Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What is one characteristic of independent contractors in real estate?

1. They follow strict company policies

2. They must share their commission

3. They are their own boss

4. They cannot advertise

The correct answer is: They are their own boss

Independent contractors in real estate are characterized by their ability to operate as their own boss. This means they have the autonomy to manage their own time, make decisions regarding their business, and establish their own methods for generating leads and conducting transactions. This level of independence allows them to set their own schedules and choose how to market their services. The other options do not accurately reflect characteristics of independent contractors in the real estate industry. For example, being required to share their commission usually pertains to employees in a traditional employment model, while independent contractors typically retain a greater portion of their earnings. Furthermore, independent contractors have the freedom to advertise their services as they see fit, allowing them to develop personal branding and attract clients effectively. Following strict company policies is more relevant to employees, who must adhere to the rules set by their employer.