CHAPTER 2 Flashcards
A salesperson may not
accept any form of compensation except from his or her supervising broker
maintain an escrow account
work for more than one New Jersey broker
Place of business
every broker who is a resident of NJ must maintain a place of business in the state
If in home -separate door and license of the broker and those of any assotittes should be prominently displayed
the main office and persons working in it must be
under full-time direct supervision of broker or a qualified broker-salesperson
Branch office
- under direct supervision of a broker or broker-salesperson and must have a duplicate license
recorded with the Commission
Trust Account (escrow account)
- must be establish by broker in a financial institution
-deposit money belonging to other people (Ernest money deposit, rent collections)
the name of the financial institution and account number must be reported to the commission both at license application and the time or renewal
Commingling (mixing)
missing own funds with money in the trust account
leaving money from commission in a escrow account for more than five business days
might result in commingling
advance fees
client place money for more than $25 broker gives the client an account of how the money is being spent within 90 days.
Cash deposits or withdrawals
-writeen receipt broker keeps a copy of the receipt
more than $10,000 need to be reported to the Internal Revenue Service.
Withdrawals from a trust account must be:
made payable to a specific person never to cash
Permanent Records must be kept for:
6 years
Sales Contract: who? and what do they need?
every person that: signs a listing contract, sales contract or lease should Duplicate original
Commission are negotiable between client and?
broker
No contract can contain anything indicating
prescribed fee schedule.
licensees can prepare sales contracts only for :
one to 4-family homes and
single building lots
accomplished on a letter of intent is for:
the sale or rental of commercial or industrials properties
non binding meaning
Binding means you’re legally bound to something, while nonbinding means you aren’t.
Sales Contracts
buyer and seller have the right to seek a
an attorney who may disapproved a contract within 3 business days
all written offers must be forwarded to the sellers
within 24 hours.
and at the time of listing owners of property must be furnished with a copy of the attorney generals memorandum regarding the New Jersey law agains discrimination
if a real estates broker is also a licensed insurance broker and offers services of such this has to be:
confirmed separately in print not less than five days before actual closing of tittle
broker must keep copies of all unaccepted offers to purchase for at least
6 years
any licensee involved in sales home 1, 1:4,vacant one family lots of residential lease transactions for more than 125 days
is required to supply information on business relationships to the buyers and sellers
broker as disclosed dual agent
REC allows a broker to represent both parties in a transaction
broker as transaction broker
function as transaction brokers without creating an agency relationship with any the parties to a transaction
Brokers and saleperson’s agreement
- compensation rate paid to the salesperson
- 10 days to pay after the check as cleared
- rate and compensation after the salesperson leaves the broker’s firm
- a provision that any future changes to the contract will be binding only if in written and singed by both parties
5 days to put money in and 5 days to take money out
Funds in trust account - escrow account
Advance fee in escrow account
90 max
