NJ REAL ESTATE TERMS KEY WORDS Flashcards

NJ REAL ESTATE TERMS & KEY WORDS Flashcards BROKER OF RECORD - OFFICE SUPERVISORThe supervising broker of a partnership or corporation who is responsible for the actions and inactions of all licensed sales persaons and broker-sales persons of such entities.EMPLOYING BROKERThe supervising broker for a real estate company organized as a sole proprietorship.ESCROW ACCOUNT - TRUST ACCOUNT.- An account established by the broker or Attorney, it holds clients earnest money deposits or other funds.- Accounts may only be in New Jersey- All accounts and information pertaining to the accounts must be filed with the Commission by affidavit or certification with application or renewal for broker's license.FRANCHISE AND TRADE NAME ADVERTISING- Insignia or trade names may not imply common management or ownership unless this is actually the case.- Licences using a franchise trade name must include the legend "Each office independently owned and operated" in all advertising, except sale signs and small classified spot ads.- Advertising referring to membership in a Multiple Listing Service (MLS) must specify the complete name of the listing service in all advertising, except for sale signs, small classified spot ads, business cards, and business signs.COMMINGLING- Illegally mixing deposits or monies, collected and/or belonging to a client, with one's personal or business account.- Failing to promptly deposit monies received into this account ("Promptly" is defined as within 5 business days after receipt of such funds)- Failing to promptly segregate property belonging to others.- A normal amount of business funds kept in the trust account to maintain continuity of the account does not constitute commingling.DUAL CAPACITYCollecting a commission as a real estate broker in a transaction, when at the same time representing either party in a different transaction for a consideration, i.e., lawyer, executor.CUL-DE-SAC- A passageway with only one outlet.- A blind alley.- A turn-around.- A street that ends in a circle instead of going into another street.LICENSE TRANSFERTo transfer a license, the original broker will first terminate the license of the salesperson or the broker-salesperson through the online real estate commission procedures.Once the license is inactive in the system, the new broker can affiliate the license to his firm, again

through the online system GUARANTY FUNDReimburses persons defrauded or badly served by licensees in real estate transaction. There is a $20,000.00 limitation on recovery for any 1 claim.

BRANCH OFFICE- A secondary place of business apart from the principal or main office from which real estate business is conducted.- A branch office must be run by a licensed real estate broker working on behalf of the broker.FALURE TO RENEW LICENSEIf a broker or salesperson license is not renewed for two consecutive years from the expiration date of the license last held, the license would be cancelled.Such persons will have to re-qualify for licensure as if they had never been licensed.A license is active only when the license fee is paid and the license is being held by a broker.ABANDONMENTThe relinquishment of all rights and title to a property with no intention of reclaiming ownership.DISCRIMINATORY COMMISSION SPLITLicensees shall not discriminate in commission splits paid to other brokers and shall maintain a written file showing why such commission splits varied from company norm.WAIVER OF BROKER COOPERATION FORMForm signed by seller and listing agent stating that the broker does not need to cooperate. see page 286 ADVERTISING REBATES- All ads advertising rebates must include a disclosure concerning the purchaser's obligation to pay any applicable taxes for receipt of the rebate.- A notice that the purchaser should contact a tax professional regarding the tax implications of receiving the rebate.- All required disclosures and notices must be conspicuously displayed and there must not be any deceptive claims or misrepresentations of the rebate.LICENSING of PARTICULAR VETERANS- Veterans who were wounded or disabled in the line of Duty may qualify for a brokers license by completing an approved program in real estate and passing the broker test.- The experience requirement and all fees are waived.- Veteran's should contact the Commission prior to embarking on any such program to determine if they qualify into obtain approval for the coursework they intend to pursue.ACCESS RIGHTThe right of a property owner to have ingress and egress to and from his property.LICENSING EXAMApplicants for broker and salesperson licenses must pass a licensing exam, designated by the Commission, which is administered daily by an INDEPENDENT testing service.REAL ESTATE COMMISION- Consists of 8 members, all appointed by the Governor for a term of 3 years, except the governmental designee.- 5 of the members must be real estate brokers and state residents for 10 years prior to appointment.- 2 are public members who may not be real estate licensees, and the final member is the governmental designee who is an employee of an appropriate state department and serves at

the pleasure of the governor.ATTORNEY REVIEWIn New Jersey, this is a clause that must appear in all purchase and sale agreements and all leases prepared by real estate licensees, allowing buyers and sellers a period of three days to consult an attorney who can review and cancel the contract or lease.