Weichert Chapter 1 NJ Real Estate Flashcards

Questions and Answers

What is a broker?

One who buys and sells for another for a fee.

What are 3 other ways to call a broker?

Real estate broker, broker of record, transaction broker.

What is a broker-salesperson?

A qualified broker who practices real estate as a salesperson in another broker's office.

What is a broker's designate?

Signup and view all the answers

What is the Bureau of Subdivided Land Sales Control?

NJ state agency that approves & registers sales of out-of-state property. Signup and view all the answers

How many hours of Continuing Education study are required for license renewal?

12 hours. Signup and view all the answers

What is the Guaranty Fund?

Money set aside to reimburse persons defrauded or badly served by real estate licensees. Signup and view all the answers

Who maintains the Guaranty Fund?

NJ state treasurer. Signup and view all the answers

Who administers the Guaranty Fund?

Real estate commission. Signup and view all the answers

What must a wronged party obtain to collect from the Guaranty Fund?

A court judgment. Signup and view all the answers

How is the Guaranty Fund funded?

When initial license is issued, $10 for salesperson and $20 for broker/broker-salesperson. Signup and view all the answers

If unable to collect that judgment, within how many years may one apply to the Guaranty Fund?

6 years. Signup and view all the answers

From the Guaranty Fund, the MAX PAYOUT for one claim = $__________

20K per offense. Signup and view all the answers

In the Guaranty Fund, once a fund pays a claim against a broker, this happens: ____________

License is revoked until the fund is reimbursed with interest. Signup and view all the answers

In the Guaranty Fund: If found guilty, this happens ____________

Broker will lose license immediately (no exceptions). Signup and view all the answers

In order to apply to the Guaranty Fund, they must file a ___________ against the offender.

Criminal claim. Signup and view all the answers

Who is the administrator of real estate licenses?

NJ real estate commission. Signup and view all the answers

What is the law governing real estate practice in NJ?

Real Estate License Act (aka Title 45, chapter 15). Signup and view all the answers

The Real Estate License Act is aka ____________

Title 45, chapter 15. Signup and view all the answers

What regulation covers the sales of out-of-state property in NJ?

Real estate sales full disclosure act. Signup and view all the answers

What are the registered trademark terms reserved for members of the National Association of Realtors®?

REALTOR, REALTOR-ASSOCIATE. Signup and view all the answers

What is a referral agent?

A licensee with authority only to refer prospective buyers and sellers to the broker/broker's designate. Signup and view all the answers

What is a referral fee?

Part of a commission or fee shared with a broker who sends a client/customer to an agent. Signup and view all the answers

What is a salesperson in real estate?

A person who performs real estate activities while employed by/associated with a licensed broker. Signup and view all the answers

The administrative code is aka ____________

Title 11, chapter 5. Signup and view all the answers

Title 11, chapter 5 is aka ____________

Administrative code. Signup and view all the answers

Study Notes

Broker Definitions and Roles

A broker buys and sells for others in exchange for a fee.
Terms synonymous with broker include real estate broker, broker of record, and transaction broker.
Broker-salesperson is a qualified broker who operates as a salesperson under another broker's supervision.
Broker's designate acts in the absence of the broker within their office.

Key Regulatory Entities

The Bureau of Subdivided Land Sales Control is the NJ state agency responsible for approving and registering out-of-state property sales.
The New Jersey Real Estate Commission administers the Guaranty Fund and oversees real estate licensing.

Continuing Education and Licensure

A total of 12 hours of continuing education is required for license renewal in New Jersey.

Guaranty Fund Insights

The Guaranty Fund is designated to reimburse individuals harmed by fraudulent actions or poor service from real estate licensees.
Funding for the Guaranty Fund occurs at initial license issuance: $10 for salespersons and $20 for brokers or broker-salespersons.
To access the Guaranty Fund, wronged parties must acquire a court judgment against the offender and file a criminal claim; actions cannot be brought against a spouse.
A claim to the Guaranty Fund can be made within 6 years of obtaining the court judgment when collection isn't possible.
The maximum payout from the Guaranty Fund is $20,000 per offense.
If a claim is paid from the Guaranty Fund, the broker’s license will be revoked until reimbursement, including interest, is made to the fund.
If found guilty of misconduct, a broker will lose their license immediately with no exceptions.

Legal Framework

The Real Estate License Act, also known as Title 45, Chapter 15, governs real estate practices in New Jersey.
The Real Estate Sales Full Disclosure Act regulates the sale of out-of-state properties in New Jersey.
The Administrative Code, referred to as Title 11, Chapter 5, consists of the rules and regulations set by the real estate commission.

Additional Terms

A REALTOR or REALTOR-ASSOCIATE is a registered trademark reserved for members of the National Association of Realtors®.
A referral agent has the authority solely to refer potential buyers and sellers to a broker or broker-designate.
A referral fee refers to the portion of a commission shared with the broker responsible for sending a client to an agent.
A salesperson must operate under a licensed broker and can only receive compensation from that broker, referred to as the supervising broker.

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Description

Test your knowledge of essential real estate terminology with these flashcards from Weichert's Chapter 1. This quiz covers definitions and various roles in the real estate sector, specifically focusing on brokers and their related titles. Perfect for anyone studying real estate in New Jersey.