New Jersey Real Estate License Exam Practice Question
According to the New Jersey Real Estate License Law, employment agreements between salespersons and brokers MUST include which of the following provisions?
Correct Answer: A
Rationale: Employment agreements between salespersons and brokers must clearly outline compensation details in the event of termination to ensure transparency and protect the interests of both parties. This provision helps prevent disputes over payments and clarifies the financial implications of ending the employment relationship.
Option B, while important for risk management, is not a mandatory provision in the employment agreement itself. Option C is incorrect because the classification of a salesperson as an independent contractor is not a required clause; it depends on the specific working relationship. Option D, although relevant to legal protections, is not a necessary component of the employment agreement under New Jersey law.
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