New Jersey Exam Prep: Duties and Powers of the Real Estate

New Jersey Exam Prep: Duties and Powers of the Real Estate

Commission Flashcards The New Jersey Real Estate Commission (NJREC) was established in 1921 to administer and enforce real estate licensing law. The commission is made up of eight members. Five members must have been licensed as New Jersey real estate brokers for at least 10 years, two members are selected from the public, and one member must represent an appropriate government department.All members are appointed by the governor. Members serve three-year terms except the government representative.The governor determines the term length for the government representative.NJREC creates, maintains, and retains records related to management of real estate activities in the state.The commission retains the following records based on

New Jersey's Real Estate Licensing Act:

Statements of record and related additions or correctionsSubdivider annual reportsPublic offering statements (original and amended)Orders to Show Cause and any other pleadings related to violation of the Real Estate Full Disclosure Act as well as any other related records submitted to the commission and documentation of the final disposition, including cease and desist orders and penalties and/or sanctionsApplications for exemption from subdivision regulations as well as documentation of the request's disposition The Real Estate Guaranty Fund Act requires that the

commission retain these records:

The New Jersey Real Estate Commission includes four separate sections.The Investigations Section investigates license applicant qualifications as well as complaints against licensees or unlicensed individuals who perform activities that require a real estate license.The Real Estate Education Section reviews real estate school and instructor applicant qualifications and monitors the activities of schools and instructors.The Bureau of Subdivided Land Sales Control, which falls under the commission's authority, administers and enforces the provisions of the New Jersey Real Estate Sales Full Disclosure Act. The bureau reviews applications for the registration of new projects, inspections conditionally registered projects, and reviews project renewal applications.The Hearings and Regulatory Affairs Section processes the commission's rulemaking activity, schedules and processes contested cases, and prosecutes appropriate contested matters, among other activities.Written notice must be served personally on the licensee or sent through certified mail to the licensee's last known

address.Telephone notice must be confirmed in writing to the licensee's last known address as soon as possible after the telephone call; the party who places the call to the licensee must certify that the proper notice was made.Before entering an order for the temporary suspension,

Written notice must be served personally on the licensee or sent through certified mail to the licensee's last known address.Telephone notice must be confirmed in writing to the licensee's last known address as soon as possible after the telephone call; the party who places the call to the licensee must certify that the proper notice was made.The commission must provide at least 24 hours' written or telephone notice to the licensee that the suspension order will be issued and give the licensee a chance to appear before the commission to refute the charges.Criminal complaints, indictments, judgments of conviction and other separate documents that licensees submit with a license applicationCriminal history records obtained through a criminal history checkBankruptcy and other creditor records submitted for the purpose of determining license eligibilityCopies of orders to suspend or revoke licenses issued by professional or occupational licensing authorities and other documents submitted to determine if the applicant is eligible for licensingRecords concerning a licensee's medical disabilityPending investigative files or files related to an investigation in which the commission took no formal actionLicensee personal data, including home address, home phone number, and date of birthLicensee or applicant Social Security numbers The New Jersey Real Estate Commission may discipline licensees through fines or other sanctions for any violation of license law or administrative code, including the following specific actions that can result in fines or the

suspension or revocation of a license:

$250 to not more than $50,000 for violations of the Real Estate Licensing Act or for providing false statements or omitting material facts on a license application. In addition

to this general penalty range, N.J.R.S. § 45:15-16.79

specifies a penalty not to exceed $5,000 for a first violation or not to exceed $10,000 for a second violation.The commission may enforce collection of any penalty for licensees found guilty of a violation inform the licensee of the date on which the full hearing will be held. Such hearing may not be more than 30 days following the effective date of the temporary suspension.The licensee's license must Certifications of license history and status based on computerized licensing recordsLicense applications and related materials as well as documentation of the final disposition of the applications. Criminal history records and applicant date of birth are confidential and will not be released publicly.Real estate commission meeting minutesOrders to Show Cause and complaints the attorney general's office files regarding a licensee's or unlicensed person's administrative code or license act provision violation, any related documents submitted to the commission, and documentation of final disposition of the proceedingsNotices, proposals, and other records related to rulemaking that state law requires the commission to maintain The Bureau of Subdivided Land Sales Control maintains the following records as required by the Real Estate Full

Disclosure Act:

Making false promises or substantial misrepresentationsActing as an undisclosed dual

agentPursuing a flagrant and continued course of misrepresentation or making false promisesBehaving in a way that demonstrates unworthiness, incompetency, bad faith, or dishonestyFailing to cooperate in any way with a commission investigationFailing to provide clients with required executed copies of legal documents (sales and listing contracts), or failing to include a definite termination date in a listing agreementOffering a lottery, game, contest, prize, or drawing in which the recipient must sign a listing, sale, or other contract to receive the prize. (The broker must disclose in writing at the time the offer is made any compensation received for offering the promotion.)Being convicted of a crime that was unknown to the commission when issuing the most recent licenseReceiving a commission as a real estate broker while also representing either party to the transaction in a different capacity for considerationImplying membership in a real estate organization by using a logo, trade name, etc. when the licensee isn't a memberCompensating any unlicensed individual for real estate transaction-related activity (Brokers may rebate buyers a portion of the commission paid to the broker in any transaction as long as the rebate is noted in the original agency agreement with the buyer and the broker complies with all disclosure requirements.The broker must recommend that the buyer consult a tax professional about the potential tax consequences of the rebate.)Soliciting or receiving compensation for simply providing information about available rental housing.Committing any act of fraud or dishonest dealingAccepting compensation for a real estate transaction from anyone but the licensee's associated brokerFraudulently procuring

Based on N.J.R.S. §45:15-16.46, the commission may

impose fines ranging from