Vocabulary Chapter 3 NJ License Laws

Question 1

Apprenticeship

Answer 1

Formerly the term used to describe the requirement that broker applicants must have been continuously licensed as salespersons for at least 3 years immediately preceding application. Today referred to as experience requirement

Question 2

Associate Broker

Answer 2

a real estate professional who works under a broker or corporation as a salesperson.

Question 3

Attorney General’s Memorandum

Answer 3

A summary of the NJ Law Against Discrimination. Commission rules require every licensed salesperson or broker to give a copy of the memorandum when listing property

Question 4

Attorney review (Clause)

Answer 4

in NJ a clause that must appear in all purchase and sale agreements and all leases prepared by real estate licensees. allowing buyers and sellers a period of 3 days to consult an attorney who can review and cancel the contract or lease

Question 5

Back up offer

Answer 5

an offer presented after expiration of the attorney review. period

Question 6

Branch office

Answer 6

an office other than the main office from which real estate business is conducted

Question 7

Broker

Answer 7

a licensed person who negotiates the purchase and sale of real estate for another

Question 8

Broker Salesperson

Answer 8

a broker who operates under the supervision of a licensed real estate broker

Question 9

Bureau of Subdivided land sales control

Answer 9

a bureau within NJ real estate commission that administers the real estate sales full disclosure act. The Act is intended to discourage fraud and misrepresentation in th sale and properties located in other states

Question 10

Commingling

Answer 10

mixing money belonging to clients with personal funds

Question 11

Dual Capacity

Answer 11

collecting a commission as a real estate broker in a transaction wehn at the same time representing either party in a different transaction for a consideration i.e lawyer,excutor

Question 12

Dual Agent

Answer 12

an agent who represents both buyer and seller in the same transaction

Question 13

Dual Contract

Answer 13

a contract drawn for an illegal purpose. For ex: where a buyer and seller enter into a second contract with different terms than those on the original contract to benefit fraudulently from the arrangement

Question 14

Escrow Account

Answer 14

an account in which a broker or attorney holds clients earnest money deposits or other funds: also called an escrow account

Question 15

FIDUCIARY

Answer 15

a person in a position of great trust and confidence, as the relationship between principal and agent

Question 16

Guaranty Fund

Answer 16

a fund established from licensing fees for paying claims of persons who have been injured by the illegal acts of licensees

Question 17

Irrevocable consent

Answer 17

a binding agreement that cannot be changed or canceled without the agreement of all parties.

Question 18

Pocket Card

Answer 18

is a photo ID card that real estate licensees are required to carry and show on demand

Question 19

Prospectus

Answer 19

a printed statement distributed to describe and to advertise a new business venture, a real estate project or stock issue

Question 20

Real Estate Commission

Answer 20

the state regulatory agency that governs the licensure process and has the power to approve all real estate licenses. The Commission also is empowered to deny, fine, revoke or suspend a salesperson or broker license if the license violates any license law or regulation

Question 21

Real Estate Sales Full Disclosure Act

Answer 21

a NJ law that regulates the sale across state lines of subdivided land under certain conditions

Question 22

Realtor

Answer 22

the National Assoc. of Realtors Only brokers who are member of local real estate boards are entitled to use the trademark name “Realtor”

Question 23

Realtor Associate

Answer 23

a salesperson who works for a Realtor/Broker and belongs to the local Board of Realtors