Chapter 3 - NJ License Laws Flashcards
What is the NJSA Title 45, Chapter 15?
New Jersey Real Estate License Act, which was passed in 1921, was designed to license and regulate brokers and salespersons and to establish a Real Estate Commission, further empowered to develop rules and regulations to protect the public.
What is the NJAC 11:5?
The Rules and Regulations of the New Jersey Real Estate Commission
What is the NJREC and what does it do?
The New Jersey Real Estate Commission (NJREC) operates as a Division of the Dept. of Banking and Insurance, which is responsible for providing the Commission with personnel and operating funds. The Division maintains records, which are open to public inspection, handles licensing matters and public inquiries, investigates complaints, provides for licensee regulation and monitors out-of-state land sales to our residents. It constitutes 8 members all appointed by the Governor for a term of 3 years.
Where should your license been displayed?
A broker must maintain a main office displaying their license certificate of the broker and all licensed persons in his employ. If a broker has multiple offices, then a brand office license is required for each office and the brand office must be under proper supervision of a licensed broker-salesperson. If a sales person is let go from the broker’s office, then within 5 days the broker must return the license to the NJREC. Additionally, salesperson are required to carry a pocket card from their broker with them while doing business.
What is a referral agent?
a natural person whose brokerage-related activities are limited to referring prospects for the sale, purchase, exchange, leasing or rental of real estate to the broker through whom he or she is licensed. Must be employed by only one broker and cannot also be licensed as a broker or salesperson themselves.
When do real estate licenses renew?
All real estate licenses must be renewed biennially on July 1, in odd-numbered years. Licenses renewed after this date required additional payment of a late fee. All brokers and salespersons are required to complete 12 hours of CE in order to be eligible to renew biennially.
What happens if a broker passes away?
NJREC issues a temporary broker license to salesperson with 3+ years of experience. Request must be made within 30 days and is good for one year.
What is irrevocable consent?
Residents of other states may be licensed in NJ, but are required to provide an executed irrevocable consent form agreeing to be open to suit in our state courts if they violate our license laws or rules/regulations
What is license lending?
lending of license for the benefit of another or attempting to circumvent statute or regulation by such action is forbidden. As such, brokers are required to be physically present in their main office location at least one day each week.
What is the Guaranty Fund?
is a state-regulated fund used to indemnify aggrieved participants in a real estate transactions. The law provides for recovery from the fund for any perso who suffers a loss due to embezzlement, conversion or unlawful obtaining of money or property by a licensed real estate broker. A $10 to $20 fee is requested at time of initial licensing and first renewal.
What net listings?
net listings are expressly forbidden in NJ. It is a listing in which the broker’s commission is equal to the difference between the sale price and an agreed upon net price specified by the seller.
What is price fixing?
Licensees must not conspire, suggest or recommend to any other licensee that any rate, commission or fee charged by them be fixed, maintained, established, or otherwise stabilized.
What is broker cooperation?
all brokers, whether residential, industrial or commercial, must fully cooperate with all other brokers through normal cooperation arrangements, which must promote the seller’s interest.
What is a waiver of broker cooperation form?
an owner who does not wish the listing broker to cooperate must state in writing by signing this form. It must be made available to other brokers upon request.
What are discriminatory commission splits?
licensees shall not discriminate in commission splits paid to other brokers and shall maintain a written file showing why such commission splits varied from the company norm.
