NJ Real Estate Final Exam Flashcards

New Jersey Real Estate License Exam Information

• The cost of the New Jersey salesperson's license examination is $47.
• After completing the real estate licensing course, individuals have 1 year to pass the state exam and apply for a permanent license.

License Requirements

• Only individuals receiving consideration for participating in real estate transactions require a real estate license in New Jersey.
• A son selling a house for his parents in exchange for a car does not need a real estate license, while others in specific roles, such as executors or paid agents, do.

Rental Referral Agencies

• Rental referral agencies must check apartment availability daily.
• If charging prospective tenants an advance fee of $50, this fee must be held in an escrow account.

Broker and Licensee Dynamics

• A qualified licensee working for another broker, rather than independently, is referred to as a broker-salesperson.
• Failure to renew a license results in it being void after two years.

Referral Agents and Brokers

• Referral agents can only refer prospects to their supervising broker or designated broker.
• If a broker's license is revoked, all agents employed under that broker's license face suspension.

License Violations and Trust Accounts

• The New Jersey Real Estate Commission can suspend a license for violations of the License Act.
• Brokers must maintain trust accounts in authorized New Jersey institutions.
• The Commission has the authority to revoke agents' licenses promptly for serious crimes, including kidnapping.

Broker Commissions and Agency Representation

• Only brokers can provide rebates to purchasers from a broker's commission.
• A broker who operates from a salesperson's home violates real estate law.
• Legal for a salesperson to prepare a sales contract for a four-family home.
• Brokers are required to deposit funds received for transactions into their trust accounts within 5 business days.

Commingling and Agency Relationships

• "Commingling" refers to the improper mixing of broker funds with trust funds.
• Brokers acting without agency duties are considered transaction brokers.
• The fiduciary relationship between an agent and principal is built on trust and confidence.

Termination of Agency and Fiduciary Duties

• A seller can terminate the agency relationship by revoking the listing agreement if unsatisfied with the broker's performance.
• One key element of a fiduciary relationship is prioritizing the principal's interests above all else.
• Brokers have a duty of disclosure, which involves keeping the principal informed about all relevant facts affecting a transaction.

Dual Agency Considerations

• Dual agency occurs when a broker represents both the buyer and the seller in a transaction.
• Brokers are permitted to represent both parties in a dual representation scenario only if they inform both and obtain their consent.

Commission Structure

• Unless otherwise agreed in writing, brokers typically receive the sales commission from the seller once the transaction closes.
• Independent contractor salespeople earn negotiated commissions on transactions.
• Salespeople may be guilty of puffing if they make exaggerated claims about a property.

Test your knowledge with these flashcards designed for the New Jersey Real Estate Final Exam. Covering essential information such as licensing fees and requirements, this quiz will help you prepare for the state examination. Perfect for anyone looking to pass the real estate licensing process in New Jersey.