Under California law, how is the relationship between a real estate salesperson and their supervising broker best characterized?
Correct Answer
B) The salesperson may be an independent contractor for tax purposes but remains under the broker's supervision for licensing purposes
Under California Business and Professions Code §10132 and IRS guidelines, a salesperson may be classified as an independent contractor for federal tax purposes when a qualifying written agreement is in place. However, for California real estate licensing purposes, the broker retains full supervisory responsibility over the salesperson's licensed activities regardless of tax classification. These two classifications operate independently of each other.
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Previous Question
A California listing agent represents a seller and receives two offers simultaneously. Offer 1 comes from an unrepresented buyer; Offer 2 comes from a buyer represented by a cooperating broker. Offer 1 would yield the listing agent a higher net commission because no cooperating broker commission would be shared. Which of the following best describes the listing agent's obligations?
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Under California Civil Code §2079.13-2079.24, the agency disclosure requirements apply to which of the following transactions?