An independent contractor is a person or business who performs services for another person under an express or implied agreement and who is not subject to the other's control, or right to control, the manner and means of performing the services. The person who hires an independent contractor is not liable to others for the acts or omissions of the independent contractor. An independent contractor is distinguished from an employee, who works regularly for an employer. The exact nature of the independent contractor's relationship with the hiring party is important since an independent contractor pays their own Social Security, income taxes without payroll deduction, has no retirement or health plan rights, and often is not entitled to worker's compensation coverage.
There are a number of factors which to consider in making the decision whether people are employees or independent contractors. No one factor is controlling, and the characterization of the relationship by the parties is also not controlling.
One of the most important considerations is the degree of control exercised by the company over the work of the workers. An employer has the right to control an employee. It is important to determine whether the company had the right to direct and control the workers not only as to the results desired, but also as to the details, manner and means by which the results were accomplished. If the company had the right to supervise and control such details of the work performed, and the manner and means by which the results were to be accomplished, an employer-employee relationship would be indicated. On the other hand, the absence of supervision and control by the company would support a finding that the workers were independent contractors and not employees. Whether or not such control was exercised is not the determining factor, it is the right to control which is key.
Another factor to be considered is the connection and regularity of business between the independent contractor and the hiring party. Important factors to be considered are separate advertising, procurement of licensing, maintenance of a place of business, and supplying of tools and equipment by the independent contractor. If the service rendered is to be completed by a certain time, as opposed to an indefinite time period, a finding of an independent contractor status is more likely.
Maryland Real Estate Salesman Independent Contractor Agreement with Real Estate Loan Broker Overview: The Maryland Real Estate Salesman Independent Contractor Agreement with Real Estate Loan Broker outlines the contractual agreement between a real estate salesman and a real estate loan broker in the state of Maryland. This agreement establishes the terms and conditions under which the salesperson will provide services as an independent contractor to the broker, including the rights, obligations, and compensation of both parties involved. Key Terms and Clauses: 1. Parties Involved: — Identifies the legal names of the real estate salesman and the real estate loan broker entering into the agreement. — Specifies the addresses and contact details of both parties. 2. Independent Contractor Relationship: — Clarifies that the real estate salesman is an independent contractor and not an employee of the broker. — Outlines the control and supervision the broker will exercise over the salesperson's activities. 3. Term of Agreement: — Specifies the duration of the agreement, including the start and end date. — Outlines the conditions for termination and the notice period required. 4. Services to be Rendered: — Defines the specific services that the real estate salesman will provide, such as marketing properties, conducting showings, and negotiating deals. — Outlines any additional responsibilities, such as attending team meetings or training programs. 5. Compensation: — Details the method of payment for the salesperson's services, such as commission, a fixed fee, or a combination of both. — Specifies the percentage or amount the salesperson will receive for each successful transaction. 6. Exclusive Representation: — Clarifies whether the salesperson will exclusively work with the real estate loan broker or if they may engage with other brokers or clients simultaneously. 7. Expenses: — Specifies whether expenses incurred by the salesperson, such as marketing materials or travel, will be reimbursed by the broker. — Outlines the process for submitting expense reports and receiving reimbursement. 8. Confidentiality and Non-Disclosure: — Establishes a confidentiality agreement to protect any proprietary information shared between the parties during the course of their engagement. 9. Governing Law: — Specifies that the agreement will be governed by the laws of the state of Maryland in case of any disputes. Types of Maryland Real Estate Salesman Independent Contractor Agreements with Real Estate Loan Brokers: 1. Exclusive Independent Contractor Agreement: — This type of agreement establishes an exclusive relationship between the real estate salesman and the broker, prohibiting the salesperson from working for other brokers or engaging with competing clients. 2. Non-Exclusive Independent Contractor Agreement: — In this agreement, the real estate salesman is allowed to work with multiple brokers simultaneously, offering more flexibility in terms of client base and opportunities. 3. Fixed Fee Agreement: — This type of agreement compensates the salesperson with a fixed fee for each transaction, regardless of the property's value or the broker's commission. 4. Commission-Based Agreement: — In a commission-based agreement, the salesperson receives a percentage of the broker's commission earned from each successful sale, usually based on a predetermined split.Maryland Real Estate Salesman Independent Contractor Agreement with Real Estate Loan Broker Overview: The Maryland Real Estate Salesman Independent Contractor Agreement with Real Estate Loan Broker outlines the contractual agreement between a real estate salesman and a real estate loan broker in the state of Maryland. This agreement establishes the terms and conditions under which the salesperson will provide services as an independent contractor to the broker, including the rights, obligations, and compensation of both parties involved. Key Terms and Clauses: 1. Parties Involved: — Identifies the legal names of the real estate salesman and the real estate loan broker entering into the agreement. — Specifies the addresses and contact details of both parties. 2. Independent Contractor Relationship: — Clarifies that the real estate salesman is an independent contractor and not an employee of the broker. — Outlines the control and supervision the broker will exercise over the salesperson's activities. 3. Term of Agreement: — Specifies the duration of the agreement, including the start and end date. — Outlines the conditions for termination and the notice period required. 4. Services to be Rendered: — Defines the specific services that the real estate salesman will provide, such as marketing properties, conducting showings, and negotiating deals. — Outlines any additional responsibilities, such as attending team meetings or training programs. 5. Compensation: — Details the method of payment for the salesperson's services, such as commission, a fixed fee, or a combination of both. — Specifies the percentage or amount the salesperson will receive for each successful transaction. 6. Exclusive Representation: — Clarifies whether the salesperson will exclusively work with the real estate loan broker or if they may engage with other brokers or clients simultaneously. 7. Expenses: — Specifies whether expenses incurred by the salesperson, such as marketing materials or travel, will be reimbursed by the broker. — Outlines the process for submitting expense reports and receiving reimbursement. 8. Confidentiality and Non-Disclosure: — Establishes a confidentiality agreement to protect any proprietary information shared between the parties during the course of their engagement. 9. Governing Law: — Specifies that the agreement will be governed by the laws of the state of Maryland in case of any disputes. Types of Maryland Real Estate Salesman Independent Contractor Agreements with Real Estate Loan Brokers: 1. Exclusive Independent Contractor Agreement: — This type of agreement establishes an exclusive relationship between the real estate salesman and the broker, prohibiting the salesperson from working for other brokers or engaging with competing clients. 2. Non-Exclusive Independent Contractor Agreement: — In this agreement, the real estate salesman is allowed to work with multiple brokers simultaneously, offering more flexibility in terms of client base and opportunities. 3. Fixed Fee Agreement: — This type of agreement compensates the salesperson with a fixed fee for each transaction, regardless of the property's value or the broker's commission. 4. Commission-Based Agreement: — In a commission-based agreement, the salesperson receives a percentage of the broker's commission earned from each successful sale, usually based on a predetermined split.
