Chapter 2: Commission Rules and Regulations REVIEW QUESTIONS Flashcards
A licensed salesperson is allowed to
leave one broker and affiliate with another.
Under some circumstances, a real estate office may be in the home of
a broker.
Broker Waldo Rodriguez wants to open a branch office in a new shopping mall in the next town. The office can be supervised by
a broker-salesperson
Salesperson Stan Clemenzio accepts an earnest money deposit and turns it over to his broker, Roberta Lee. Roberta must
deposit it within five days in a trust account.
An escrow account may be opened in
any authorized New Jersey financial institution.
A broker must keep copies of
contracts for six years.
Every person who signs a contract is entitled to receive a duplicate original. When are they entitled to receive it?
Immediately
Every sales contract prepared by a broker must contain a notice that
the buyer and seller may seek attorney review within three business days.
Even when the broker is the seller’s agent, buyers are entitled to
fair dealing
For a license law violation, the Real Estate Commission could fine a licensee as much as
$50,000.
The Commission will rule that someone could never again get a license after how many violations?
Three
Salesperson Joe Kenty is indicted for possession of a controlled substance with intent to sell and is out on bail until the trial. The Real Estate Commission may
suspend his license.
The Real Estate Commission must give a licensee how much notice before a hearing is held on a possible violation?
10 days
Sun City Realty holds a door-prize drawing at a weekend open house it runs. This practice
violates the Commission’s rules.
Donna White, a broker, is offering her mother’s house for sale and will charge no commission. Should she reveal that she is a licensed agent?
Yes, as soon as she meets a prospective buyer.
Which statement about broker-run advertisements in newspapers is correct?
Advertising offering free appraisals is prohibited, although CMAs are permitted.
The “reasonable effort” licensees are required to make to determine all material information about a property’s physical condition could normally include all of the following except
contracting with a professional to perform an in-depth inspection of the property prior to entering into any agency agreement with the seller.
A New Jersey licensee is permitted to represent both parties to a transaction if he or she obtains the
informed, written consent of the seller, buyer, and any other agent involved.
Any agreement between competing offices to establish standard commission rates is referred to as
illegal price-fixing.
A salesperson working for Broker Betty Barrett was disciplined for pursuing a flagrant and continued course of misrepresentations, making false promises, and failing to pay over money belonging to others. In this case, Betty’s license
will be suspended or revoked only if Betty knew about the salesperson’s activities and did nothing about it.
Rebate of part of a commission may be paid to a
buyer only.
