What type of relationship does an independent contractor have with their brokerage?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Prepare for the Michigan Real Estate Salesperson Test. Study with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your exam!

An independent contractor has a self-governing and performance-based relationship with their brokerage. This means that while the brokerage provides the framework and resources needed for the independent contractor to operate, the contractor has the autonomy to manage their own business practices.

In this arrangement, the contractor determines how to conduct their work, including their schedule, methods of marketing, and business strategy, relying on their own skills and initiative to drive performance. This contrasts with an employee-employer relationship, where the employer typically has more control over the employee's tasks and how they should be carried out, including directing their day-to-day activities and holding them accountable to specific standards.

The other choices do not accurately reflect the nature of the independent contractor's relationship with the brokerage. A casual advisory relationship implies a less formal engagement, lacking the binding characteristics and expectations found in a profession-oriented contract. A co-dependent working relationship suggests a mutual reliance that belies the independence traditionally associated with contractors as they often operate independently rather than depending on the brokerage for operational directives.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy