California Real Estate Practice Exam

The relationship between broker and salesperson, for purposes of state license law, is always that of:

1. Independent contractors

2. Employer and employee

3. Consultant and client

4. Partners

The correct answer is: Employer and employee

In terms of state license law and relationships between brokers and salespersons, it is important to note that B is the correct answer because brokers are typically considered the employer and salespersons are considered employees. This means that brokers have more control over salespersons and their actions. Option A can be misleading because although both are typically considered independent contractors in the day-to-day operations, in terms of state license law, they have a different relationship. Option C is incorrect because a consultant and client relationship usually implies a fee-for-service, which is not the case between brokers and salespersons. Option D is incorrect because partnerships in real estate are rare and require specific legal agreements, which is not the case for brokers and salespersons.