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New Jersey Real estate License Law, Chapter 3 review Quiz
Principles and Practices of NJ Real Estate
Terms in this set (50)
When money is deposited in a client trust account:
deposit money must be promptly returned to the buyer is the offer is not accepted
The following would not be a cause for disciplinary action under Title 45, Chapter 5
Making promises of a nature likely to persuade or induce a prospective buyer.(as long as the licensee does not misrepresent or defraud, he is free to exercise his talents of persuasion)
If the broker terminates employment of a salesperson he must:
immediately return the salesperson's license to REC
When there is a first violation of the licensee act the REC is empowered to:
impose monetary fees, revoke the license and or suspend the license
A broker's records must be made available
to members of the Commission without notice
Fiduciary relationship refers to
the position of trust between broker and his principal
a broker incorporates his business and subsequently dies, and another person becomes the broker for the corporation
contracts with principals do not terminate upon death of the broker under these circumstances. The contracts stay in force.
A newly licensed broker may not maintain an office in
the home of a salesperson in his employ
when a licensee is guilty of violating the NJ Real Estate License Act or the Rules and Regs of The NJ REC, the REC may, for the first violation
impose a fee of not more than $5000.00
A real estate broker typically can
prepare a purchase and sale agreement. The other practices are restricted to attorneys.
Unless otherwise agreed to in writing, the employing broker must pay all commissions due to a salesperson within how many days after receipt by the broker?
After completion of the real estate license prep course, what period of time does the applicant have in which to pass the state exam and request issuance of his license?
One year. This came about as a result of the REC rules
Regarding a dispute between licensees concerning the division of commissions:
The REC may demand accounting, but will not settle contractual disputes between licensees.
Real Estate licensee are renewed:
biennially on July 1st, in odd numbered years. Meaning all real estate licenses expire at midnight June 30, once every 2 years.
Pertaining to the salesperson's license:
It must be prominately displayed in the brokers main office.
A salesperson may accept commission from whom?
The employing broker
The following statement is true to the branch office hours
The branch office hours must be open to the public during normal business hours.
Broker's real estate ads in NJ must include:
the name of the brokerage firm
When a real estate broker advertises in the local newspaper he must:
specify the municipality within which the property is located.
Should the employing broker die, a temp broker license may be issued to a sales-person provided:
that the request be made in writing within 30 days of the broker's death and that the applicant has 3 years prior experience.
The following requires licensees to proved owners with a copy of the Attorney Generals Memorandum on the Law Against Discrimination.
The Rules and Regs of the NJ REC
The REC may suspend or revoke a license for:
using the insignia of membership in a real estate organization of which licensee is not a member
In advertising a listed property for sale, a broker may NOT legally
run an ad giving the impression that he is the owner of the property
The Realtor Code of Ethics
a code obligatory upon members of the National Association of Realtors
Who is required to comply with the State licensing law
An individual employed to handle the sale of units in a condo building,One who auctions real estate and one who for compensation effects "exchange" of real estate
A principal broker for a cooperation must be
responsible for every licensee and clothed with full authority even if the owner has no interest
A salesperson who has completed a sale would ordinarily receive his commission for
A real estate deal is made between seller and buyer, without the services of a broker. They arrange with a licensed broker, for a fee, to prepare certain instruments he may prepare, an agreement of sale?deed?purchase money mortgage?
None of the above
If a licensee is convicted of forgery, the REC will NOT grant a license within
To be licensed as a NJ Real Estate Broker you must be
of legal age
A broker may properly advertise
free market study
With regard to the maintenance of trust accounts the following is NOT true
The depository institution may be located in another state if it is an approved depository in the other state.
A real estate licensee brings a prospective buyer to see a property and the property owner requests ID from the licensee indicating her license status. The proper ID for the licensee to produce is a:
Monies may be paid out of the Guaranty Fund in the event:
a seller suffers a monetary loss due to the embezzlement of money by a licensed broker, a licensed real estate salesperson or an unlicensed employee of a real estate broker.
The responsibilities of the Real Estate Commission include
The legislature sets the license fees and promulgates laws. The testing service sets the exam fees
A real estate salesperson may lawfully accept a bonus for the completion of a difficult sale
only from his or her employing broker.
The broker owes and obligation to
present his principal all written offers he receives, including all of the terms and conditions of each offer signed by a prospective buyer
You are the seller's broker negotiating a difficult sales contract between an experienced seller of real estate and a novice purchaser
you recommend that purchaser employ an attorney
A real estate broker hires a secretary who does not have a license and agrees to pay her a fixed salary. Which of the following duties may be performed by her?
Typing contracts for the salesperson in the broker's office.
A salesperson may be advertise a property for sale only
if the name of the broker is included in the ad.
A broker must keep permanent records of how he handled other persons funds for
a broker must transmit to his principal
all written offers
Residential rental referral agencies must include what in their contract with a prospective tenant
The date and duration of the contract,refund policy, a statement that the business is licensed by the NJ REC
With regard to the Real Estate Sales Full Disclosure Act
the rescission period is 7 days
A salesperson has listed a house for sale and has knowledge of a latent defect in the building, his responsibility is to
disclose it to the buyer
A NJ broker named I.M. First listed the house at 326 Cove Dr in Mantoloking. She may refuse to cooperate with another licensee if
the owner of the home signs a statement directing her not to cooperate
The maximum fine for violations of the R.E. sales full disclosure act is
$50,000 per violation
When a broker prepares a document pertaining to a real estate transaction
he must give a copy to all parties signing it at the time the signature is obtained, in other words immediately
Funds received for deposit in the Guaranty Fund
are used to indemnify aggrieved participants in real estate transactions.
Every broker must maintain records of all funds and property of others for not less than 6 years except in 2 cases where records have to be kept for only 6 months, what are the exceptions?
Unaccepted offers and expired listings that did not sell.
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