Which statement is true regarding Carl, a sales agent working under a broker?

Which statement is true regarding Carl, a sales agent working under a broker?

• A. Carl is required to be an employee
• B. Carl can only be an independent contractor
• C. Carl can be either an employee or an independent contractor
• D. Carl must be licensed as a broker

Answer: (C)

Carl's status as a sales agent under a broker allows for flexibility in the nature of his relationship with the broker. He can operate as either an employee or an independent contractor, depending on the terms of his agreement with the broker. If Carl is an employee, he would typically receive a salary or hourly wage and have taxes withheld by the broker. As an independent contractor, he would have more control over his work schedule and methods, often compensated through commission, and responsible for paying his taxes directly. This adaptability is a significant aspect of real estate practice, where agents can align their working arrangements with their personal and financial goals. Being licensed as a broker is not a requirement for Carl, as he is functioning as a sales agent under the supervision of a licensed broker, which is a standard arrangement in the industry. This option highlights the importance of understanding the nature of employment and contractual relationships in real estate.

Carl's status as a sales agent under a broker allows for flexibility in the nature of his relationship with the broker. He can operate as either an employee or an independent contractor, depending on the terms of his agreement with the broker.

If Carl is an employee, he would typically receive a salary or hourly wage and have taxes withheld by the broker. As an independent contractor, he would have more control over his work schedule and methods, often compensated through commission, and responsible for paying his taxes directly. This adaptability is a significant aspect of real estate practice, where agents can align their working arrangements with their personal and financial goals.

Being licensed as a broker is not a requirement for Carl, as he is functioning as a sales agent under the supervision of a licensed broker, which is a standard arrangement in the industry. This option highlights the importance of understanding the nature of employment and contractual relationships in real estate.