Independent Contractor Agreement (Agent–Broker) — Indiana Edition Template

The agent–broker relationship in U.S. real estate runs on independent contractor status — and that status is legally fragile if the paperwork is wrong. Federal tax law provides a statutory safe harbor: under 26 U.S.C. § 3508, a licensed real estate agent is treated as a non-employee for federal tax purposes if substantially all compensation is tied to sales output rather than hours worked AND there is a written contract providing the agent will not be treated as an employee for federal tax purposes. No written agreement, no safe harbor. State-level classification (wage law, unemployment, workers' comp) adds another layer — many states have real-estate-specific carve-outs from tests like California's ABC test (see Cal. Bus. & Prof. Code § 10032), but those carve-outs typically also require a written independent contractor agreement.

This 7-page agreement is built to hold that status together. It covers: engagement and license status; the § 3508 written-contract language stating the agent will not be treated as an employee for federal tax purposes; commission-based compensation with a defined split schedule and changes-on-notice mechanics; broker supervision duties that coexist with contractor status (license law requires broker supervision — the agreement distinguishes regulatory supervision from employment-style control); expenses, fees, and chargebacks; E&O insurance; lead and listing ownership; conduct, compliance, and fair housing obligations; termination and post-termination commission treatment for pending deals; and dispute resolution.

The 50-state variation notes cover state contractor statutes, workers' comp election rules, and states requiring specific contract language. This is the single most important document in a brokerage's file cabinet — use this template as a strong starting point and have brokerage counsel adapt it to your state.

About this Indiana Edition: Every form in this set is drafted around Indiana's single-license structure — since 2014 all licensees are "brokers" working under a "managing broker," and compensation, listings, and trust funds run through the broker company. Dual representation is handled under Indiana's limited-agency regime in IC 25-34.1-10, which permits it only with written consent containing specified disclosures; the consent form tracks those statements. The listing, buyer, referral, and disbursement forms are built to satisfy Indiana's statute of frauds (IC 32-21-1), including its writing requirement for commission agreements, and the electronic-signature provisions of IC 26-2-8. The seller disclosure template is a supplemental worksheet to the Commission-prescribed state form required by IC 32-21-5, with delivery before offer acceptance, actual-knowledge standard, and the IC 32-21-6 stigmatized-property rule noted. The commercial broker lien act (IC 32-28-12.5) is flagged as inapplicable to residential property. Not legal advice; have an Indiana-licensed attorney review before use.