risk. Agent shall disclose to client that PorchLlight is not a commercial real estate firm, and agent should disclose limited experience in commercial real estate transactions to client. Additionally, PorchLight requires attorney oversight on behalf of PorchLight for all contract related documents, which will be paid solely at the Agents expense. Any commissions received are required to be paid per their commission structure.

Co-Listing & Co-Buyer Policy

Any transaction that is to be considered a co-listing or co-buyer must be in writing in either the listing agreement or the buyer agency agreement. A second agent may be added after the listing agreement is executed using an amend/extend w/ Broker. Both agents may receive credit for sales volume in a co-listing/ buyer transaction. The sales volume percentages should be determined before the property goes under contract and if the percentage is not split equally, Broker Associates must execute an in-house referral agreement. Brokers are prohibited from co-listing any property with any agent or brokerage outside of PorchLight.  Payment of referral fees is permitted as necessary. 

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