Agency
The agency relationship between a California broker and salesperson is best described as:
AThe salesperson is an independent contractor with no agency relationship to the broker
BThe salesperson is an agent of the broker and acts under the broker's license and supervision✓ Correct
CThe salesperson and broker are equal partners in all transactions
DThe broker is an agent of the salesperson for purposes of license compliance
Explanation
A salesperson is an agent of their employing broker, acting under the broker's license, direction, and supervision. All transactions conducted by the salesperson are legally the responsibility of the broker. The salesperson may be an employee or independent contractor for tax purposes, but remains the broker's agent for DRE purposes.
Related California Agency Questions
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- A seller's agent discovers a material defect during a property showing. The agent must:
- Which of the following would automatically terminate an agency relationship in California?
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