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Under RELA, a salesperson in Pennsylvania must affiliate with a broker before engaging in real estate activities. Which of the following best describes the relationship between a salesperson and their employing broker?

Correct Answer

C) The salesperson may be classified as either an employee or independent contractor for tax purposes, but must work under the broker's real estate license for RELA purposes

Under RELA, the salesperson must work under the broker's license, but the employment arrangement may be structured as either employee or independent contractor for tax purposes. Regardless of the tax classification, the broker retains supervisory responsibility under RELA.

Answer Options
A
The salesperson is always classified as a W-2 employee of the broker for all purposes
B
The salesperson operates as a completely independent business with no obligations to the broker
C
The salesperson may be classified as either an employee or independent contractor for tax purposes, but must work under the broker's real estate license for RELA purposes
D
The salesperson and broker share equal regulatory responsibility for all transactions

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Related Topics & Key Terms

Key Terms:

salesperson_brokerindependent_contractoremployeelicense_categoriesRELA
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