California Real Estate Practice Exam

A sales person must always work under a broker's supervision because, for certain purposes, the salesperson is considered what?

1. An independent contractor

2. An employee

3. A freelancer

4. A temporary worker

The correct answer is: An employee

The correct answer is that a salesperson is considered an employee for certain purposes, primarily in the context of their relationship with the broker they work under. While real estate salespeople often function with a high degree of independence, they are still subject to the supervision and direction of the broker. This classification as an employee means that the broker has a responsibility to oversee the activities of the salesperson, ensuring compliance with legal and ethical standards in real estate transactions. The broker is also liable for the actions of the salesperson while they are conducting business on the broker's behalf. The other classifications, like independent contractor, freelancer, or temporary worker, may imply a higher level of autonomy and less direct supervision, which does not accurately capture the working relationship in a real estate context. Thus, recognizing the salesperson as an employee highlights the essential supervisory role that brokers play in guiding and managing their salespeople.