Mod 1 - New Jersey Laws, Rules and Regulations

Question 1

Who closely regulates the real estate industry in NJ

Answer 1

The New Jersey Real Estate Commission

Question 2

What legislature enacted the laws that govern the real estate business in New Jersey

Answer 2

N.J.S.A 45:15

Question 3

who do the laws that govern the real estate business, enacted by legislature N.J.S.A 45:15 protect?

Answer 3

the general public

Question 4

What is not the intention of the laws that govern the real estate business, enacted by legislature N.J.S.A 45:15 protect?

Answer 4

The laws are for the protection of the general public. They are NOT intended to limit the number of people engaged in the business or to protect the licensees

Question 5

T or R: the NJ Real Estate Commission creates and enforces laws that govern the real estate business in NJ

Answer 5

F

The NJ Real Estate Commission does NOT make the laws. They only enforce and regulate laws

Question 6

An essential element of an enforceable contract. Something of value that induces the person to enter into the contract, such as money.

Answer 6

Valuable Consideration

Question 7

An essential element of an enforceable contract. Something of value that induces the person to enter the contract such as love and affection

Answer 7

good consideration

Question 8

Monetary wise, what must be present in order for a person to need a license

Answer 8

Valuable consideration.

When actions are performed for a fee, commission or other valuable consideration, a license is needed

Question 9

A license is needed for any transaction involving real property if (2 things)

Answer 9

1. the transaction is for somebody else AND

2. valuable consideration or commission has been promised

Question 10

any person, corporation or other entity who directly or indirectly sells, exchanges, buys, rents or auctions real property or any interest therein on behalf of another for consideration

Answer 10

broker

Question 11

A broker may be represented by a licensed _

Answer 11

salesperson

Question 12

The licensed and real estate broker that employs a salesperson or broker-salesperson. May be person or business entity

Answer 12

employing broker

Question 13

When the employing broker is a business entity, such as a corporation, there must be a qualified broker designated to serve as the __ _ __

Answer 13

broker of record

Question 14

who is held responsible for the operation of the office and the conduct of all licensee?

Answer 14

employing broker, and if it is a corporation, broker of record

Question 15

T or F: An unlicensed secretary can write and place ads as directed by the licensee

Answer 15

F: An unlicensed secretary can write ads for approval of a licensee then place approved ads as directed

Question 16

T or F: You cannot have a real estate company without at least one licensed broker and one licensed salesperson

Answer 16

F: a salesperson must work under a broker’s supervision, but a broker may work on their own, so a broker’s license MUST be involved and a salesperson license may or may not be involved

Question 17

one licensed as a broker but acting in the capacity of a salesperson under the employ of another broker. can be a manager at the branch office.

Answer 17

broker salesperson

Question 18

a person licensed and employed by and operating under the supervision of a licensed real estate broker whose real estate brokerage-related activities are limited to referring prospects for sale, purchase, exchange, leasing or rental of real estate or an interest therein

Answer 18

referral agent

Question 19

Who pays a salesperson, broker-salesperson, or referral agent?

Answer 19

They may receive a commission, bonuses or any earned ONLY from the employing broker. Every payment must pass through the employing broker, except when a licensee is owed a commission from a former employing broker

Question 20

T or F: To increase their chances of success and amount of commission an agent may work for multiple brokers at any given time

Answer 20

F: agents may work for ONLY ONE broker at a given time; except in cases of different states

Question 21

T or F: A broker and a salesperson can sue anyone for commission

Answer 21

F: the law prohibits anyone from suing for a commission unless they are licensed as a real estate broker. a salesperson may not sue anyone other than their employing broker

Question 22

T or F: an attorney who has been admitted to the NJ Bar is can regularly engage in real estate business without a real estate license

Answer 22

F: An attorney admitted to the NJ bar is exempt from getting a license and can engage in real estate business BUT ONLY if it is part of their normal activity/duty

Question 23

a person designated in a will to carry out the provisions of that will

Answer 23

executor

Question 24

a person appointed by the court to carry out the terms of a will or to manage the affairs of a person who has died intestate

Answer 24

administrator

Question 25

a person appointed by the court to preserve and control property pending final determination of the court

Answer 25

receiver

Question 26

a person who holds the property of another in trust

Answer 26

trustee

Question 27

What is the difference between the licensing prerequisites of a salesperson and a broker

Answer 27

Salesperson - no experience, 75 hours of classes

Broker - 3 years of full time experience, 150 additional hours of classes

Question 28

T or F: no license shall be issued to any person who has been within the 10 years prior to application for licensure convicted of forgery, burglary, robbery, any theft offense, criminal conspiracy to defraud, or other like offense

Answer 28

F - within 5 year and any theft offense other than shoplifting

Question 29

T or F: a social security number is needed to get a salesperson license

Answer 29

t

Question 30

T or F: no license shall be issued to any person who is 6 years or more in areas on their child support obligations or the subject of an outstanding child support related warrant

Answer 30

f: no license shall be issued to any person who is 6 MONTHS or more in areas on their child support obligations or the subject of an outstanding child support related warrant

Question 31

What are some reasons why you will not get a salesperson license (9)

Answer 31

1. under 18, 2. no high school diploma or GED, 3. did not complete your 75 hr course, 4. failed state exam, 5. have no licensed broker to sponsor you, 6. not a citizen or legal alien or no social security number, 7. lack good moral character, 8. have been convicted of money related crimes, not including shoplifting, in the past 5 years, 9. 6 months or more in arrears on child support or subject of an outstanding child support related warrant

Question 32

What are the conditions for the experience requirement to get a broker’s license

Answer 32

3 years of experience working at least 40 hours between 10 AM and 8 PM on ANY 5 of the 7 days in a week, with any other part time job not exceeding 25 hrs/wk

Question 33

T or F: A person who was strictly a referral agent but does this for 3 years meets the minimum requirement to get a broker’s license

Answer 33

F: in no event will an applicant whose brokerage activity was limited solely to making referrals to other licensees be deemed to have fulfilled the full time experience requirement

Question 34

in what instances can The prelicense education requirement for a salesperson (75 hrs)/broker (90 hrs) be waived? (4)

Answer 34

1. coming from another state with a license and 3 years of work, 2. attorney, 3. if broker license is only expired for 2 but not more than 5 years, 4. earned a real estate related college degree

Question 35

in what instances can the three years experience requirement for a broker license be waived

Answer 35

1. for a honorably discharged veteran injured in the line of duty who takes 225 hrs course, 2. coming from another state with a license and 3 years of work after taking class

Question 36

What two licensing requirements can be waived and for who?

Answer 36

A. the prelicensing course requirements can be waived for 1. coming from another state with a license and 3 years of work, 2. attorney, 3. if broker license is only expired for 2 but not more than 5 years, 4. earned a real estate related college degree
B. The three years experience for brokers license for 1. for a honorably discharged veteran injured in the line of duty who takes 225 hrs course, 2. coming from another state with a license and 3 years of work after taking class

Question 37

T or F: honorably discharged veterans that were injured in the line of duty and complete 225 hr course requirement can become a broker without a 3 year requirement after passing the state exam and paying all required fees

Answer 37

f - they put pass a state examination but they are not required to pay license fees

Question 38

An agreement fled with the real estate commission by an out of state broker which states that any legal action brought against him may be accomplished by service on the commission

Answer 38

irrevocable consent

Question 39

T or F: an NJ residency is required to get an NJ real estate license

Answer 39

F. non residents can get a licensee and enjoy all the privileges of resident licensees, but they must sign an irrevocable consent (agree to be sued)