Question

What independent contractor form must be used by brokers in California?

a)The California Association of Realtors Independent Contractor Agreement form

b)The California Brokerage Agreement form

c)The Real Estate Association Claim form

d)Any independent contractor form agreement

Answer 1

ANSWER : d)Any independent contractor form agreement

REASON :

The California independent contractor agreement is used to define a client’s expectations when employing the services of an individual working independently to fulfill a duty. The client is able to specify the services they require as well as the designated wage, completion date, termination procedures, and other matters which help establish the working relationship between both parties. It is important to note that improperly classifying a worker as an “independent contractor” can be dangerous for the hiring party as they may then fail to provide sufficient insurance coverage for the worker while being liable for expenses should an accident occur. Drafting a contract agreement supports the contractor’s claim to independent status and reduces the risk of operating under the laws governing standard employees.