A broker maintains a real estate agency and terminated two salespersons. In this situation, the broker is REQUIRED to take all the following actions with regard to these two salespersons EXCEPT:
Answer(s): B
According to NJREC Rules and Regulations (N.J.A.C. 11:5-4.1) and the Broker-Salesperson employment agreement requirements:Brokers must provide a full written accounting of monies due.Any undisputed commission due must be paid within 10 business days of the broker receiving the funds.The broker must honor the compensation provisions of the terminated salesperson's written employment agreement.However, salespersons are not permitted to remove original sales or listing contracts, which remain the property of the broker.Therefore, the action the broker is NOT required to take is B.
NJREC Rules and Regulations, N.J.A.C. 11:5-4.1 (Employment Agreements and Compensation).
As required by the New Jersey Real Estate Sales Full Disclosure Act, before signing any contract for the purchase or lease of a property registered with the New Jersey Real Estate Commission, the purchaser or lessee MUST be provided with a copy of the:
The New Jersey Real Estate Sales Full Disclosure Act (RESFDA) requires developers of certain subdivided land, condominiums, and other registered developments to provide purchasers or lessees with a Public Offering Statement approved by the New Jersey Real Estate Commission.This Public Offering Statement contains essential information about the development, financial and legal obligations, and rights of buyers.The Statement of Record is filed with the Commission but is not delivered to the purchaser.Deeds or plat maps are not substitutes for the disclosure document required by law.Thus, the correct answer is B.
N.J.S.A. 45:15-16.27 et seq., New Jersey Real Estate Sales Full Disclosure Act; NJ Real Estate Salesperson Study Guide, Chapter on Land Sales.
New Jersey Real Estate Commission regulations require a licensee to terminate membership in a real estate board or multiple listing service whenever the organization:
Answer(s): A
The NJ Real Estate Commission prohibits price-fixing or collusion regarding commission rates. If a real estate board, trade association, or MLS suggests or enforces uniform commission rates among member brokers, participation in such a practice would violate antitrust laws as well as NJREC regulations.In such cases, licensees must terminate their membership immediately to avoid disciplinary action. Lobbying, dues disputes, or general disagreements with rules are not grounds for mandatory termination.
NJREC Rules and Regulations; NJ Real Estate Salesperson Study Guide, Chapter on Antitrust and Commission Rules.
A buyer made an offer to purchase a home using a VA loan, but the property's appraised value was determined to be less than the contract price. If the buyer really wants the property, which of the following choices is the buyer's best option?
VA loans include an escape clause: buyers cannot be forced to purchase a home for more than its appraised value. However, if the buyer still wants the property, they can:Pay the contract price, but must cover any amount above the VA appraised value in cash, since the VA will only guarantee the appraised portion.Sellers are not forced to lower their price to the appraisal amount.An FHA loan will not automatically cover the shortfall.Thus, the best option is B.
U.S. Department of Veterans Affairs Loan Guaranty Program; NJ Real Estate Salesperson Study Guide, Chapter on VA and FHA Financing.
Are electronic signatures enforceable on a real estate contract?
Electronic signatures are legally enforceable under the federal Electronic Signatures in Global and National Commerce Act (E-SIGN Act, 2000) and the New Jersey Uniform Electronic Transactions Act (UETA, N.J.S.A. 12A:12-1 et seq.).These laws confirm that electronic signatures are valid and binding in real estate contracts, listings,leases, and other documents.They are not restricted to deeds, and do not require witnessing to be valid.Therefore, the correct answer is B.
Federal E-SIGN Act (2000); NJ Uniform Electronic Transactions Act; NJ Real Estate Salesperson Study Guide, Chapter on Contracts and Closing.
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