C-RETS Practice Questions - Certified Real Estate Team Specialist (NAR REBI) Exam

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A team leader wants to compensate a new buyer agent on a graduated split: 50/50 until $25,000 in GCI, then 60/40, then 70/30 after $75,000. What is the primary advantage of a graduated split?

It eliminates the need for a written independent contractor agreement It rewards production and incentivizes agents to stay and grow with the team It guarantees a minimum income that satisfies state minimum wage law It allows the team to classify agents as W-2 employees without payroll taxes

Correct Answer:

It rewards production and incentivizes agents to stay and grow with the team

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