Commission Rules and Regulations Flashcards
Branch office
a secondary place of business apart from the principal or main office from which real estate business is conducted
commingling
mixing/pooling of funds
client funds must be kept separate from brokerage funds
duplicate original
an exact copy of a signed original
escrow account
an account used for the deposit of all money belonging to other people
guilty knowledge
awareness of wrongdoing without any attempt to stop it
letter of intent
a nonbinding (usually) recitation of what the parties intend to do, preceding entering into a contract
probation
the least severe discipline available to the Real Estate Commission
revocation
an act of taking away someones real estate license
most severe punishment for NJ REC
suspension
the temporary lifting of a real estate license by the commission
trust account
a separate account segregated from a broker’s funds, into which the broker deposits all funds entrusted to the agent by the principal (client).
Waiver of Broker Cooperation
Seller’s statement that only one office will be marketing the property
no MLS marketing
A salesperson may NOT
- accept any form of compensation except from his or her supervising broker
- maintain an escrow account or hold funds belonging to others
- work for more than one NJ broker at a time
Every broker who is a resident of New Jersey must maintain________
a place of business in the state
license lending
a practice in which a broker permits his or her license to be used by another person or business entity without actually supervising the business
When a client places advance fees of more than $25 with a broker, the broker must give the client an account of how the money is being spent within ______
90 days
Clients that make cash deposit must be given ______
a written receipt
Any cash deposit of $10,000 or more must be reported to the
Internal Revenue Service
Every broker must keep records of trust account activity for at least ______
six years
What statement needs to be included in all listing contracts
“As seller you have the right to individually reach an agreement on any fee, commission, or other valuable consideration with any broker. No fee, commission, or other consideration has been fixed by any governmental authority or by any trade association or multiple listing service”
Attorney Review Clause
gives the buyer and seller the right to consult an attorney, who may disapprove a contract within three business days of delivery of signed contracts to both parties
required in all sales contracts prepared by licensees
All written offers must be forwarded to sellers within ______
24 hours
brokers must keep copies of all unaccepted offers to purchase for______
six months from the date of the initial offer
Buyer’s brokers
brokers that are retained by buyers to help them find suitable properties
Broker as disclosed dual agent
NJ REC allows a broker to represent both parties in a transaction, provided that the broker obtained parties written, informed consent to the dual agency
Broker as transaction broker
works with a buyer and/or seller in the sales transaction without representing either.
does not promote interests of one party over another
what is included in a written Broker-Salesperson Independent Contractor agreement
- compensation rate paid to the salesperson
- a broker promise to turn over monies due the salesperson within ten days after a commission is received
- rate of compensation to be paid the salesperson for transactions that close after the salesperson leaves that broker’s firm
- provision that any future changes to the contract will be binding only if in writing and signed by both parties
All ads must indicate ______
the name of the brokerage company followed by a term such as REALTOR, Realist, real estate broker, or real estate agency
In advertisements, the licensee’s name must appear ______
exactly as it is on the license with the exception of middle name/initial
nickname may also be included
all ads must specify the property’s ________
municipal location
any advertisement that refers to a home warranty must state whether _______
inspection is required, if the warranty is mandatory, and whether the purchaser is responsible for the payment of fees in connection with the warranty
No advertising may indicate that a property is “sold” until _______
the sale has closed and the title has been transferred
commission rebates
money that a broker pays a purchaser/buyer after a sale has closed
price-fixing
illegal practice of competing offices agreeing to establish a set commissions rate
What are the three actions the REC can take against licensees who have received complaints?
- place a license on PROBATION
- suspend a license (SUSPENSION)
- revoke the license completely (REVOCATION)
Fines for violation of REC regulations
first offense = $250 - $5000
second offense = up to $10000
third offense = revocation
highest fine is $25000 total!!!!
before suspending/revoking a license, the commission must provide the licensee at least _______ advance notice of a hearing
10 days
license lending
practice of brokers allowing their licenses to be used by another person without supervising
