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Real Estate Exam > Ch. 1 > Flashcards

Ch. 1 Flashcards

1
Q

What is Land?

A

God’s green earth. Everything is on the land without having been placed there by a person.

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2
Q

What is Real Estate?

A

Land that have had improvements (roads, buildings, etc.)

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3
Q

Three Physical characteristics of Land?

A

Immobility, Indestructibility, Uniqueness

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4
Q

Three Economic characteristics of Land?

A

Scarcity, Improvements, Permanence.

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5
Q

Who needs an NJ real Estate License?

A

Any person who assists another person or entity to buy, sell, lease, exchange or transfer property from one party to another in return for consideration must hold a New Jersey real estate license

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6
Q

Who does NOT need a NJ real estate license?

A

Persons or entities selling or leasing their own property. FSBO (For sale by owner)

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7
Q

Who does NOT need an NJ real estate license? #2

A

Persons employed by an owner to manage the owner’s property.

Persons operating under the authority of a court order, such as
trustees, administrators, receivers, executors, sheriffs, guardians, etc.

Insurance companies licensed in New Jersey when they acquire or dispose of company-owned property.

Banks selling their own (or foreclosed) properties.

Trustees operating under a deed of trust.

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8
Q

Who does NOT need a NJ real estate License? #3

A

Attorneys licensed in New Jersey who are assisting clients to buy, sell or
lease property as a normal part of their law practice.

An attorney who assists another party buy, sell or lease real estate in a transaction that is separate from the attorney’s normal law practice does need a real estate license.

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9
Q

What is N.J.A.C Title 45?

A

The New Jersey Real Estate License Act

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10
Q

What is N.J.A.C. Title 11

A

Primarily the rules and regulations of the
New Jersey Real Estate Commission (NJREC)

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11
Q

What are the 4 sections of the NJREC?

A

1: Real Estate Education section.
2: Investigations section.
3: Hearings and Regulatory Affairs section.
4: Bureau of Subdivided Land Sales Control.

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12
Q

What does the NJREC Real Estate Education Section do?

A

The Real Estate Education Section examines applications from real estate schools and instructors, reviews the qualifications of applicants for referral agent, salesperson, and broker licenses, and oversees licensed instructors and schools that are providing pre-licensing and continuing education classes.

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13
Q

What does the NJREC Investigations section do?

A

The Investigations Section handles incoming complaints that have been lodged against licensees by the public, by licensees or other agencies. Its remit includes investigation of complaints against violations of the Real Estate Licensing Act by licensed individuals and firms as well as complaints against unlicensed persons who are engaging in activities that require licensure.

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14
Q

What does the NJREC Hearing and Regulatory Affairs section do?

A

The Hearings and Regulatory Affairs Section takes cases that have been referred by the Investigations Section and conducts hearings, prosecutions and processes changes in the Commission’s regulatory codes.

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15
Q

What does the NJREC Bureau of Subdivided Land Sales Control do?

A

The Bureau of Subdivided Land Sales Control exists to protect New Jersey citizens. It is a division of the Real Estate Commission and administers and enforces the provisions of the New Jersey Real Estate Sales Full Disclosure Act. The bureau reviews applications from out of state developers for the registration of new projects, inspects conditionally registered projects, and reviews project renewal applications.

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16
Q

What are exemptions of the 75 hour pre-licensing course?

A

Exempt from 75-hour pre-licensing course if candidate earned a college degree in real estate.
Completion of 75 classroom hours in real estate completed within three years of making application.

Salespersons who hold or held a real estate license issued by another state, provided that:
◦ The applicant has satisfactorily completed a prelicensure course of real estate education at a proprietary school, college or university in that state;
◦ The prelicensure course was approved by the real estate licensing authority of that state; ◦ The total number of classroom hours included in the course was at least 75;
◦ The applicant qualified for licensure in that state by examination; and
◦ The applicant was actively licensed in that state within three years of applying for the waiver.

