NJ Real Estate - Unit 2 Commission Rules and Regulations

NJ Real Estate - Unit 2 Commission Rules and Regulations Flashcards In whose home, if any, will the Real Estate Commission sometimes allow a real estate office to be located?The home of a brokerThe home of a salespersonThe home of a broker-salespersonNever in a home The home of a broker What notice is required to be included in every sales contract on a residential property prepared by a real estate licensee?A statement that the broker's commission rates do not exceed community standardsA statement that the buyer may not purchase insurance from the same company that sold the propertyDisclosure that earnest money will be deposited in a trust accountA statement that the buyer and seller may seek attorney review within three business days A statement that the buyer and seller may seek attorney review within three business days What could be considered reasonable efforts by a seller's agent to ascertain material information about a property's physical condition?Mention that the seller might complete a property disclosure statement.Hire a home inspector prior

to taking the listing:Suggest that the seller sell "as is" to

avoid making disclosures.Ask the seller questions about the property's condition and visually inspect the property Ask the seller questions about the property's condition and visually inspect the property The broker represents the seller. What duty does this broker owe the buyer?Preferential treatmentFirst loyaltyFair dealingNegotiated fees Fair dealing Under the general real estate license law, what is the maximum fine that the Real Estate Commission can impose on a licensee for a first violation?$5,000$15,000$20,000$35,000

$5,000

A salesperson accepts an earnest money deposit and turns it over to his broker. What does state law require the broker to do with the earnest money?Open a separate bank account for the depositKeep it in the account used for the salespeople's activitiesPromptly deposit it in the office's business account and keep a careful record so that it won't get confused with the broker's fundsDeposit it within five days into a trust account Deposit it within five days into a trust account Under what condition, if any, may a New Jersey licensee represent both parties in the same transaction?Under no conditionWith the informed, written consent of both partiesWith consent, whether written or oral, of either party to the transactionWith permission of the New Jersey Real Estate Commission in accordance with the license law With the informed, written consent of both parties

By New Jersey law, where must a broker open a trust account?Any authorized New Jersey financial institutionNew Jersey stockbroker's officeAny out-of-state bank that offers high interest on the depositsAn internet-based bank that pays high interest Any authorized New Jersey financial institution Which of the following activities is a permitted action by a licensed salesperson?Place earnest money deposits in a special escrow account.Leave one broker and affiliate with another.Perform real estate activities without a sponsoring broker.Work for two New Jersey brokers if each is informed and consents.Leave one broker and affiliate with another.How long is a broker required to maintain copies of trust account activities?One yearTwo yearsThree yearsSix years Six years A broker is offering her mother's house for sale and will charge no commission. Should she reveal that she is a licensed agent?No, because she is acting in a private capacity.Yes, but not until after the purchaser signs an offer.No, because no fee will be paid.Yes, as soon as she meets a prospective buyer.Yes, as soon as she meets a prospective buyer.How much notice is the Real Estate Commission obligated to give a licensee before a hearing is held on a possible violation?No noticeOne week10 days30 days 10 days To encourage attendance, a real estate firm holds a door-prize drawing at a weekend open house it is showing.What, if anything about this practice, is discussed in the Rules?The practice violates the commission's rulesThe practice is acceptable because it is in the seller's best interestsThe practice is acceptable only if it is offered at every listed houseThe practice is permitted if the prizes are less than $25 The practice violates the commission's rules A broker wants to open a branch office in a new shopping mall in the next town. Who is permitted to supervise this branch office?A salesperson with at least two years' experienceThe primary broker by phone each dayA cooperative broker who already has an office in that areaA broker-salesperson A broker-salesperson Who is entitled to a rebate of a portion of the commission?Only the sellerOnly the buyerThe referring licenseeEither the seller or the buyer Only the seller What must a broker-run advertisement in a local newspaper include?The advertisement must include the address of the property.The advertisement must be retained for six months if qualifying words for attainable financing were used.The advertisement must spell out the full name of the MLS with no exceptions.The advertisement

must include the property's municipal location.The advertisement must include the property's municipal location.How is any agreement between competing offices to establish standard commission rates viewed by the commission?The preliminary marketing contractPrice gougingIllegal price-fixingA legal industry practice under

New Jersey law Illegal price-fixing A salesperson working for a broker was disciplined for pursuing a flagrant and continued course of misrepresentations, making false promises, and failing to