One of the nice things about being in real estate in that we are generally treated as independent contractors for tax purposes and work hour requirements. Notice I said
Of course, legally, the California Bureau of Real Estate always treats us as employees of the broker. From 30,000 feet this means that the broker must reasonably supervise any salespeople working for the broker and the broker is generally responsible for a wrong done by the salesperson while the salesperson is acting under the scope and course of employment.
However, for tax purposes and work hour requirements, salespersons can be treated as independent contractors. This generally means:
1. Salespersons are independently licensed.
2. Compensation is based on sales made, not hours worked.
3. There is a written contract that states that the salesperson will be treated as an employee for tax purposes.
Recently, due to the California budget crisis, there was a proposal to have real estate brokers withhold 3% from sales commissions.
Yesterday, we got word that
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Founder, Adhi Schools
Kartik Subramaniam is the Founder and CEO of ADHI Real Estate Schools, a leader in real estate education throughout California. Holding a degree from Cal Poly University, Subramaniam brings a wealth of experience in real estate sales, property management, and investment transactions. He is the author of nine books on real estate and countless real estate articles. With a track record of successfully completing hundreds of real estate transactions, he has equipped countless professionals to thrive in the industry.
"Hey guys,
I took the exam today and passed!!!!
It only took me one try which was one of my goals. I took the online
classes and follow your suggestions so I took the crash course,
used the crash course app a lot, took 7 mock tests and went
confident to present the exam. Thank you for the great job you are
doing, you guys are awesome!!!! May God continue to bless you!"
Willie V.
