Mentor/Mentee cancellation fees

**twilightofidols** · 08-03-2011, 02:14 PM

I am interested in a brokerage which pays for you to take classes and get your license. I understand it's normal for the mentor to get a relatively large cut of the commission but what fees are normally associated with cancelling the agreement?

This contract states that if you do not complete classes, do not get your license, leave the brokerage before completing 6 transactions, or leave the brokerage within 1 year given that for whatever reason you've had less than 6 transactions you will be responsible for a $5,000 fee to the broker. Supposedly it's an amazing firm that provides lots of leads and babysitting to get started. I want to know if this practice is common and if the fees are too high or just right.

**twilightofidols** · 08-03-2011, 10:01 PM

22 views, no replies, anyone?

**Real Estate Brisbane** · 08-04-2011, 12:29 AM

Are you committed to working in that field? If the break fees are a concern you may need to access your commitment to making it work. Hope this helps

**twilightofidols** · 08-04-2011, 01:41 PM

I would like to learn about the business perhaps even pay for schooling and licensure, but $5k risk for someone who is just getting their feet wet sounds excessive to me. If for some unforseen circumstance I am unable to receieve licensure or have to leave town on a whim I will have lost a significant amount of money.

I am curious if this is standard practice or if this brokerage is simply taking advantage of new agent referrals who don't know the business and haven't been licensed. It's the first and only real estate brokerage I've ever visited so I have nothing to compare it to. I understand it's a business investment, but my gut tells me it's a sore deal. I understand the mentor wishing to be compensated for his services, I would be willing to pay a mentor a reasonable fee out of pocket AFTER I have licensure rather than be subject to a 5k termination.