New Jersey Real Estate Practice Exam Practice Question
Scenario/Extract:
Licensee A and Licensee B work for a principal broker for ABC Realty. For licensee A, the principle broker supervises the work as a listing/buyer's agent, collects commissions, and pays out based on their commission split agreement. Licensee A works from home and attends training meetings at the office. Licensee B works 8 a.m. to 4 p.m. in the ABC Realty office for relocations, showing local properties to relocating clients. Licensee B is licensed to show homes and submits offers for purchase from individuals who are relocating but is paid by salary based on hours worked, with a bonus for production.
What are Licensee A and B's relationships with ABC Realty?
Correct Answer: B
Rationale: In this scenario, Licensee A and Licensee B's relationships with ABC Realty are defined by their roles. Licensee A is classified as a contractor, indicating a level of independence in their work, while Licensee B is an employee, suggesting a more structured relationship with the company, including benefits and oversight.
Option A incorrectly labels Licensee A as an employee, which misrepresents their independent contractor status. Option C suggests both are contractors, overlooking the distinct employment relationship of Licensee B. Option D inaccurately states that both are employees, failing to recognize Licensee A's contractor role. Understanding these distinctions is crucial for compliance and operational clarity within the real estate industry.
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