Chapter 1 - Real Estate Licensing Flashcards Preview

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Flashcards in Chapter 1 - Real Estate Licensing Deck (16):
0

Who must be licensed?

Anyone who takes part in a real estate transaction in New Jersey for another person for a fee, commission,or other valuable consideration.

1

Licenses are governed by?

- The Real Estate License Act, known as Title 11. Chapter 5, Administrative Code.

2

Broker

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

3

Broker-salesperson

Has fulfilled all the requirements of a broker yet chooses to work in a sales capacity for and in the name of another broker.

4

Bureau of Subdivided Land Sales Control

Approvals and registrations for certain new out-of state properties being offered to New Jersey residents. It includes substantially the same requirements as the Interstate Land Sales Disclosure Act, which regulates subdivided land on the federal level. Buyers have up to seven calendar days to cancel contracts to purchase or lease such lands.

5

Continuing education

All broker, broker-salesperson, and salesperson licensees must complete 12 hours of approved continuing education courses before each two-year license renewal. The required courses, including at least two hours of ethics, should be completed on or before April 30 of the renewal year. $200 fee if completion between May 1 and June 30.

6

Guaranty Fund

Established to reimburse members of the public who suffer a monetary loss due to wrongdoing in a real estate transaction by a licensed broker or salesperson or an unlicensed employee of a broker. The party must obtain a court judgement, naming the Real Estate Commission in suit. At time of issuance of license, each salesperson contributes $10 and broker or broker salesperson contributes $ 20.

7

New Jersey Real Estate Commission

A division of the department of Banking and Insurance, is composed of eight members appointed by the government. five are real estate brokers or have been licensed for at least 10 years, two are chosen from the general public and one represents a department of the government. All members serve a three-year term except the government member, who serves at the pleasure of the governor. The governor can remove any member for cause.

8

Real Estate License Act

Law governing real estate practice in New Jersey. Under the Real Estate License Act there are 4 types of licensees: Broker, salesperson, broker-salesperson and referral agent.

9

Real Estate Sales Full Disclosure Act

Regulation covering sales of out-of-state property in New Jersey. Intended to protect the public from unscrupulous developers or marketers or from undue pressure.

10

REALTOR

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

11

REALTOR-ASSOCIATE

Salesperson associated with a REALTOR who joins the national and state association of REALTORS.

12

Referral Agent

A licensee with authority only to refer prospective buyers and sellers to the broker.

13

Referral fee

Part of the commission or fee shared with a broker who sends a client or customer to an agent.

14

Salesperson

Works under the sponsoring licensed broker, doing business in the name of the broker. The supervising broker is required to furnish guidance and direction and is personally responsible for the real estate acts of salespersons under their supervision.

15

Title 11, Chapter 45

Real Estate License Act which governs licenses.