David Saks: Employee Versus Independent Contractor

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Employee Versus Independent Contractor

                                   employee vs independent contractor

What kind of an employment agreement do you have with your broker?

Should the employment agreement define your obligations and responsibilities?

There really are only two alternatives to working for a brokerage:

A salesperson has to be either an independent contractor or an employee.

What would impact the organization of a salespersons responsibilities when they're treated as an independent contractor?

As an employee?

How does it affect the broker's responsibility to withold taxes or pay the saleperson?

How do you view your position with your company and how does your broker treat you?

Thanks..... -David-

David Saks

Time&Temp Memphis

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Comment balloon 10 commentsDavid Saks • April 27 2008 12:17AM


David, it is a very fine line. My broker is there for me, but "not there". I think that is in substance the independent contractor status.

Posted by Vickie Nagy, Vickie Jean the Palm Springs Condo Queen (Coldwell Banker Residential Real Estate) over 12 years ago
In CA, we are not salaried employees and for income purposes we are independent contractors. Brokers working under brokers, we  are held at a higher standard while a salesperson must work for a broker
Posted by Jean Powers, CRS,e-PRO,HAFA,SFR Broker, Northern California (Kane & Associates call 510.908.9002) over 12 years ago

Treating a real estate sales person as an employee would certainly complcate the relationship.  Would you have to pay minimum wage?  A licensed agent in CA can be treated as an independent contractor and therefore the broker does not have to keep track or care how many hours are worked.  I do not think an employee status would work to well for a sales agent.

Posted by Robert Machado, CPM MPM - Property Manager and Property Management (HomePointe Property Management, CRMC) over 12 years ago
David:  Being a RE/MAX agent pretty much does away with most, if not all of the problems associated with trying to be an independent contractor, but having the demands often made of you... floor time, office meetings, and other miscellaneous office requirements make it look like you are an employee.  Independent Contractor = having the freedom to not being required to do things like go to "mandatory" broker-required office meetings.
Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) over 12 years ago
David.....I work for a very respectful broker and I am a licensed broker myself.  We are independant contractors and paid on commission.  None of us here are salaried.
Posted by Pam Winterbauer, "Providing Blue Ribbon Service" (Pam Winterbauer Real Estate) over 12 years ago
The line gets crossed on occasion, Vicki. Depends on the agents relationship with the brokerage.
Posted by David Saks ((retired)) over 12 years ago
Sounds like a good arrangemnet, Jean.
Posted by David Saks ((retired)) over 12 years ago
Perhaps a split against a draw could work, Robert, in an employee-benefitted atmosphere, but for some only.
Posted by David Saks ((retired)) over 12 years ago
Good point, Karen.
Posted by David Saks ((retired)) over 12 years ago
Sounds great, Pam.
Posted by David Saks ((retired)) over 12 years ago

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