Question 69

A broker who has licensed salespersons working under the broker's license MUST have a written agreement with each licensee in place specifying the terms of employment.

Having a written agreement with each licensee is essential as it outlines the specific terms of employment and the relationship between the broker and the salespersons, ensuring clarity and compliance with regulations.

A) an independent contractor's license and a policy and procedure manual available.

While having a policy and procedure manual is important for operational consistency, an independent contractor's license is not a requirement specifically related to the employment agreements between brokers and their salespersons. Therefore, this option does not address the core requirement.

B) the license of each salesperson posted for public display in the branch where the salesperson works.

Posting the licenses of salespersons may be beneficial for transparency, but it is not a mandatory requirement for brokers. This option does not fulfill the necessity of having formal agreements that define the employment terms.

C) a written agreement with each licensee in place specifying the terms of employment.

This option is correct because it emphasizes the legal requirement for brokers to have a formal written agreement with each salesperson. Such agreements are crucial for outlining the roles, responsibilities, and expectations of both parties, ensuring compliance with legal standards.

D) each salesperson's license available at the main office of the broker for immediate inspection upon request.

Although having licenses available for inspection is a good practice, it does not replace the need for a written employment agreement. This option focuses on accessibility rather than the formal relationship that must be established through written documentation.

Conclusion

The requirement for a written agreement with each licensee is fundamental to establishing a clear and legally binding relationship between the broker and the salespersons. While other options may contain elements of good practice, they do not satisfy the specific legal obligation that ensures transparency and clarity in the employment relationship, making option C the definitive correct answer.