Flashcards in Mod 1 - New Jersey Laws, Rules and Regulations Deck (39)
Who closely regulates the real estate industry in NJ
The New Jersey Real Estate Commission
What legislature enacted the laws that govern the real estate business in New Jersey
who do the laws that govern the real estate business, enacted by legislature N.J.S.A 45:15 protect?
the general public
What is not the intention of the laws that govern the real estate business, enacted by legislature N.J.S.A 45:15 protect?
The laws are for the protection of the general public. They are NOT intended to limit the number of people engaged in the business or to protect the licensees
T or R: the NJ Real Estate Commission creates and enforces laws that govern the real estate business in NJ
The NJ Real Estate Commission does NOT make the laws. They only enforce and regulate laws
An essential element of an enforceable contract. Something of value that induces the person to enter into the contract, such as money.
An essential element of an enforceable contract. Something of value that induces the person to enter the contract such as love and affection
Monetary wise, what must be present in order for a person to need a license
When actions are performed for a fee, commission or other valuable consideration, a license is needed
A license is needed for any transaction involving real property if (2 things)
1. the transaction is for somebody else AND
2. valuable consideration or commission has been promised
any person, corporation or other entity who directly or indirectly sells, exchanges, buys, rents or auctions real property or any interest therein on behalf of another for consideration
A broker may be represented by a licensed _
The licensed and real estate broker that employs a salesperson or broker-salesperson. May be person or business entity
When the employing broker is a business entity, such as a corporation, there must be a qualified broker designated to serve as the __ _ __
broker of record
who is held responsible for the operation of the office and the conduct of all licensee?
employing broker, and if it is a corporation, broker of record
T or F: An unlicensed secretary can write and place ads as directed by the licensee
F: An unlicensed secretary can write ads for approval of a licensee then place approved ads as directed
T or F: You cannot have a real estate company without at least one licensed broker and one licensed salesperson
F: a salesperson must work under a broker's supervision, but a broker may work on their own, so a broker's license MUST be involved and a salesperson license may or may not be involved
one licensed as a broker but acting in the capacity of a salesperson under the employ of another broker. can be a manager at the branch office.
a person licensed and employed by and operating under the supervision of a licensed real estate broker whose real estate brokerage-related activities are limited to referring prospects for sale, purchase, exchange, leasing or rental of real estate or an interest therein
Who pays a salesperson, broker-salesperson, or referral agent?
They may receive a commission, bonuses or any earned ONLY from the employing broker. Every payment must pass through the employing broker, except when a licensee is owed a commission from a former employing broker
T or F: To increase their chances of success and amount of commission an agent may work for multiple brokers at any given time
F: agents may work for ONLY ONE broker at a given time; except in cases of different states
T or F: A broker and a salesperson can sue anyone for commission
F: the law prohibits anyone from suing for a commission unless they are licensed as a real estate broker. a salesperson may not sue anyone other than their employing broker
T or F: an attorney who has been admitted to the NJ Bar is can regularly engage in real estate business without a real estate license
F: An attorney admitted to the NJ bar is exempt from getting a license and can engage in real estate business BUT ONLY if it is part of their normal activity/duty
a person designated in a will to carry out the provisions of that will
a person appointed by the court to carry out the terms of a will or to manage the affairs of a person who has died intestate
a person appointed by the court to preserve and control property pending final determination of the court
a person who holds the property of another in trust
What is the difference between the licensing prerequisites of a salesperson and a broker
Salesperson - no experience, 75 hours of classes
Broker - 3 years of full time experience, 150 additional hours of classes
T or F: no license shall be issued to any person who has been within the 10 years prior to application for licensure convicted of forgery, burglary, robbery, any theft offense, criminal conspiracy to defraud, or other like offense
F - within 5 year and any theft offense other than shoplifting
T or F: a social security number is needed to get a salesperson license