The State of Washington's highest court has considered whether a corporation owned by two
licensed real estate salespeople substantially complied with the State's license laws, allowing it to proceed with a lawsuit seeking compensation from a homebuilder.
According to federal law, for federal tax purposes,
real estate agents will not be treated as employees if these three requirements are met: (1) The agent must be
licensed; (2)
Substantially all income must be made on the basis of sales or output, not on hours worked; and (3) There must be a written contract between the
salesperson and company stipulating independent contractor status.