Questions and Answers
What is the cost of the New Jersey salesperson's license examination?
$47
After completing a real estate licensing course in New Jersey, how long does an individual have to pass the state exam and apply for a permanent license?
1 year
Of the following, who needs a real estate license? (Select one)
Who must possess a real estate license in New Jersey?
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How often must a rental referral agency check the availability of an apartment?
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What must a rental referral agency do with an advance fee charged to prospective tenants?
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What term describes a licensee who is qualified to be a broker but wishes to work for another broker?
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How long does a failure to renew a license void it?
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Who is a referral agent allowed to refer prospects for brokerage services to?
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What happens to the licenses of agents if a broker's license is revoked?
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What can the New Jersey Real Estate Commission do for a violation of the License Act?
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In New Jersey, where must real estate brokers maintain their trust accounts?
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Which crime allows the New Jersey Real Estate Commission to revoke the license of an agent awaiting trial?
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Who may provide a purchaser of real estate with a portion of the broker's commission in the form of a rebate?
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When did a broker violate real estate law?
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What is legal for a real estate salesperson to do?
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Within how many business days must brokers deposit funds of others into their trust account after acceptance?
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What does the violation referred to as 'commingling' mean?
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If a broker has no agency duties, how are they acting?
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What describes the fiduciary relationship between an agent and the agent's principal?
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How can a seller terminate the agency relationship with a broker?
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What is one essential element of a fiduciary relationship?
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What is the duty of a real estate broker to keep the principal informed of?
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What is an example of dual agency?
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Under what condition is a broker permitted to represent both the seller and the buyer in the same transaction?
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When will the broker usually receive the sales commission from the seller?
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What kind of commissions does a real estate salesperson who is an independent contractor receive?
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Why was the salesperson guilty of puffing?
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Study Notes
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.
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Description
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.