real estate definitions

real estate definitions

NJ Laws rules and regulations
Real estate industry is regulated by New Jersey Real Estate Commission
NJ Real Estate Commission is a division of the NJ Department of Banking and Insurance
Commission housed within Department of Banking and Insurance
The laws and regulations are for the protection of the general public

Licenses
License Requirement
State law requires that anybody who engages in the real estate business must be licensed. (auctioning is included)
Businesses cannot be sold by owners
A license is needed any for transaction involving real property if:
The transaction is for somebody else (no license is required for any transaction involving your own property)
A fee, commission, or any valuable consideration is being paid or has been promised.
Every transaction in real estate requires a broker but a salesperson can represent a broker.
In the state of New Jersey, a broker cannot sell anything out of state unless registered in that state.
A salesperson may receive a commission only from his or her employing broker. (bonuses are included)
A salesperson may work for only one broker at a given time.
It is possible for a person to be qualified to be licensed as a broker but prefer to be employed by and operate under the supervision of another broker. Such an individual would be referred to and licensed as a broker-salesperson.
Example: if two people with a broker’s license wanted to have an equal partnership in a real estate office, it is not possible. An office an only have one broker so the other would have to become a broker salesperson, manager, or open their own office.
A broker-salesperson has the same prerequisites as a broker but cannot have a trust account or maintain an office.
Only a broker can sue a customer for commission when necessary, a salesperson cannot sue anyone. The sales representative however, can sue the broker to get his/her commission.
REALTOR
Not all real estate brokers or salespersons are realtors. Only...