California Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

Real estate salespersons are generally considered to be employees rather than independent contractors because their agency exercises a large degree of control over their actions and compensation. This includes setting specific hours, providing training, and paying for advertising and overhead expenses. While an agent may have more flexibility in managing their own business, ultimately they are still representing and acting on behalf of the agency. Therefore, they are not considered employers or associates, even though they work closely with them.