What is the definition of an independent contractor in the context of real estate?

An independent contractor in the context of real estate is defined as an individual who operates under a contract for service with a brokerage. This means that they are not direct employees of the brokerage, but rather work independently while being associated with the brokerage for conducting their real estate transactions. They have the ability to manage their own business operations, including how they generate leads, manage client relationships, and handle marketing, which distinguishes them from traditional employees.

In this arrangement, independent contractors take on their own business risks and responsibilities, including managing their own expenses and taxes. This structure offers flexibility and autonomy that often appeals to real estate professionals, allowing them to work in a manner that suits their personal and professional styles. It is essential to understand this definition, as it impacts various aspects of how independent contractors operate within the real estate sector and the relationship dynamics with the brokerage they are affiliated with.