Real Estate Licensing

Question 1

Broker

Answer 1

one who buys and sells property for another for a fee

Question 2

Broker-salesperson

Answer 2

a qualified broker who practices real estate in the position of a salesperson in another broker’s office

Question 3

New Jersey Real Estate Commission

Answer 3

administrator of real estate licensees in New Jersey

Question 4

salesperson

Answer 4

a person who performs real estate activities while employed by or associated with a licensed real estate broker

Question 5

salesperson licensed with a real estate referral company (SLWRERC)

Answer 5

a person who is authorized to only make referrals and no other real estate activity.

not required to complete continuing education hours unless they wish to change to another NJ license type

Question 6

Real estate referral company

Answer 6

a real estate firm that only engages in listing rental units to find prospective tenants

Question 7

Referral fee

Answer 7

part of a commission or fee shared with a broker who sends a client or customer to an agent

Question 8

What are the four classes of real estate licenses?

Answer 8

broker, salesperson, broker-salesperson, and SLWRERC

Question 9

When does someone not need a real estate license to sell real estate?

Answer 9

1. owners handling their own property as unrepresented sellers
2. attorneys, executors, trustees, receivers, administrators, legal guardians (under order of a court)
3. banks and trust companies
4. insurance companies

Question 10

What is an unlicensed assistant?

Answer 10

an assistant to realtors who CANNOT perform any activity involving clients or customers

Question 11

What are license qualifications for salesperson or SLWRERC?

Answer 11

1. be 18 years or older
2. prove a high school education or its equivalent
3. furnish evidence of good moral character (no criminal record)
4. complete 75 hour prelicensing course
5. disclose SSN for child support enforcement
6. pass state examination
7. be sponsored by a licensed real estate broker

Question 12

What are the license qualifications to become a broker?

Answer 12

1. all the same as salesperson
2. have served three years full time as a licensed salesperson
   successfully complete 150 hours of study

Question 13

when are the experience requirements for a broker’s license waived?

Answer 13

1. honorably discharged war veteran with service-connected wound/disability
2. licensed broker from another state
3. previously licensed broker in NJ within last five years
4. taken equivalent courses in college
5. NJ attorneys
6. certain applicants who took prelicensing course in another state

Question 14

How long do you have after completing the prelicensing course to apply for a real estate license?

Answer 14

within one year of the date the candidate successfully completed the course

Question 15

Can nonresidents of NJ get a real estate license in NJ?

Answer 15

Yes, but they must qualify in the usual way and file irrevocable consent to service of process (consent to be sued in the state)

Question 16

Can corporations be granted a broker’s license?

Answer 16

Yes, so long as one of its officers holds a broker’s license. This person becomes the broker of record for the corporation and is personally responsible for real estate transactions.

Question 17

In what cases are temporary broker’s licenses issued?

Answer 17

if a broker dies or becomes mentally/physically ill and the office has no other broker, a temporary broker’s license may be issued to a sales person with at least three years of experience.

Question 18

When is license renewal for real estate licenses?

Answer 18

July 1 in odd numbered years (2023, 2025, 2027….)

Question 19

Continuing Education

Answer 19

all broker, broker-salesperson, and salesperson licensees must complete 12 hours of continuing education before license renewal

Question 20

Guaranty Fund

Answer 20

Money set aside to reimburse persons defrauded or badly served by real estate licensees

Question 21

Real Estate License Act, Title 45, Chapter 15

Answer 21

the law governing real estate practice in New Jersey

Question 22

REALTOR

Answer 22

a registered trademark reserved for the sole use of members of the National Association of REALTORS

Question 23

REALTOR-ASSOCIATE

Answer 23

salesperson associated with a REALTOR who joins the national and state associations of REALTORS

Question 24

Title 11, Chapter 5 Administrative Code

Answer 24

rules and regulations set up by the commission