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Flashcards in Chapter Three - NJ Licensing Laws Deck (24)
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1

Title 45 Chapter 15

The New Jersey Real Estate Licensing Act:
- Designed to license and regulate brokers and , salespersons and to establish a Real Estate Commission.

2

NJAC 11:5

Rules & Regulations of the NJ Real Estate Commission

3

The Real Estate Commission

- Operates as a division of the Department of Banking & Insurance.
- Statutory authority to supplement the license law with rules and regulations.
- Does NOT create laws.

4

Branch Office

- A branch office license is required for each office.
- The branch office must be under the supervision of a licensed broker-salesperson.
- A duplicate license is required showing the name of the broker and the address of the branch office.

5

When terminating a license the broker must:

- Advise salesperson in writing.
- Return license to the Commission within 5 days.
- Include a copy of the letter with the license sent to the Commission.

6

Activities Requiring Licensure

Whenever a person is acting on behalf of a 3rd party.
- Collecting rent and managing income producing properties.
- Negotiating a loan to be secured by a mortgage.

7

A broker candidate must:

Be a legal resident of the US but need not be a citizen.

8

Temporary Broker's License Requirements

- 3 years full time experience
- Application must be made within 30 days of broker's death
- Valid for one year.

9

License Records Maintenance

6 years

10

Guarantee Fund

- Provides for recovery from the fund for any person who suffers a loss from participants in real estate transactions.
- $20,000 limitation on recovery for any one claim.

11

Rebates

- Can only be provided by a broker.
- Must be in the form of a credit to the purchaser and reducing the amount of the commission payable to the broker or check made at the time of closing.

12

Ads placed by a licensee must:

- Broker's business name.
- Contain words such as broker, realtor, etc...
- Address of person placing ads.
- Free or discounted products and services are permitted.
- CMAs are permitted.
- Must include the municipality withing which the property is located.
- Always contain the name of the broker.

13

Promptly

Defined a 5 business days.

14

Attorney General's Memorandum on the Law Against Discrimination

- Must be given to the owner when a listing is taken.
- Must refuse listing if owner indicates that he will not comply with the law.

15

Permanent Transaction Records

- Transaction documents must be held for 6 years.
- Incomplete transaction records must be held for 6 months.

16

Licensee Fines

- First violation - not more than $5,000.
- Second violation - not more than $10,000.

17

Real Estate Full Disclosure Act

- Regulates the sale of out-of-state properties.
- The Bureau of Subdivided Land Sales Control administers the Act within the NJ Real Estate Commission.
- $250 - $50,000 fines

18

OR/EE Rule

OR - gives things (seller)
EE - receives things (buyer)

19

Mortgagor
Mortgagee

Borrower - gives pledge
Lender - receives pledge

20

Title

= Ownership

21

Mortgage

A pledge of real estate as collateral for a loan.

22

Note

A promise to repay; evidence of a loan

23

Status

- After a contract emerges from attorney review, and prior to closing, any ad of the property must include the words "under contract".
- Broker may not indicate "sold" until after closing has taken place and title transferred.

24

Attorney Review

3 days