New Jersey Real Estate Practice Exam Practice Question
Employment agreements between salespersons and their employing brokers must include the
Correct Answer: B
Rationale: Employment agreements between salespersons and their employing brokers must specify the rate of commissions to ensure clarity regarding compensation. This transparency is crucial for maintaining trust and motivation in the sales relationship.
Option A is incorrect as it addresses the broker's responsibilities rather than the essential terms of commission payment. Option C focuses on the salesperson's obligations, which, while important, do not pertain to the commission structure. Option D introduces a non-compete clause that may be relevant but is not a standard requirement in employment agreements related to commission rates. Thus, the emphasis on commission rates is vital for both parties' understanding.
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