PSI New Jersey Real Estate State Practice Exam

A licensee affiliated with a principal broker as an independent contractor must receive which of the following from the principal broker?

1. Support for personal marketing strategies

2. Training in different real estate strategies

3. Advertising resources and an independent contractor agreement with compensation based on production

4. Legal advice in disputes

The correct answer is: Advertising resources and an independent contractor agreement with compensation based on production

A licensee affiliated with a principal broker as an independent contractor must receive an independent contractor agreement with compensation based on production, along with advertising resources. This is fundamental because the relationship between the principal broker and the licensee is structured to allow for flexibility and independence in managing their business. The independent contractor agreement outlines the terms of their working relationship, including expectations and the method of compensation. By focusing on production as a basis for compensation, the broker incentivizes the licensee to maximize their efforts in generating sales and closing deals. Advertising resources are also necessary, as these tools enable the independent contractor to effectively market properties and showcase their services. Having access to such resources supports the licensee's business while still maintaining their independent status. This structure allows for a mutually beneficial partnership where both the broker and the licensee can thrive in the competitive real estate market. Other options mention training and support that, while potentially beneficial, do not capture the essential contractual and business relationship components inherent in the independent contractor model.