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The contractual foundations of your mortgage broker business deserve more scrutiny than they typically receive. While most advisors focus exclusively on commission splits when joining networks, the real devils lurk in overlooked details that can dramatically impact your future flexibility and financial success.

Client ownership stands as perhaps the most critical consideration. Many brokers are shocked to discover that some networks claim ownership of client relationships even after departure, potentially allowing reassignment of your hard-earned clients to other advisors. Understanding exactly who maintains these relationships post-separation can make the difference between business continuity and starting from scratch. Similarly, commission structures demand scrutiny beyond headline percentages – hidden overrides, technology fees, compliance charges, and supervision costs significantly affect your actual take-home pay.

Technology infrastructure, compliance support, and exit conditions represent equally crucial considerations. Networks should provide systems that enhance rather than hinder your productivity, with guaranteed data portability should you leave. Effective compliance frameworks should protect without unnecessarily impeding your business. Most critically, understand your notice periods, exit fees, and any restrictive covenants before committing. Under English law, post-termination restrictions are only enforceable if protecting legitimate business interests and remaining reasonably limited in scope and duration – typically no more than 12 months for non-compete provisions.

When preparing to leave a network, careful planning becomes essential. Coordinate notice periods with new authorization, fulfill all exit requirements meticulously, and negotiate pipeline transfers where possible. Throughout this process, maintain professionalism as future references may depend on it. Remember that contracts typically favor the party that drafted them, making professional legal advice a worthwhile investment compared to the potential costs of unfavorable agreements. For additional support with self-employment transitions, explore the Broker Foundry community resources or connect directly to discuss personalized pathways toward greater independence.

I help employed mortgage brokers go self-employed with clarity, confidence and one-to-one mentoring. Find out how Pathways or Coaching works at craigskelton.co.uk

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