Chapter 2 - Comission Rules and Regulations

Question 0

Commingling

Answer 0

Forbidden - Mixed escrow funds with the broker’s own money.

Question 1

Branch office

Answer 1

Must be under the the direct supervision of a broker or broker-salesperson and must have a duplicate license. Names of all licensees and the branch office supervisor must be recorded with the Commission and prominently displayed in the branch office. No branch office can be the home of a salesperson or broker-salesperson.

Question 2

Duplicate Original

Answer 2

Every person who signs a listing contract. sales contract or lease should immediately receive a duplicate original. Licensees must provide multiple copies for the parties signatures.

Question 3

Escrow Account

Answer 3

A separate “special trust” account must be established in an authorized financial institution in New Jersey, to be used for the deposit of all money belonging to other persons (earnest money, deposits, rent collections and the like). The name of the financial institution, and the account number must be reported to the Commission both at application and at the time of renewal. Brokers are required to deposit monies within 5 business days of acceptance. Salespersons should hand over all monies to their broker immediately.

Question 4

Guilty knowledge

Answer 4

Awareness of wrongdoing without any attempt to stop it.

Question 5

Probation

Answer 5

Least severe discipline available to the Commission.

Question 6

Suspension

Answer 6

Temporary lifting of a real estate license.

Question 7

Waiver of Broker Cooperation

Answer 7

Seller’s statement that only one office will be marketing the property.