REAL ESTATE COMMISSION 11:5-4.3
(g) In situations where the Commission confirms that a broker has complied with all of the requirements imposed by this section, the Commission will not further investigate a complaint alleging the non-payment of a commission by a broker to a salesperson or referral agent unless such complaint is accompanied by a copy of an arbitration decision or the equivalent, or a copy of a judgment of a court of competent jurisdiction secured by the salesperson or referral agent against the broker. Unless appealed, the failure by a broker to pay monies awarded to a salesperson or referral agent under the terms of any such decision or judgment within 30 days of its effective date shall subject the broker to sanctions pursuant to N. J. S .A. 45:15-17.
(h) Broker, salesperson and referral agent licensees may only bring or maintain actions in the courts of New Jersey for the payment of compensation due them for brokerage services performed as provided in N.J.S.A. 45:15-3.
1. The Commission interprets the language “at the time the alleged cause of action arose” as used in N.J.S.A. 45:15-3 to mean at the time that the brokerage services which form the basis for the alleged claim to compensation were rendered. For example, at the time when a property was listed for sale or rental by a licensee.
2. The Commission does not interpret the language “at the time the alleged cause or action arose” as requiring that the licensee must have been actively licensed at the time that the compensation allegedly due was to have been paid. For example, the Commission does not construe this language as requiring licensure at the time of the renewal of a lease to enable a claimant to sue for compensation based upon a promise, made or in effect when the lease was originally executed, to pay additional consideration to the claimant in the event that the lease was renewed.
(i) All references to “salesperson” in this section shall be construed to also include individuals licensed as broker- salespersons. All references to “non-payment of a commission” in this section shall be construed to include the non-payment of other forms of compensation.
As amended, R.1976 d.254, eff. August 16, 1976. See: 8 N.J.R. 336(b), 8 N.J.R. 422(a). As amended, R.1983 d.471, eff. November 7, 1983. See: 15 N.J.R. 1343(a), 15 N.J.R. 1865(c). “Salesman” replaced by “salesperson”. Amended by R.1989 d.424, effective August 21, 1989 (operative November 19, 1989). See: 21 N.J.R. 1308(b), 21 N.J.R. 2519(a). Language entirely deleted and replaced with more detailed requirements including essential provisions which must be included in all contracts between brokers and salespersons. Amended by R.1994 d.57, effective February 7, 1994. See: 25 N.J.R. 4851(a), 26 N.J.R. 799(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 (a), rewrote 2; deleted former (c); recodified former (d) through (j) as (c) through (i); and changed N.J.A.C. references throughout. Amended by R.2012 c1006, effective January 3, 2012 See: 43 N.J.R. 1791(a), 44 N.J.R. 86(b).
Section was “Employment agreements; commissions; accounting to salespersons, actions for collection of compensation”. Inserted “or referral agent” throughout; in (a)3, inserted “or referral agent’s”; and in the introductory paragraph of (h), substituted a comma for “and” following “Broker”.
11:5-4.2 Broker supervision and oversight of individual licensees, office operations and escrowed monies
(a) The following apply to individual broker licensees operating as sole proprietors (employing brokers) or as the authorized broker (broker of record) of a corporation or other entity licensed as a New Jersey real estate broker. As used in this section, the term “individual broker” shall refer to employing brokers and brokers of record and the term “broker licensee” shall refer to sole proprietors and corporations or other entities licensed as brokers.
1. The Commission will hold responsible individual brokers for any actions of the broker licensee or any person employed by or licensed through the broker licensee taken in the pursuit of its real estate brokerage business which violate any of the provisions of the real estate license law, N.J.S.A. 45:15-1 et seq., or the regulations promulgated thereunder.
i. This responsibility shall apply regardless of where the persons licensed through the broker licensee engage in actions in pursuit of the broker licensee’s real estate brokerage business.
2. Every real estate transaction in which a broker licensee participates as a broker shall be under the ultimate supervision of the individual broker.
3. The individual broker shall, in addition to ascertaining that a separate account is maintained for the funds of others coining into the possession of the broker licensee, make certain that no such funds of others are disbursed or utilized without his or her express authorization and knowledge.
4. The provisions of this subsection do not apply to brokers licensed as broker-salespersons.
As amended, R.1983 d.471, effective November 7, 1983. See: 15 New Jersey Register 1343(a), 15 New Jersey Register 1865(c). Subsections (a) and (c) deleted; subsection (b) recodified as (a). Amended by R1995 d.23, effective January 17, 1995. See: 26 New Jersey Register 3111(a), 27 New Jersey Register 370(a). Amended by R.1998 d.246, effective May 18, 1998. See: 30 New Jersey Register 278(a), 30 New Jersey Register 1827(a). Rewrote (a).
11:5-4.3 Use of license for the benefit of others
(a) No arrangement, direct or indirect, shall be entered into by any licensee whereby an individual licensee lends his name or license for the benefit of another person, firm or corporation, or whereby the provisions of the real estate statute and rules relating to licensing are circumvented.
(b) Lending a broker’s license for the benefit of another person, firm or corporation shall be construed as including