Chapter 1: Real estate licensing. Key Terms Flashcards Preview

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Flashcards in Chapter 1: Real estate licensing. Key Terms Deck (28):
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Administration Code

Title 11 Chapter 5
State rules and regulations for real estate licensees.

1

Real estate license act

Title 45, ch 15
Laws governing the practice of real estate in New Jersey

2

NJ Realestate Commission

A division of the department of banking and insurance.
Composed of 8 members.
5 Realestate brokers who have been licensed for at least 10yrs.
2 from the general public.
1 state representative. All members serve 3 yrs, except government representative who serves at the pleasure of the governor.

3

BROKER

Authorized to operate a Realestate business.
Every RE. Co. must have 1 person who is the authorized broker for the company also known as the "broker of record"
Individual licensed to charge the public for real estate services.

4

SALESPERSON

Needs a sponsor who is a broker of record
Will do business under the name of the co ie. Weichert realty co.
A person licensed to assist a broker and real estate transactions.

5

BROKER SALESPERSON

One who 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.

6

REFERRAL AGENT

Is allowed only to refer prospects for brokerage services to the supervising broker or the brokers designate.

7

Exemptions

Owners handling their own property can sell "for sale by owner".
Attorneys, banks, trust companies and insurance companies do not need a license to sell.

8

Payment for service

To collect a commission you must be licensed.
A broker may share commissions only with his or her associated sales person and referral agents or with another referring broker.
Finders fees money or gifts to unlicensed person who referred buyers or sellers is forbidden a broker however is allowed to pay other brokers.

9

Unlicensed assistants

Are prohibited from these activities:
Show property, answer any questions about the listed property, make cold calls by phone or in person, seeking business from potential listers, purchasers, tenants or landlords.
Discuss or explain a contract or any other state document.
Make telephone calls for rent collection, host open house or promotional boots, distribute promotional materials, or attend a home inspection.

10

Qualifications for a real estate license.

Be 18 years of age or older.
Successfully complete a 75 hour prelicensing course.
Pass the state exam.
Be sponsored by a licensed real estate broker to activate their license.

11

Qualifications for a brokers license.

Person must be 18 years or older, served three years full-time as a licensed salesperson: successfully completed 150 hours of study consisting of 90hrs of general broker prelicensing course, 30 hrs on brokers ethics and a 30 hrs of office management related topics.
Pass the state exam.

12

Change of status

A broker can change the status of a broker salesperson or sales person to that of a referral agent for a $50 fee.

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Time limit on application.

One year from the completion of the pre-license course.

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Non-residents

Someone that does not live in the state of New Jersey.
They can obtain a New Jersey real estate license after qualifying in the usual way and filing consent to be sued in the state.

15

Temporary license

If the broker of record becomes mentally ill or dies a sales person with three years experience may get a temporary license but the application must be filed within 30 days of the brokers death.
The person applying must complete the qualification for a brokers license within a year.

16

Continuing education requirements.

All licensed individuals must complete 12 hours of approved continuing education courses before each to your license renewal. This must be gone by April 30 of the renewal year.

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Continuing education

Must consist of 12 hours, at least two hours on ethics and at least four hours on other approved or topics.

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Continuing education not required for

Referral agents, any person who completed a brokers course within the preceding two years and a salesperson license within the preceding year.

19

License renewal

Is on July 1 of every odd-numbered year, requires completion of at least 12 hours of continuing education with two hours or more on ethics.

20

License termination of a broker.

A broker who goes out of business must close out the escrow account, remove signs, notify clients, and provide the commission with the name and address where past records will be available for six years.

21

Guarantee fund

Was established to reimburse members of the public who suffer a monetary loss due to wrong doing in a real estate transaction by a licensed broker or salesperson and or an unlicensed employee of a broker. The party must first obtain a court judgment naming the real estate commission as a party to the suit.

22

How is the guarantee fund - funded

At time of initial issuance of license each salesperson contributes $10 and each broker or broker salesperson contribute $20 to the fund which is maintained by the state treasurer and administered by the commission. maximum payment for a single claim is $20,000 per offense. Once the pond pays a claim against a broker or salesperson and, that person's license is revoked until the fund is reimbursed with interest.

23

Interstate property

Buyers have up to seven calendar days to cancel contract for the purchase or lease of such land.
Real estate licensees should be alert to the possible need for special registration and fees before working on the original deal.
Subsequent forms must be made available to prospective purchaser's in the same language as was used in the original advertisement.

24

Rental referral agencies

1. no rental property may be offered without the landlords consent oral consent must be confirmed in writing within 24 hours.

2. Units that are advertised must be checked every day for availability. Units that are listed must be checked every three days.

3. Referral agents that do referrals for a fee are required to have a real estate license before they could enter into a written contract.

25

Real estate sales full disclosure act

Regulations covering out-of-state properties sold in New Jersey

26

Realtor associate

A sales person who joins a particular real estate trade group

27

REALTOR

Member of a private real estate trade organization