Real Estate Licensing Flashcards
Unit 1, Page 1
Real Estate Sales Full Disclosure Act provisions
-Applies to sale of property located outside of the state of NJ
-Registration required with Bureau of Subdivided Land Sales Control
-Owner must have a New Jersey Licensed Broker as an authorized representative of the out of state subdivider/owner
-Potential buyers must be given a Public Offering Statement including all relevant details about the property
-7 calendar day cooling off period (rescission period)
Real Estate Sales Full Disclosure Act Exemptions
-Subdivisions fewer than 100 lots, parcels, units or interests
-Sales per a court order
-Sales wholly for industrial or commercial purposes
-Sales by a government agency
-Cemetery lots of interests
-By an owner for his own account in a sine or isolated transaction
-Communities consisting wholly of rental units.
Classes of real estate licenses
-Broker license
-Salesperson license
-Broker-salesperson license
-Salesperson license with a real estate referral company (referral agent)
Person in charge of all the broker licensees at a brokerage
Authorized broker or broker of record
What does a broker-salesperson license do?
This person has a brokers license, but they choose to hang their salesperson license under another brokerage
What does a referral agent do?
They refer leads do their brokerage in exchange for a payment. They do not do showings or any of the duties of a salesperson.
What activities require a broker’s license?
-List real estate for sale
-Sell, exchange, buy, auction or rent real estate
-Collect rent
-Solicit prospective purchasers or sellers
-Negotiate a real estate loan
-Sell lots or other parcels for a developer
-Sell business opportunities that include an interest in real estate
-ATTEMPTS to do any of the previous
What can a salesperson’s license allow under the supervision of a broker?
-Listing real estate in the name of the brokerage
-Negotiating the purchase, sale or exchange of real estate
-Negotiating real estate loans
-Leasing, renting and collecting rent
-Selling lots or other parcels for a developer
Exemptions to license requirements.
-Owners handing their own property (for sale by owner - FSBO)
-Attorneys, executors, trustees, receivers, administrators, legal guardians and others handing real estate under the order of a court
-banks and trust companies
-insurance companies
Cooperative listing
Referral from one brokerage to another
What are the dates for Continuing Education and license renewals?
-Continuing Education is April 30 of the odd numbered years (ie 2025)
-Renewal is June 30 of the odd numbered years
How long must a broker keep records of resignations/terminations of salespersons?
6 years
Guaranty Fund
Reimburses members of the public who suffers a monetary loss due to wrongdoings by a licensed broker or sales person or an unlicensed employee of a broker. Up to $20,000 per offense.
Law governing the practice of real estate in NJ
Real Estate License Act
Real Estate License Act
Law governing the practice of real estate in NJ
