According to California Real Estate Law, what is the status of a salesperson?

In California real estate law, a salesperson is generally classified as an independent contractor. This classification allows salespersons to operate with a degree of autonomy in their real estate activities. They are often responsible for their own expenses, use their own tools, and determine their own methods of work under the guidelines provided by their supervising broker.

While it’s essential to understand the common classifications in real estate, the status of a licensed salesperson as an independent contractor is significant because it impacts tax obligations, liability, and the contract relationship with their brokerage. An independent contractor relationship allows for greater flexibility and potential for income in performance-based roles, like real estate sales.

The concept of being an employee entails a different set of legal and financial responsibilities — employees are typically subject to direct supervision, have controlled work hours, and receive employee benefits, none of which typically apply to independent contractors in real estate.