California Real Estate Practice Exam

Is a written employment agreement between a salesperson and a broker optional or mandatory?

1. Optional

2. Mandatory

3. Suggested

4. Irrelevant

The correct answer is: Mandatory

A written employment agreement between a salesperson and a broker is indeed mandatory. This requirement is in place to ensure clarity and accountability in the working relationship. A written agreement outlines the terms of employment, including the responsibilities of both parties, commission structures, and expectations. This formal documentation not only protects the interests of both the broker and the salesperson but also ensures compliance with California real estate regulations. Having a clear and legally binding agreement helps to prevent disputes and misunderstandings that could arise from a verbal agreement or a lack of defined terms.