What aspects of teams are covered in Section 9 of Exit Realty's policies?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
SECTION 9 – TEAMS
DEFINITION
A team is two or more licensed agents working together to conduct real estate. Typically, the team will be recognized as, and promote themselves as, the team. Team leader and member information will be entered in EXIT's proprietary production software, MEMO.
TEAM FORMATION
The EXIT Formula is designed to support the growth and success of teams within the brokerage. [insert brokerage name] is committed to fostering an environment where teams can thrive while ensuring alignment with company standards and policies. Before forming a new team, agents must meet with the Broker to discuss the structure and expectations to help ensure success for all involved. Similarly, existing teams must consult with the Broker before adding current [insert brokerage name] agents. When recruiting outside team members, teams must follow the proper recruiting process, and all new agents and administrative staff require Broker approval before being added to a team.
DEAL FEE ALLOCATION FOR TEAM DEALS
For transactions recorded in MEMO where a team leader and member(s) share commissions, transaction fees are prorated based on the commission split. Using a Transaction Fee of $150 as an example, if the commission is split 60%/40%, the transaction fee would be divided accordingly: $90 for the leader (60%) and $60 for the member (40%). This allocation cannot be altered. Similarly, for individual award calculations, credit for the transaction side is assigned using the same breakdown (0.6 and 0.4 of an end/side, respectively).
PARTNERSHIPS
In the case of spousal teams or partnerships, particularly where one spouse has sponsored the other, all transactions will be split 50/50 to ensure proper recognition as well as adherence to the EXIT Formula.
TEAM LEADER PRODUCTION
Team Leader personal production may be designated as "team deals" in MEMO for the purpose of adding to the team's total sales volume.
POLICY VIOLATIONS
It is EXIT's policy that all actively licensed individuals who offer real estate services to a client should be recognized in MEMO, should remit the appropriate transaction fees, and be eligible for both personal and team production awards. Failure to record production in MEMO as it occurred, is a violation of the EXIT Formula.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit Realty's 2025 Franchise Disclosure Document, Section 9 outlines several aspects of teams, including the definition of a team, team formation, deal fee allocation, partnerships, team leader production, policy violations, and awards. Specifically, a team is defined as two or more licensed agents working together, typically recognized and promoting themselves as a team. Information about the team leader and members is entered into Exit's MEMO software.
Exit's policies also cover team formation, stating that the Exit Formula supports team growth. Agents must discuss team structure and expectations with the Broker before forming a team or adding existing agents. Recruiting outside team members requires following a specific process and obtaining Broker approval for all new agents and administrative staff.
Deal fee allocation for team deals involves prorating transaction fees based on the commission split recorded in MEMO. For example, a $150 transaction fee is split according to the commission split (e.g., 60%/40%). In spousal teams or partnerships where one spouse sponsors the other, transactions are split 50/50. Team Leader personal production may be designated as "team deals" in MEMO to add to the team's total sales volume.
Exit's policy mandates that all actively licensed individuals providing real estate services must be recorded in MEMO, remit transaction fees, and be eligible for personal and team production awards. Failure to record production accurately is a violation of the Exit Formula. These policies ensure proper recognition, fee allocation, and adherence to Exit's standards for team operations.