Canada Teams Defined

Canada Teams Defined

Canada Teams Defined

Your one stop source for all things Teams!

Table of Contents

WHAT IS A TEAM?

A Team is defined as a lead agent “Team Leader” and at least one licensed agent working as a “Team Member.” Team agreements are to be made based on mutually agreed upon terms between the lead agent and the team member(s). These agreements should be in writing and carefully considered to ensure compliance with all Federal, Provincial and Local laws as well as company policy. eXp Realty will not intervene in any disputes between Team Members and Team Leaders.

DOMESTIC TEAM: 1 Full Cap (16k) Shared Between Both Partners

One Agent must be designated as the Primary Agent (an irrevocable designation), the other Agent will then be automatically designated as the Secondary Agent.  Agents MUST be legally or common law married to qualify for this structure (proof required). Both Agents MUST join under the same sponsor, MUST have the same cap reset date & anniversary date and all attraction activity MUST be under the Primary Agent. 


● $16,000 Company Dollar Cap shared between both Agents

● $5,700 Capped Transaction Fee shared between both Agents

● A single Revenue Share position will ONLY be under the name of the Primary Agent

● Cloud Brokerage Fee is $139/mo. for Primary Agent and a reduced rate of $70/mo. for the Secondary Agent

● 1 Skyslope Account & 1 eXp email address for the Primary Agent

● Risk Management Fee of $17/mo. for each Agent (only in applicable provinces)

● 1 sign-up free of $199 which includes pro-rated Cloud Brokerage Fees for Primary Agent (no sign-up fee for Secondary Agent)

● 1,000 business cards and 50 note cards for Primary Agent

● All income and billing will be under the name of the Primary Agent

● No splitting income between the Primary & Secondary Agents

● All commissions/revenue share/earnings are paid to the Primary Agent

● ICON Award can only be awarded to the team and not an individual Agent on the team


If your Domestic Team structure is dissolved, both the Primary and Secondary agents' sponsors WILL remain the same. However, the revenue share position for the Secondary Agent will shift directly beside the Primary Agent. The Secondary Agent does not get any part of the Primary Agents revenue share group. The Secondary Agent will also shift to an individual full capping agent and their Skyslope account will be reinstated. 


SELF ORGANIZED TEAM: Full Capping (16K) Structure


● Any agent within eXp can form a Self Organized team

● Teams on this structure DO NOT have a reduced cap and can form a team 

with any terms between members that they choose (third party agreement)

● IF a third party agreement exists, eXp requires a copy. However, eXp is NOT responsible nor liable for any terms or legalities within that agreement

● There is no minimum referral percentage to the Team Leader required.

● The Team Leader will be the only member to sign documents to create a Self Organized Team ● eXp Realty WILL require a list of agents on the team to ensure proper reporting as a team within Enterprise, and to be added on the Team Roster

● When any Team Member joins or leaves the team, the Team Leader is responsible for letting the Growth & Expansion Department know in a timely manner


TRADITIONAL TEAM: Full Capping (16k) OR Half Capping (8k) Structure


In certain cases, eXp Realty will reduce a Team Member’s annual company dollar cap by half (8K). The Team Leader on a Traditional structure will ALWAYS be on a full cap (16K). Team Members WILL have the option to be on a full cap (16k) OR a half cap (8k). Agents who choose to be on a reduced annual cap (8k) are not eligible to receive the “capping equity award” or the ICON Agent Award, as paying a full cap is required for both. In order to qualify for a reduced 


Team Member annual cap (8K) the following terms are required:


● The Team Leader must have a minimum of 30 closed transactions OR 6 Million in sales volume during the previous 12 months. 

● Team Members, on a reduced cap, MUST pay the Team Leader a minimum of 25% of their GCI earned on every transaction. 

● IF a third party agreement exists, eXp requires a copy. However, eXp is NOT responsible nor liable for any terms or legalities within that agreement

● The Team Leader MUST sign a Team Leader Addendum. 

● Team Members MUST sign a Team Member Addendum. Team Members are required to be within a 150-Kilometer radius of the Team Leader. If Team Members are outside of a 150-Kilometer radius, a Satellite Team Leader must be named in the extended area. This Satellite Team Leader will have the option to be on a full cap (16k) OR a half cap (8k). 

● Team Leader MUST provide a roster of all Team Members to ensure proper reporting as a team within eXp Enterprise, and to be added on the Team Roster

● When any Team Member joins or leaves the team, the Team Leader is responsible for letting the Growth & Expansion Department know in a timely manner


MEGA ICON TEAM: Full Capping (16k) OR Quarter Capping (4k) Structure


Certain high-producing teams may choose to apply as a Mega Icon Team. As a Mega Icon Team, eXp Realty will reduce a Team Member’s annual company dollar cap by three-quarters resulting in Agents being on a ¼ cap (4k). Team Leaders will continue to pay a full cap. Team Members with a reduced annual cap (4k) are not eligible to receive the “capping equity award” or the ICON Agent Award, as paying a full cap is required for both. Mega Icon Teams will also pay a reduced capped transaction fee of $75 beginning on their first capped transaction. 


