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Trela Trec RulesLicense_requirementsHARD

Marcus, a Texas sales agent, wants to operate as an independent contractor rather than an employee of his sponsoring broker. Under TREC rules, does the independent contractor status affect the broker's supervisory obligations?

Correct Answer

C) No, the broker's supervisory obligations under TREC rules apply regardless of whether the sales agent is classified as an employee or independent contractor for tax purposes

Under TREC Rules §535.2 and Texas Occupations Code §1101.803, the broker's supervisory obligations are statutory and apply regardless of the employment classification of the sales agent. Whether a sales agent is classified as an employee or independent contractor for tax or other purposes does not diminish the broker's duty to supervise.

Answer Options
A
Yes, if Marcus is classified as an independent contractor, the broker has no supervisory obligations because independent contractors are self-directed
B
Yes, independent contractors must file a separate supervision waiver with TREC and are exempt from broker oversight
C
No, the broker's supervisory obligations under TREC rules apply regardless of whether the sales agent is classified as an employee or independent contractor for tax purposes
D
No, but the broker's liability is limited to 50% of any damages if the sales agent is an independent contractor

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Related Topics & Key Terms

Key Terms:

independent_contractorbroker_supervisionemployment_statusTREC_535
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