Under what condition is a person considered a direct employee when managing properties?

Study for the New Mexico Real Estate Exam. Use flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

A person is considered a direct employee when managing properties primarily if they receive a regular salary. This indicates an ongoing, employment-based relationship with the employer, which is a key factor in determining direct employment. Employees typically are subject to the employer's control regarding their work hours, tasks, and methods, creating a more structured and secure employment environment compared to independent contractors.

Receiving a regular salary typically means that the individual is on the payroll, has an employment agreement, and may receive benefits accorded to employees, which reinforces their status as direct employees. In contrast, individuals who manage properties for multiple owners or sign leases might operate under different arrangements, such as independent contracting or being in a temporary or commission-based position, which does not qualify them as direct employees.

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