Which document should specify whether the salesperson is an employee or an independent contractor?

• A. The listing contract
• B. The property deed
• C. The employment agreement between the broker and the salesperson
• D. The mortgage agreement

Answer: (C)

Understanding how a salesperson is classified hinges on the contract that defines their working relationship with the broker. The document that specifies whether the salesperson is an employee or an independent contractor is the employment agreement between the broker and the salesperson. This agreement lays out who controls the work, how the salesperson is compensated, and how taxes and benefits are handled—the practical details that determine employment status.

The listing contract governs representation of a seller in a specific transaction and does not address internal employment status. The property deed records ownership of the property, not the employment relationship. The mortgage agreement covers financing terms and likewise has no role in defining how the salesperson is classified.