17
Q

What are the types of NJ Real Estate License?

A

Referral Agent, Broker-Salesperson, Broker, Instructor

18
Q

What is the difference between a Broker and a Broker-Salesperson?

A

Same education
* Same state exam
* Same license fees
“The” Broker is responsible for all employees and activities of the brokerage.
Broker-Salesperson works under the supervision of the broker of record.

19
Q

What do you need to open a real estate brokerage?

A
  • If in a residence, can only be the broker’s.
  • Must have a sign and a separate entrance
    visible from the street.
  • Must have broker’s name, followed by
  • “Licensed Real Estate Broker.”
  • Must prominently display licenses of all licensees.
  • Every real estate office must have a sign on the exterior with the name of the brokerage and the name of the broker of record.
20
Q

How can you open a branch office?

A
  • Must have a supervising broker who is responsible for all operations of the branch office.
  • Supervising broker works under the authority of the broker of record.
  • Cannot be in a residence.
  • Sign must show broker’s name as “Licensed Real Estate Broker.” followed by name of “Office Supervisor.”
  • Must prominently display licenses of all licensees attached to the branch office.
21
Q

Corporate Licenses must….

A

Must be represented by at least one partner or officer with a NJ broker’s license acting as broker of record.

22
Q

Upon the death or permanent incapacity of the broker . . .

A
  • A broker-salesperson can be appointed as broker of record.
    ▪If no broker-salesperson is available, a salesperson with at least 3 years’ full- time experience may apply to the NJ Real Estate Commission within 30 days of the broker’s death.
    ▪The REC may issue him/her with a Temporary Broker’s License.
    ▪He or she has a maximum of one year from the broker’s death to complete all the required broker education requirements, pass the exam and background check and submit an application for a broker’s license.
23
Q

NJ has no reciprocity with other states

A

TRUE

24
Q

Licensees must NOT

A

▪Accept compensation from anybody except their broker.
▪Pay kickbacks, finder’s fees or similar compensation to an unlicensed person.
▪Work for more than one New Jersey broker at a time.
▪Conspire or cooperate with any other broker to fix prices or participate in anticompetitive trade practices.
▪Represent two parties in the same transactions without disclosing that to all parties.

25
Q

An Unlicensed Agent May..

A
  • Perform clerical duties.
  • Prepare contracts and leases, provided they
    are reviewed by a licensee prior to them
    leaving the office.
  • Place or remove lockboxes and signs.
  • Prepare and send marketing materials.
  • Host an open house for licensees only.
  • Process listings and sales, such as entering
    listings into the MLS and taking photographs
    of properties.
  • Following the “contract to close” paperwork trail.
26
Q

An Unlicensed Agent May NOT…

A
  • Answer questions from the public on such queries as the price of a listed property, its taxes, mortgage rates, and availability.
  • Host a public open house.
  • Show properties to clients or customers.
  • Make lead generation marketing calls.
  • Participate in home inspections on behalf of
    the broker.
  • Discuss terms of a contract or lease with
    anybody outside of the broker’s office.
27
Q

Consideration is..

A

The exchange of something of value in a contract

28
Q

A Licensee who cannot actively participate in a sale is..

A

Referral Agent

29
Q

A Broker-Salesperson is…

A

A person with a broker’s license who works under the authority of a broker

30
Q

Deadline to apply for license after graduating from real estate school

A

One year

31
Q

Who can an agent only accept compensation for a real estate transaction?

A

ONLY from their broker

32
Q

in the firm holding a broker’s license
Deadline for broker to report a licensee’s termination to the REC

A

Five business days

33
Q

Employee Business Relationship Agreement is

A

Contract between broker and licensee

34
Q

Temporary Broker’s License is

A

License issued to qualified salesperson after broker dies and there is nobody else in the firm holding a broker’s license

35
Q

A Realtor is

A

Member of National Association of Realtors®

Real Estate Exam (3 decks)

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