Middleton real estate definitions
1. Brokers Lincense
ANSWER Person or company names 3 years as a sales person must make 6 sales per year as a minimum
plus 90 hours of education
2. Associate broker's license
ANSWER always goes to a person must work for broker
3. Principal associate broker
,ANSWER owner, partner, oflcer, or member there can be more than one principal associate broker not
allowed to transfer
4. Non-principal associate broker
ANSWER not the owner partner oflcer or member only allowed to have one. they can transfer
5. Sales person license
ANSWER Only to one person. Must work for a broker. they are allowed to transfer. Everything they do is in
the brokers name must have 40 hours of class and pass the state exam. must be at least 18
6. Independent contractor
ANSWER Sales people can be independent contractors. must have contract with broker agreeing to pay
own taxes (30%) 75% of their income is real estate transaction they receive a 1099 at the end of the year.
7. Employee
ANSWER They receive a W2 from employer and the employer with holds taxes from each check and unem-
ployment tax
,8. Sole Proprietor
ANSWER 1 owner
9. Partnership
ANSWER Only requires 1 person
Must have at least one principal asso. broker to run entity
10. General Partnership
ANSWER All partners are general partners have 100% liability each All general
partners should be principal asso. broker
11. Limited Partnership
ANSWER Entity is the broker At least one
limited partner
limited partner can only lose the money they put into the company
12. Limited Liability Partnership
, ANSWER Members liability is limited to their own acts and participation ways to get around IRS
13. Corporation
ANSWER The entity is the broker. Corporation obtains the broker license must have 1 active licensed oflcer
1 principal asso. broker all active oflcers in real estate shall be principal asso. broker
14. Limited Liability Company
ANSWER Brokers license is in the of the entity, 1 active principal asso. broker
15. Shall
ANSWER Must by law
16. Should
ANSWER Preferred by law
17. May
ANSWER With legal permission
18. Can
1. Brokers Lincense
ANSWER Person or company names 3 years as a sales person must make 6 sales per year as a minimum
plus 90 hours of education
2. Associate broker's license
ANSWER always goes to a person must work for broker
3. Principal associate broker
,ANSWER owner, partner, oflcer, or member there can be more than one principal associate broker not
allowed to transfer
4. Non-principal associate broker
ANSWER not the owner partner oflcer or member only allowed to have one. they can transfer
5. Sales person license
ANSWER Only to one person. Must work for a broker. they are allowed to transfer. Everything they do is in
the brokers name must have 40 hours of class and pass the state exam. must be at least 18
6. Independent contractor
ANSWER Sales people can be independent contractors. must have contract with broker agreeing to pay
own taxes (30%) 75% of their income is real estate transaction they receive a 1099 at the end of the year.
7. Employee
ANSWER They receive a W2 from employer and the employer with holds taxes from each check and unem-
ployment tax
,8. Sole Proprietor
ANSWER 1 owner
9. Partnership
ANSWER Only requires 1 person
Must have at least one principal asso. broker to run entity
10. General Partnership
ANSWER All partners are general partners have 100% liability each All general
partners should be principal asso. broker
11. Limited Partnership
ANSWER Entity is the broker At least one
limited partner
limited partner can only lose the money they put into the company
12. Limited Liability Partnership
, ANSWER Members liability is limited to their own acts and participation ways to get around IRS
13. Corporation
ANSWER The entity is the broker. Corporation obtains the broker license must have 1 active licensed oflcer
1 principal asso. broker all active oflcers in real estate shall be principal asso. broker
14. Limited Liability Company
ANSWER Brokers license is in the of the entity, 1 active principal asso. broker
15. Shall
ANSWER Must by law
16. Should
ANSWER Preferred by law
17. May
ANSWER With legal permission
18. Can
