PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
An independent contractor is a worker treated as operating independently rather than as an employee under the legal test relevant to the issue.
Practice of Real Estate
Competition and business conduct
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Independent contractor mean?
An independent contractor is a worker treated as operating independently rather than as an employee under the legal test relevant to the issue. Qualifying real estate agents can be statutory nonemployees for federal tax purposes when licensing, output-based compensation, and written-contract requirements are met.
How do you separate the nearest exam answer?
Tax classification is not identical to licensing supervision. A Georgia qualifying broker must supervise affiliated licensees even when a written agreement calls them independent contractors.
What changes or stays the same in Georgia?
Broker oversight, advertising rules, trust-fund controls, and compensation-through-broker requirements remain in force for Georgia affiliated licensees.
A salesperson's agreement states federal tax nonemployee treatment and compensation is based on transactions, but the qualifying broker still reviews advertising and transaction files.
The label in a contract does not erase statutory duties or control every employment-law test.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
A Georgia salesperson's written agreement says the salesperson is an independent contractor paid only on closed transactions. The salesperson wants to run ads without the qualifying broker reviewing them. What is correct?
- A
The contractor label frees the salesperson from supervision
- B
The broker must still supervise, whatever the tax label
- C
Supervision applies only to employees paid on a W-2
- D
The salesperson may skip review if the ads show the firm name
Independent contractor status is about tax and employment treatment, not licensing. A Georgia qualifying broker must supervise affiliated licensees, including their advertising, no matter what the agreement calls them. Ads must show the firm name, but that requirement does not replace the broker's review.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Practice of Real Estate complete lesson
https://www.passgeorgiarealestate.com/study-guide/practice-of-real-estate/employment-status
Official exam administration and content-outline source.
https://test-takers.psiexams.com/api/content/bulletin/4672Federal tax source for statutory nonemployee treatment of qualifying real estate agents.
https://www.irs.gov/businesses/small-businesses-self-employed/statutory-nonemployeesOfficial Georgia Secretary of State publication of Commission rules governing licensure and brokerage.
https://rules.sos.ga.gov/gac/520-1