Question

A homebuilder negotiates a deal with a farmer to give the farmer a percentage of the profit on homes the homebuilder builds and sells. The homebuilder's salesman, who makes a salary of $50,000 per year, is not a licensed broker. Does the salesman need a real estate license?
A. No, because homebuilders and their agents are exempt

B. Yes, because the salesman is not making minimum wage

C. Yes, because the farmer is making a percentage of the profit

D. Yes, because the homebuilder does not own the land

Answer 1

Answer:

The answer is D. Yes, because the homebuilder does not want to own land

Explanation:

A real estate license allows realtors to legally sell, broker, or rent real estate to prospective tenants and buyers on behalf of a real estate brokerage.

In order to legally work in real estate, the homebuilder need to procure a real estate license in the land where he wants to work, as requirements vary from state to state.

Answer 2

Answer:

C. Yes, because the farmer is making a percentage of the profit

Explanation:

If the farmer is being used as sales man and is making a 50% profit on the home he sells, then this means he is an employee and to do his job the right way he needs to have a real estate licence for that.

Hope this Helps.

Goodluck.