Agency
In South Dakota, what is the primary difference between an agent and an independent contractor?
AIndependent contractors can hold real estate licenses; agents cannot
BAgents owe fiduciary duties to principals; independent contractors work for themselves without such duties✓ Correct
CIndependent contractors in real estate do not need to comply with license law
DAgents are employed by the state; independent contractors are privately hired
Explanation
Real estate agents in SD are often classified as independent contractors for tax purposes but still owe fiduciary duties to their clients. The IC classification relates to employment taxes, not the duty of care owed to clients.
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