In order to qualify as a Mega Icon Team, the following terms are required: 


● During the previous 12 months, the team must have a minimum of:

 a. 175 closed transactions 

 b. $40 million in sales volume 

 c. 10 ¼ capping (4k) Team Members 

● Team Members, on a reduced cap, MUST pay the Team Leader a minimum of 25% of their GCI earned on every transaction 

● The Team Leader MUST guarantee $56,000 annual team company dollar (see below for breakdown)

● IF a third party agreement exists, eXp requires a copy. However, eXp is NOT responsible nor liable for any terms or legalities within that agreement

● Team Members must be within a 150-Kilometer radius of the Team Leader. If Team Members are outside of a 150-Kilometer radius, a Satellite Team Leader must be named in the extended area. This Satellite Team Leader will have the option to be on a full cap (16k) OR a half cap (8k).

● The Team Leader MUST sign a Mega Team Leader Addendum

● Team Members MUST sign a Mega Team Member Addendum

● Team Leader must provide a roster of all team members to ensure proper reporting as a team within eXp Enterprise, and to be added on the Team Roster.


Important terms to understand: The Team must pay a minimum of $56,000 in company dollars through commissions or the Team Leader must pay the difference to eXp Realty on their anniversary. If the Team Leader pays the difference, the team will be adjusted to a Traditional Team for their next anniversary year. The $56,000 minimum is based on the Team Leader paying a full $16,000 cap and 10 additional Team Members paying a $4,000 quarter cap (10 x $4,000=$40,000 + $16,000=$56,000). Team Leaders should carefully consider the distribution of their team’s production before applying as a Mega Icon Team. Team Members on a Full Cap are not included in this $56,000 calculation. As a Mega Team Leader, the production requirements to earn the ICON Agent Award are to achieve the $56,000 team company dollar minimum. Team Leaders who do not reach the minimum and have to pay the difference are NOT eligible for the ICON Agent Award.


UNDERSTANDING TEAM COMMISSIONS: HOW COMMISSIONS ARE CALCULATED

From any gross commission:

● The first deductions are for any outside referrals owed to other brokers. 

● Next, gross commissions (or remaining commissions after outside referrals) are divided between Team Leader and Team Member. 

● Then all eXp Realty company dollars and fees are deducted from each agent individually. 

● Transaction fees such as broker review fee, capped transaction fee are per transaction, not per agent. 


For illustration purposes only, here are some examples of a Team commission break down:


Example One: 

$10,000 gross commission - 50/50* split between Team Leader and Team Member - neither agent capped split varies based on agreement between Team Leader and Team Members.


Team Leader: $5,000 

● Less 20%: $5,000 - $1,000= $4,000 

● Less half of broker review fee ($29): $4,000 - $14.50 = $3,985.50 

● NET TO TEAM LEADER: $3,985.50 


Team Member: $5,000 

● Less 20%: $5,000 - $1,000= $4,000 

● Less half of broker review fee ($29): $4,000 - $14.50 = $3,985.50

● NET TO TEAM MEMBER: $3,985.50 


***In BC and AB there is a Liability Insurance fee per deal***


Example Two: 

$10,000 Commission - 50/50 split between Team Leader and Team Member — Team Leader has capped, but Team Member hasn't


Team Leader: $5,000 

● Less half of capped transaction fee ($285*): $5,000 - $143.50 = $4,856.50 

● Less half of broker review fee ($29): $4,856.50 - $14.50 = $4,842 

● NET TO TEAM LEADER: $4,842 


Team Member: $5,000 

● Less 20%: $5,000 - $1,000= $4,000 

● Less half of broker review fee ($29): $4,000 - $14.50 = $3,985.50 

● NET TO TEAM MEMBER: $3,985.50

 

***Capped transaction fee reduces to $75 for Mega Icon Teams and any agent whose capped transaction fees total $5,700 or more***


TEAM RESOURCES

Have more questions about joining eXp Realty as a team or establishing a team? 

Contact: CDNteamservices@exprealty.com

Nathalie Goodyer- Growth & Expansion Manager 

Lisa Paille- Growth & Expansion Specialist

Stephanie Malcolm- Growth & Expansion Specialist 


 Ready to bring your team to eXp Realty? 


● Book a Team Discovery call with our Growth & Expansion Department with the contact information above

● Apply (Team Leader and all Team Members) at join.exprealty.com and indicate on the application that you are part of a team 

● Proof of production for the last 12 months (Traditional Team and Mega Icon Team Applicants only) is required as well as a team roster to CDNteamservices@exprealty.com

● All teams within British Columbia MUST registered team name and all team members with BCFSA and provide eXp with proof of registration

● Have an existing Team at eXp Realty and need to add or remove Team Members? Contact our Growth & Expansion department. 



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