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Our services
Process
Our methodology begins with a detailed review of your employment contract, independent contractor agreement, and the proposed severance terms. We analyze state-specific laws, such as the WARN Act for mass layoffs, and broker commission structures under regulations like the Real Estate Settlement Procedures Act (RESPA). Our team assesses the enforceability of non-solicitation and non-compete clauses, which vary significantly by state, and evaluates claims for unpaid commissions. We then develop a negotiation strategy, aiming to secure enhanced severance, extended benefits, or a neutral reference. A typical review and initial strategy session is completed within 3-5 business days. For insights into severance for other professions, review our detailed guide on severance pay for project managers.
Local Considerations — USA
Severance negotiations for real estate agents are heavily influenced by state law and local market conditions. In non-compete enforcement states like Texas, contract terms are critical, while in California, such clauses are largely unenforceable. Major metro areas like Los Angeles and Miami have high-value transactions where commission recovery is paramount, whereas in markets like Chicago, issues may center around broker-split agreements and desk fees. Our national practice adapts by leveraging attorneys barred in key states to apply the most favorable local precedents and statutes, ensuring agents in New York or Houston receive counsel tailored to their jurisdiction's specific protections and pitfalls.
At a Glance
| Parameter | Reference Value |
|---|---|
| Initial Case Review Timeline | 3-5 business days |
| Common Negotiation Points | Base pay, commissions, benefits, non-compete scope |
| Governing Law Variation | State-specific (e.g., CA, NY, TX, FL) |
| Typical Agreement Complexity | Medium to High |
Standards & Compliance
- State Common Law Contract Principles
- Federal WARN Act (29 U.S.C. §§ 2101-2109)
- Real Estate Settlement Procedures Act (RESPA - 12 U.S.C. § 2601)
- State-Specific Commission Payment Statutes
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Our team reviews your project and issues an initial report at no cost.
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Frequently Asked Questions
What is typically included in a severance package for a real estate agent?
A severance package may include a lump-sum payment based on tenure, settlement of owed commissions, continuation of health benefits (via COBRA), outplacement services, and terms regarding the return of company property. Crucially, it almost always contains a release of claims and may include restrictive covenants affecting future brokerage work.
Are non-compete clauses enforceable for real estate agents?
Enforceability is highly state-dependent. In states like California, they are generally prohibited for employees. For independent contractor agents, courts examine reasonableness of scope, duration, and geographic area. Listed attorneys review these clauses against current state law to challenge overbroad restrictions.
How long do I have to review and sign a severance agreement?
Federal law (the OWBPA) provides a minimum of 21 days to review a standard agreement and 45 days if part of a group termination, plus a 7-day revocation period after signing. State laws or employer policies may offer more time. It is critical to use this period for legal review.
How much does severance pay legal counsel for real estate agents cost?
Legal fees depend on case complexity, including the number of agreements, disputed commissions, and need for negotiation or litigation. Each listed firm typically works on an hourly basis, with rates reflecting attorney experience. For a specific cost estimate, we provide a tailored consultation and proposal after reviewing your documents.