Texas License Law

A Texas broker who forms an independent contractor relationship with their sales agents must ensure that:

AThe agents are classified as W-2 employees for tax purposes
BThe independent contractor relationship does not limit the broker's responsibility to supervise agents under TREC rules✓ Correct
CThe agents pay all their own business expenses without exception
DThe agents sign individual TREC agreements

Explanation

Regardless of whether agents are classified as employees or independent contractors for tax purposes, the broker retains full responsibility under TREC rules to supervise all agents' licensed activities. Independent contractor status for tax purposes does not exempt the broker from supervision obligations.

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