11:5-7.3 INSURANCE
Development will be considered to be in compliance with this subsection.
(b) Any compensation paid by a real estate broker to a referral agent shall be limited to compensation for referring prospective consumers of real estate brokerage services to the broker. Real estate brokers are prohibited from offering incentives to the referral agents, salespersons or broker-salespersons licensed under them for merely referring clients or customers to a particular lender, mortgage broker or other provider of related services. Any compensation paid by a real estate broker to a salesperson or broker-salesperson for services in transactions related to a sale or rental transaction must be for services actually performed by the salesperson beyond mere referral to a mortgage lender, mortgage broker or other provider of related services. For example, a real estate broker who provides in-house mortgage services may compensate a salesperson licensed with that broker who performs actual mortgage services. However, the broker is prohibited from offering bonuses or any extra consideration of any kind to licensees of his or her firm for merely referring buyers to the in- house mortgage service or any particular lender or mortgage broker. For example, a real estate broker shall not offer or pay a salesperson a higher commission rate on a real estate transaction because the mortgage is placed through the in-house mortgage service or affiliated lender. A broker shall not award prizes or bonuses to salespersons based upon the number of customer referrals made to the in-house mortgage service or to a particular lender.
New Rule, R.1992 d232, effective June 1, 1992. See: 23 N.J.R. 3424(b), 24 N.J.R. 2058(b). Amended by R.1998 d.497, effective October 5, 1998. See: 30 N.J.R. 2333(a), 30 N.J.R. 3646(a). In (a), changed N.J.A.C. reference. Amended by R.2012 d.006, effective January 3, 2012. See: 43 N.J.R. 1791(a), 44 N.J.R. 86(b). In (b), inserted the first sentence, inserted “referral agents,” “or broker- salesperson” and “to a mortgage lender, mortgage broker or other provider of related services”; and substituted “licensees of his or her firm” for “salespersons” following “kind to”.
11:5-7.3 Licensees with in-house mortgage services prohibited from excluding all outside mortgage solicitors
Real estate brokers who provide mortgage financing services to buyer/borrowers in-house, whether through computerized loan origination systems, or affiliated lenders or affiliated mortgage brokers, etc., are prohibited from limiting buyer’s choices by denying outside lenders reasonable access to solicit mortgage loans in their real estate offices. Reasonable access will be presumed where three or more outside, non-affiliated lenders are permitted to send solicitors into the real estate office during business hours to contact salespersons. The reasonableness of the broker’s overall office policy concerning rate sheets, and access by outside lenders, other visitors and solicitors, will also be considered. In no event shall this rule be interpreted to require any real estate broker to permit any one specific lender to solicit loans inside the real estate office or to require the real estate
broker to set aside any particular space or facilities inside the real estate office for the use of outside mortgage solicitors.
New Rule, R.1992 d.232, effective June 1, 1992. See: 23 New Jersey Register 3424(b), 24 New Jersey Register 2058(b). Public Notice: Petition for Rulemaking. See: 28 New Jersey Register 1412(c). Public Notice: Action on petition for rulemaking. See: 28 New Jersey Register 2414(a). Public Notice: Action on petition for rulemaking. See: 28 New Jersey Register 4816(a).
11:5-7.4 Blockbusting; solicitation
(a) No licensee shall affirmatively solicit the sale, lease or the listing for sale or lease of residential property on the grounds of alleged change of value due to the presence or prospective entry into the neighborhood of a person or persons of another race, religion or ethnic origin, nor shall distribute, or cause to be distributed, material, or make statements designed to include a residential property owner to sell or lease his property due to such change in the neighborhood.
(b) Every real estate broker who, in a personal meeting, solicits the sale, lease or the listing for sale or lease of three or more residential properties fronting on either side of any street between intersecting or cross streets or between a cul-de-sac or other like termination point and an intersecting or cross street within the sante month, whether directly or through personal meetings attended by his or her firm’s licensees, shall maintain a permanent record for at least one year from the date of said solicitation, which shall be available for inspection by the Commission or any representative thereof upon request, setting forth the name and address of each person so solicited, the address of the property involved, the name of the licensee actually making such solicitation, and the date upon which the solicitation took place. At the request of the Commission or any representative thereof, any such broker shall file with the Commission a copy of the permanent record, or a statement containing the same information as set forth in the permanent record. Such filing shall be made with the Commission no later than 10 days following the request therefore.
As amended, R.1972 d.127, effective June 28, 1972. See: 4 N.J.R. 71(a). Amended by R.1998 d.497, effective October 5, 1998. See: 30 N.J.R. 2333(a), 30 N.J.R. 3646(a). In (b), substituted “who, in a personal meeting, solicits” for “soliciting” and “personal meetings attended by his or her salespersons,” for “his salesman,” in the first sentence; and deleted a former (c). Amended by 8.2012 d.006, effective January 3, 2012. See: 43 N.J.R. 1791(a), 44 N.J.R. 86(b). In (a), substituted “licensee” for “broker or salesman”; and in (b), substituted “firm’s licensees” for “salespersons” and “10” for “ten”.
11:5-7.5 Proscription of price-fixing and agreements in regard to methods of arriving at commission
(a) No licensee shall combine, conspire, suggest, or recommend to, or with any other licensee(s) that any rate, commission or fee to be charged by them, or any division of such commission by them be fixed, established, maintained,