New Jersey Real Estate Exam - Commission Rules Regulations

New Jersey Real Estate Exam - Commission Rules & Regulations Flashcards Termination Agreementstates the rate of compensation to be paid the salesperson for transactions that close after the salesperson leaves that broker's firm The Commission can alsosuspend a licensefor anyonewaiting trial for a number of serious crimes, including murder, kidnapping, robbery, criminal conspiracy, and so on.CAN-SPAM FinesDamages of up to $250 per violation (or treble damages for willful violations), with a maximum award of million are possible.NJREC Advance Notice of Hearing to Licensees 10 Days' Notice The Commission can promptlyrevoke the licenseof anyone convicted of certain crimes, among them forgery, burglary, robbery, and theft, and for an indefinite period of time.Material Information (Physical Condition) Reasonable effort must be taken to ascertain and disclose all material defects of properties accepted for listing by the seller and licensee..Cash Deposits of $10,000+In accordance with federal law, any cash deposit of $10,000 or more must be reported to the Internal Revenue Service Any ad offering a rebate to the purchaser of residential property must disclose the buyer's obligation to pay any applicable taxes and advise the purchaser to consult a tax professional.Waiver of Broker CooperationTo give sellers the best service possible, the Commission expects brokers to cooperate with other firms that may want to show listed property. Any time a seller directs a broker not to cooperate, the licensee must have the seller sign aWaiver of Broker Cooperationform, which

states:WAIVER OF BROKER COOPERATIONI

UNDERSTAND THAT COOPERATION AMONGST

BROKERS PRODUCES WIDER EXPOSURE OF MY

PROPERTY AND MAY RESULT IN IT BEING SOLD OR

LEASED SOONER AND AT A HIGHER PRICE THAN

WOULD BE THE CASE WERE MY BROKER NOT TO

COOPERATE WITH OTHER BROKERS. I FURTHER

UNDERSTAND THAT WHEN MY BROKER

COOPERATES WITH OTHER BROKERS, I CAN STILL

HAVE THE ARRANGEMENTS FOR THE SHOWING OF

THE PROPERTY AND ALL NEGOTIATIONS WITH ME

OR MY ATTORNEY MADE ONLY THROUGH MY

LISTING BROKER'S OFFICE, SHOULD I SO

DESIRE.However, despite my awareness of these factors, I direct that this property is to be marketed only through the

efforts of the listing broker. This listing is not to be published in any multiple listing service. I will only consider offers on this property which are obtained by the listing broker, and I will only allow showings of this property to be conducted by the listing broker or his or her duly authorized representatives. THE LISTING BROKER IS HEREBY

DIRECTED NOT TO COOPERATE WITH ANY OTHER

BROKER.

Trust Account Withdrawalsmust be made payable to aspecific person, never to "cash." Equal Commission SharingAny offer to share commissions with other firms must be made on the same terms to all who cooperate.All copies of contracts of sale and listing agreements must be kept for

• years

The License Act specifically mentions the following

offenses that are subject to disciplinary action:

§ Making false promises or substantial misrepresentation§ Acting for more than one party in a transaction without the knowledge of all parties thereof§ Pursuing a flagrant and continued course of misrepresentations or making of false promises§ Failure to account for or pay over money belonging to others§ Conduct demonstrating unworthiness, incompetence, dishonesty, or bad faith§ Failing to provide a client with a copy of a contract at the time of signing, or failing to specify an expiration date in a listing§ Using a lottery, contest, game, prize, or drawing to promote the sale of real estate§ Being convicted of a crime of which the Commission does not have knowledge§ Collecting a commission as a broker in a transaction while simultaneously representing either party in a different

capacity for a consideration (for instance, acting as attorney and broker)§ Using any trade name or insignia of a real estate organization while not being a member§ Paying any compensation or commission to an unlicensed person except in some circumstances to a buyer§ Any other conduct constituting fraud or dishonest dealing§ As a salesperson or broker-salesperson, accepting any commission or valuable consideration from anyone except the employing broker§ Procuring a real estate license through fraud or deceit§ Commingling the licensee's own money with that of clients and customers or failing to maintain and promptly deposit others' money in a special trust account§ Selling property in which the licensee has an interest without disclosing in the contract of sale that interest and the fact that the seller is a licensed real estate salesperson or broker§ Buying property without disclosing in the contract of sale that the buyer is a licensed real estate salesperson or broker§ Violating any of the rules regulating rental practices§ Failing to notify the Commission within 30 days of conviction, indictment, or being charged with a crime, or of the suspension or revocation of any real estate license issued by another state, or of initiation of disciplinary proceedings§NJREC has the power to order a licensee to"cease and desist"from any unlawful practice§ Violating any of the above or the administrative rules adopted by the Commission All ads must specify the property'sMunicipal Location A buyer's representativecancontact a FSBO owner whose number is listed in the Do-Not-Call registry about a client's potential interest in the property because this call is not a telephone solicitation by the buyer's representative. Note that the buyer's representative can only discuss his/her client's interest in the property and not use a purported client's interest as a way to also discuss the possibility of the FSBO owner listing his/her property with the buyer's representative.Buyer rebates may be paid only to and from the Broker to the Purchaser. The arrangement must be agreed upon at the start of the relationship and included, for example, in the original buyer-agency agreement. The purchaser must be advised to contact a tax professional about the income tax consequences of a rebate, and all

parties to the transaction, including any mortgage lender, must be made aware of it.The Commission requires thatall sales contracts prepared by licensees contain an Attorney Review Clause,giving buyer and seller the right to consult an attorney, who maydisapprove a contract withinthree business daysafter delivery of signed contracts to both parties.