PSI Virginia Real Estate Practice Exam

What defines an employee in real estate?

1. A person who works independently

2. A person working without any oversight

3. A person employed for wages or salaries at any level

4. A person who represents multiple clients simultaneously

The correct answer is: A person employed for wages or salaries at any level

A person employed for wages or salaries at any level is defined as an employee in the real estate context because this designation typically implies a structured working relationship. Employees in real estate usually receive direct compensation from an employer, have specific job duties, and are subject to the policies and procedures of their employer. They may also benefit from employment-related resources, such as training, marketing materials, and administrative support. In contrast, individuals who work independently do not have such an employer-employee relationship; instead, they operate as independent contractors, which does not fit the definition of an employee. Those who work without oversight often indicate a level of independence that would not apply to employees who are managed and guided by an employer. Lastly, representing multiple clients simultaneously is a function that can apply to both employees and independent contractors, but it does not specifically define what constitutes an employee in real estate.