Unit 1: Real Estate Licensing

Question 1

Broker

Answer 1

A broker is authorized to operate a real estate business, to hire salespersons, and to charge the public for services. Every real estate company must have one person who is the authorized broker for the entire company; this person is often referred to as the broker of record.

Question 2

Salesperson

Answer 2

A salesperson works under a sponsoring licensed broker, doing business in the name of the broker and receiving compensation only from that broker. The supervising broker is required to furnish “guidance and direction” and is personally responsible for the real estate acts of salespersons under his or her supervision.

Question 3

Broker-Salesperson

Answer 3

A broker-salesperson has fulfilled all of the requirements of a broker yet chooses to work in a sales capacity for and in the name of another broker.

Question 4

Salesperson Licenced with a Real Estate Referral Company (SLWRERC)

Answer 4

A salesperson licensed with a real estate referral company (SLWRERC) is a licensee whose activities are restricted to only making referrals and not any other real estate activity. An SLWRERC must be licensed with a real estate referral company, not a real estate firm.

Question 5

Continuing Education

Answer 5

classes required for license renewal

Question 6

Guaranty Fund

Answer 6

reimburses people defrauded or badly served by licensees in real estate transactions

Question 7

NJ Real Estate Commission

Answer 7

administrator of real estate licenses

Question 8

Real Estate Licensce Act

Answer 8

law governing the practice of real estate in New Jersey

Question 9

Realtor

Answer 9

member of a private real estate trade organization

Question 10

Realtor-Associate

Answer 10

salesperson who joins a particular real estate trade group

Question 11

Referral Fee

Answer 11

money paid another broker for sending a client or customer

Question 12

Title 11 Chapter 5

Answer 12

state rules and regulations for real estate licensees