Flashcards in Chapter Three - NJ Licensing Laws Deck (24)
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.
Rules & Regulations of the NJ Real Estate Commission
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.
- 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.
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.
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.
A broker candidate must:
Be a legal resident of the US but need not be a citizen.
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.
License Records Maintenance
- 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.
- 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.
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.
Defined a 5 business days.
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.
Permanent Transaction Records
- Transaction documents must be held for 6 years.
- Incomplete transaction records must be held for 6 months.
- First violation - not more than $5,000.
- Second violation - not more than $10,000.
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
OR - gives things (seller)
EE - receives things (buyer)
Borrower - gives pledge
Lender - receives pledge
A pledge of real estate as collateral for a loan.
A promise to repay; evidence of a loan
- 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.