Minnesota License Law

Which of the following best describes the relationship between a real estate salesperson and their employing broker in Minnesota?

AEmployee-employer with the salesperson as a W-2 employee
BIndependent contractor under a written agreement, but the broker retains supervisory responsibility✓ Correct
CEqual partners in the brokerage business
DFranchisor-franchisee arrangement regulated by the FTC

Explanation

In Minnesota, most real estate salespersons work under independent contractor agreements with their broker, though the broker retains supervisory responsibility for the salesperson's licensed activities. The independent contractor status affects how income taxes are handled (salespersons often receive 1099s rather than W-2s).

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