REAL ESTATE COMMISSION 11:5-3.10
of such records and acknowledge responsibility to advise the Commission of any change in the name of the custodian or place of depository for a period of six years.
(d) When anew broker ofrecord of a corporation or partnership is being substituted for the existing broker of record, the existing broker of record satisfies the certification requirements of (c) above when in compliance with the substitution procedures of (e) below.
(e) No new broker of record of a corporation or partnership shall be substituted unless the new broker of record and the former broker of record prepare and submit a joint affidavit to the Commission certifying that:
1. Custody of all funds held in trust for principals has been assumed by the new broker of record;
2. The new broker of record has reviewed all pending transactions and is satisfied that all funds held in trust have been accounted for;
3. All salespersons’, broker-salespersons’ and referral agents’ commissions and other compensation are paid to date;
4. The new broker acknowledges responsibility to pay salespersons’, broker-salespersons’ and referral agents’ commissions in accordance with the policy for payment existing on the date of substitution;
5. No fines are presently owed to the Real Estate Commission, and if any fines are assessed after the date of substitution for actions occurring prior to substitution, both the former broker and new broker are jointly and severally responsible for payment;
6. All signs and advertisements have been changed to reflect the broker now authorized to transact business in the name of the firm;
7. All records required to be maintained pursuant to N.J.A.C. 11:5-5.4 have been turned over to the new broker, and the new broker acknowledges responsibility to maintain such records for a period of six years;
8. The new broker acknowledges that he or she will be responsible to transact business in the name and on behalf of the firm.
As amended, R.1983 d.471, effective November 7, 1983. See: 15 N.J.R. 1343(a), 15 N.J.R. 1865(c). “Salesman” changed to “salesperson”, language simplified. Amended by R.1985 d.186, effective April 15, 1985. See: 16 N.J.R. 2228(b), 17 N.J.R. 970(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 (c), changed N.J.A.C. reference and deleted “permanent type” following “maintain” in 10; and in (e), changed N.J.A.C. reference in 7. Amended by R.2004 d.130, effective April 5, 2004. See: 35 N.J.R. 4812(a), 36 N.J.R. 1780(a). In (a), substituted “within five business days of the cessation of business” for “immediately”. Amended by R.2012 d.006, effective January 3, 2012. See: 43 N.J.R. 1791(a), 44 N.J.R. 86(b). In (a), substituted a comma for “and” following the first occurrence of “salespersons” and inserted “and referral agents”; in the introductory paragraph of (c), substituted “by the Commission” for “as broker or salesperson”; in (c)1, inserted “referral agents,”; in (c)3 and (e)3, inserted “and other compensation”; in (c)3, inserted “, referral agents”; and in (e)3 and (e)4, inserted “, broker-salespersons’ and referral agents’ “.
11:5-3.10 Sponsoring of license applications or transfers of license
(a) The New Jersey Real Estate Commission, Department of Banking and Insurance, hereby grants to brokers of record or employing brokers the right to have initial applications for licenses of referral agents, salespersons or broker-salespersons who will be in their employ authorized by one other person, other than the broker of record or employing broker. This other person must be the holder of a broker’s license and an officer of the broker of record’s corporation or a member of his or her partnership, as the case may be. In the event the employing broker is a sole proprietor, such a designee shall be licensed as a broker-salesperson in the employ of the employing broker. The broker of record or employing broker, as applicable, shall file with the New Jersey Real Estate Commission a power of attorney granting this authority to the designated person at least 10 days prior to delegating performance of the function of that person.
(b) Any employing broker or broker of record may authorize one individual in their employ to sign and surrender to the Real Estate Commission, in accordance with the requirements of N.J.S.A. 45:15-14, the real estate referral agent, salesperson or broker-salesperson license of any licensee whose employment relationship with that employing broker or broker of record is terminated. The employing broker or broker of record shall, on a form to be provided by the Commission, notify the Commission in writing of the designation of the employee so authorized, which person need not be the holder of a real estate license. The form designating the authorized person shall be filed with the Real Estate Commission at least 10 days prior to delegating performance of the function of that person. The employing broker or broker of record shall immediately notify the Real Estate Commission in writing in the event that, for any reason, the authority of the person so designated to perform that function is revoked, and shall indicate whether a new designee is to be named. Only the employing broker or broker of record and one other person duly designated and identified to the Real Estate Commission as provided in this section may perform the said license transfer functions at any one time.
R.1972 d127, effective June 28, 1972. See: 4 N.J.R. 71(a). Amended by R.1983 d.471, effective November 7, 1983. See: 15 N.J.R. 1343(a), 15 N.J.R. 1865(c). “Salesman” replaced by “salesperson”. Amended by R.1987 d.119, effective March 2, 1987. See: 18 N.J.R. 2418(a), 19 N.J.R. 409(b). Substantially amended. Amended by R.2012 d.006, effective January 3, 2012. See: 43 N.J.R. 1791(a), 44 N.J.R. 86(b).