CHAPTER 2

Question 1

A salesperson may not

Answer 1

accept any form of compensation except from his or her supervising broker
maintain an escrow account
work for more than one New Jersey broker

Question 2

Place of business

Answer 2

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

Question 3

the main office and persons working in it must be

Answer 3

under full-time direct supervision of broker or a qualified broker-salesperson

Question 4

Branch office

Answer 4

• under direct supervision of a broker or broker-salesperson and must have a duplicate license
  recorded with the Commission

Question 5

Trust Account (escrow account)

Answer 5

• 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

Question 6

Commingling (mixing)

Answer 6

missing own funds with money in the trust account

Question 7

leaving money from commission in a escrow account for more than five business days

Answer 7

might result in commingling

Question 8

advance fees

Answer 8

client place money for more than $25 broker gives the client an account of how the money is being spent within 90 days.

Question 9

Cash deposits or withdrawals

Answer 9

-writeen receipt broker keeps a copy of the receipt

more than $10,000 need to be reported to the Internal Revenue Service.

Question 10

Withdrawals from a trust account must be:

Answer 10

made payable to a specific person never to cash

Question 11

Permanent Records must be kept for:

Answer 11

6 years

Question 12

Sales Contract: who? and what do they need?

Answer 12

every person that:
signs a listing contract,
sales contract or 
lease should 
Duplicate original

Question 13

Commission are negotiable between client and?

Answer 13

broker

Question 14

No contract can contain anything indicating

Answer 14

prescribed fee schedule.

Question 15

licensees can prepare sales contracts only for :

Answer 15

one to 4-family homes and

single building lots

Question 16

accomplished on a letter of intent is for:

Answer 16

the sale or rental of commercial or industrials properties

Question 17

non binding meaning

Answer 17

Binding means you’re legally bound to something, while nonbinding means you aren’t.

Question 18

Sales Contracts

buyer and seller have the right to seek a

Answer 18

an attorney who may disapproved a contract within 3 business days

Question 19

all written offers must be forwarded to the sellers

Answer 19

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

Question 20

if a real estates broker is also a licensed insurance broker and offers services of such this has to be:

Answer 20

confirmed separately in print not less than five days before actual closing of tittle

Question 21

broker must keep copies of all unaccepted offers to purchase for at least

Answer 21

6 years

Question 22

any licensee involved in sales home 1, 1:4,vacant one family lots of residential lease transactions for more than 125 days

Answer 22

is required to supply information on business relationships to the buyers and sellers

Question 23

broker as disclosed dual agent

Answer 23

REC allows a broker to represent both parties in a transaction

Question 24

broker as transaction broker

Answer 24

function as transaction brokers without creating an agency relationship with any the parties to a transaction

Question 25

Brokers and saleperson’s agreement

Answer 25

• 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

Question 26

5 days to put money in and 5 days to take money out

Answer 26

Funds in trust account - escrow account

Question 27

Advance fee in escrow account

Answer 27

90 max