What requirement exists for an independent contractor relationship between a real estate brokerage and a licensee?

An independent contractor relationship between a real estate brokerage and a licensee requires a written agreement primarily for tax purposes. This agreement outlines the terms of their working relationship, specifically indicating that the licensee operates as an independent contractor rather than an employee. This distinction is crucial because it affects tax liabilities, eligibility for benefits, and workplace rights.

Without this written agreement, it may be challenging to substantiate the independent contractor status, which can lead to potential legal and financial ramifications. An agreement helps clarify expectations, responsibilities, and the nature of the business relationship. It also helps the brokerage avoid certain liabilities that may arise in employer-employee relationships.

In contrast, the other options do not relate directly to the establishment of an independent contractor relationship. Prior experience in real estate, while valuable, is not a requirement for the contractual relationship itself. A monthly salary payment structure contradicts the concept of independent contracting, which typically involves commission-based earnings rather than a fixed salary. Joint ownership of properties is irrelevant to the nature of the relationship and does not pertain to the contractual distinction or tax implications related to independent contractors.