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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

This does not surprise me with respect to working for a builder... those agents live under the structure of significant employment rules... from work hours, vacation times, etc.

Sep 19, 2019 07:23 AM
Ryan Huggins - Thousand Oaks, CA - Thousand Oaks, CA
Residential Real Estate and Investment Properties

These just got ironed out in California.  New law passed for "gig workers" that exempted realtors, insurance agents, stock brokers and deep sea fishermen from employee status.  Out here new homes sales agents are employees of the builders.

Sep 19, 2019 12:28 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

 I can't even relate to the set up of having a draw or getting an advance in commission!!!!  I had the listing....did the marketing and the coverage was on a schedule I created.... friday, sat and sun afternoons..... 1 to 4.... that's it!!! 

I had other business and other builders who were at different stages of construction, so my income was a steady flow.... everyone had attorneys for p& s agreements....the builders atty handled all of the legal end.... my job was to walk the buyers throught the process until all selections were made and finalized.... they didn't communicate with me during construction unless there was no on-site supervisor.....

there's no way I covered any project every day, all day..... lockboxes were used and I would accompany if the buyer agent wanted me to do that.... they usually did......

Sep 19, 2019 08:54 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

The people that work for builders tend to lean more on the employee side of the equation. 

Sep 19, 2019 07:59 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Interesting.  In many ways.  

Sep 19, 2019 07:56 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Coldwell Banker had a similar lawsuit about 5 years ago while I was still with them; the independent contractor model is rapidly changing with the new laws and old school employers are caught in the crossfire if they do not adapt.

Sep 19, 2019 07:12 AM
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

Just read the article. 

Well, most of the agents are happy to work for developer's offices. They knew what they are getting. BUYERS! And prospective sellers and landlords. 


Sep 19, 2019 11:17 AM
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

When they get real customers and commissions - great. 

When they project is canceled - lawsuit - hard to return advance commission.

Sep 19, 2019 10:12 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Business in our country would be much better it the govt would stop hampering out ability to hire good talent by forcing employers to overpay those with little talent.

Sep 19, 2019 09:25 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy


Definitely an interesting read.  Thank you.  A

Sep 19, 2019 09:18 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

No one made her stay or held her there because she is/was an independent contractor, just like on-site real estate salespeople in builder communities. They are required to attend sales meetings, stay in one place during business hours and are compensated when a contract is written...hmmmm, interesting indeed!

Sep 19, 2019 08:26 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Interesting, thanks for the heads up.

Sep 19, 2019 08:03 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Hard to imagine the Employee Model in Real Estate

Sep 19, 2019 07:46 AM
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

In the example cited, it must be noted that a real estate sales license is not required to work in a builders sales center. Using the real estate agent identifier is misleading.

However, the independent contractor status has been severely abused most notably by 'white column' old school real estate franchises.

ALL of them benefit by avoiding the need to invest in their 'employees.' It may be too late for brokers and franchises to confess and repent. We, as agents, should be prepared to reposition how they execute real estate transactions. And is most likely to be in the role of a BROKER.

Now, when days, hours, location, job tasks, wages are dictated...that person is an EMPLOYEE! Clearly a sales agent locked into a showing center with office duties and inflexible compensation is an employee. 

By the way, this is also what Uber is imposing on drivers which is what inspired the CALIF lawsuit.

Sep 19, 2019 07:37 AM
Roy Kelley
Retired - Gaithersburg, MD
Thanks for the link.
Sep 19, 2019 12:11 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The line has long been fine between these two. One day one will win-out

Sep 19, 2019 09:35 AM
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Interesting article! I am not surprised with in house agents fora builder, they unlike the rest of us are very restricted! 

Sep 21, 2019 02:45 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

It is hard to argue that an agent working for a large builder is not an employee. They dictate the hours and the method of selling in many cases, including mandatory in-house training.

Sep 20, 2019 04:42 AM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

This would have applied to me BIG TIME but thank goodness I no longer need to know as I'm retired Lyn Sims 

Sep 19, 2019 11:29 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

The very reason I would prefer to stay a REALTOR, and not work for a builder.

Oct 07, 2019 04:00 PM
John Juarez
The Medford Real Estate Team - Fremont, CA

Did not read the article because California is wrestling with the same issues. So far, real estate agents with a broker relationship are still independent contractors. Who knows what the future holds. Many brokers would go out of business if they had to provide "employee benefits", in my opinion.

Sep 23, 2019 05:08 PM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe


Sep 20, 2019 01:56 PM
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

 It does not sound like they were able to set their schedule or determine how they wanted to perform their duties to meet the end goal. Interesting the prior case was settled out of court. 

Sep 20, 2019 12:13 PM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Thanks, Lyn Sims !

Sep 19, 2019 02:17 PM