I got an offer to join a CRE brokerage but I have to sign a Runners hip agreement that forces me to stay for 3 years is this normal?
[deleted]
[{"id": "iiceob2", "text": "No, that seems highly unethical and they\u2019re ripping you off with that split.", "replies": [{"id": "iicfbb9", "text": "How?  I really want to know, because I almost signed. I don't have any experience I just got my license and I don't really have a leg to a stand on going into CRE. I doubt I'll get a anything in six months anyway. But I've heard 50/50 split before at another CRE bro too. So I just want to know what would be a good offer?", "replies": [{"id": "iicfinq", "text": "The split should be 50/50 from the get-go. The part that\u2019s really wrong is requiring you to stay for 3 years. That\u2019s extremely unethical. What brokerage is this?", "replies": [{"id": "iicg0i2", "text": "I rather not say but it does bother me too. It's a an agreement paper they want me to sign. And the wording they use is as follows :\n\n \"A Runner is expected to stay with the Company for a minimum of three (3) years after the conclusion of the Runner Training Program. If the former runner (now Agent) is recruited by a competing real estate brokerage company within the first three years of the Runner\u2019s hire; then the competing company will be required to pay (CRE NAME) a fee of $10,000.00 to recapture the training costs incurred by (CRE NAME) so long as the Agent moves to a new real estate brokerage office located within the ( the city).", "replies": [{"id": "iici1eg", "text": "Yeah that\u2019s bullshit, I\u2019m sorry man. You\u2019re worth more than that and I know you can find a brokerage that isn\u2019t so scummy.", "replies": [], "depth": 5}, {"id": "iici61w", "text": "Yeah that\u2019s not enforceable. Your hypothetical next employer isn\u2019t a party to this employment contract.", "replies": [{"id": "iicigga", "text": "I assumed that too, it's more like a deterrent to keep me from thinking of leaving. But kind of a shitty thing to do to me regardless. Like nobody is forced to do anything, I can up and leave anytime I like. But they put those words down to hopefully help me think twice before moving on.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iici79y", "text": "I'd love to see them enforce the buyout fee on you, let alone another firm unattached to the employment contract. Like they're trying to enforce indentured servitude.\n\nContract a lawyer before signing.", "replies": [{"id": "iicla3i", "text": "I'm sure it's more of like a promise just because of the wording they used \"expected\" not \"must\". \"Expected\" is not guaranteed when \"must\" is absolute. My dad's a broker and that was one of the questions they asked me during the meet up. They asked was I going to go back to my father eventually? I told them no. I didn't say why but my dad is extremely narcissistic and sociopathic he'd probably steal my money. I wouldn't dare even go back because he would be ripping me off left and right.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iicnk9l", "text": "Lol its a bad deal bro, don\u2019t take it", "replies": [], "depth": 1}, {"id": "iicoq95", "text": "A few thoughts:\n\nThe 3 year requirement, and even more so the $10k recompense should you leave, is completely unenforceable.  Can you imagine hiring a junior broker and their former employer asking you for money? Lol\n\nSecond, the 25% split for 6 months is way more normal than these other commenters would leave you to believe.  Especially if you\u2019re on the investment sales side, you\u2019re not going to do a single deal in that time period anyway so it really doesn\u2019t matter.  This is essentially their trial period to see if you\u2019re worth investing in.  If you show potential and the ability to source deals, your pay will figure itself out (or you will then lateral to another shop with better splits).\n\nMost folks, even at top shops, aren\u2019t offered any sort of salary.  A draw is more common, but the point remains: this is a standard offer and by no means \u201cunethical\u201d or predatory.   Go to CBRE, JLL, Cushman, etc and you\u2019ll get your 50% split, but again, you\u2019re not closing a deal in 6 months.\n\nIf you trust the team you\u2019re potentially working with, that\u2019s more important than the negligible percentage points you\u2019re worried about now.  Just my $.02.", "replies": [{"id": "iicpy7a", "text": "Thank you so much Paynixt, how long have you been doing Commercial? And this is a new career for me. I started out my pops but unfortunately he does have bipolar disorder I think and or narcissistic and sociopathic tendencies. I know for a fact I can't trust him at all. To work with him would be the worst decision, he didn't even want me to under him he wants me to work under the table and he would pay me personal checks. In other words I would never see the breakdown of what the real commission was and my name would never be involved on any of the paper work so I can't claim any of that as my own work. He even once said to me \" why would you believe you deserve a commission so soon!? Even if you got a commission too soon I wouldn't even want to give it to you because that ruin your career \"  it's a long story but my dad is a super villain.", "replies": [{"id": "iicr3ou", "text": "Alrighty, that\u2019s a lot to unpack.\n\nNot sure I have much to add, I\u2019d just emphasize that finding a team that you trust and believe truly wants to grow/mentor you is more important than a year one commission split.  \n\nLastly, sociopathic and narcissistic tendencies are an industry staple.  Welcome.", "replies": [], "depth": 3}], "depth": 2}, {"id": "iicr7gd", "text": "I know Theres some other commercial brokerages there is Marcus but I heard it's a cannibalistic environment and it basically kills off all those that try. The system is designed to feed the the seniors at all costs and get new guppies to do the same over and over. I don't even want to try at Marcus, my dad also came from there too. The nearest CBRE is like 20 miles from home and this brokerage is like five minutes away, that that was a plus too. I don't know I'll talk to them to see if this is a binding agreement or its just like a promise letter.", "replies": [], "depth": 2}], "depth": 1}]