Current through Register Vol. 56, No. 24, December 18, 2024
(a) Each broker
who ceases to be active shall within five business days of the cessation of
business return to the Commission his license, and the licenses of all
salespersons, broker-salespersons and referral agents for
cancellation.
(b) Each employee's
license must be accompanied by a letter terminating employment in compliance
with N.J.S.A. 45:15-14.
(c) No broker engaging in the real estate
brokerage business as a sole proprietor, as a broker of record of a partnership
or as a broker of record of a corporation shall be relicensed by the Commission
unless within 30 days of the date of which the broker ceases engaging in the
real estate brokerage business he or she shall complete and submit an affidavit
to the Commission certifying that:
1. The
broker's license, the corporate or partnership license, and the licenses of all
referral agents, salespersons and broker-salespersons have been returned to the
Commission for cancellation;
2. The
broker's trust account has been closed and that all funds held in trust for
others have been disbursed to proper parties;
3. All commissions and other compensation
owed to salespersons, referral agents and broker-salespersons have been paid,
or, if not yet received by the broker, will be paid upon receipt;
4. No further commissions are due the broker
except that any commissions for services previously rendered and payable in the
future upon the occurrence of specified events are described on a list attached
to the affidavit. The list shall describe the nature and amounts of such
outstanding commissions with sufficient information to identify each
transaction;
5. The broker has
notified all principals in ongoing transactions, in writing, that the broker
has ceased engaging in the real estate brokerage business or that the broker
will hereinafter engage in the real estate brokerage business in another
capacity. The notice shall describe the disposition of pending transactions and
the name of custodian and place of deposit of any funds received from
principals;
6. The broker has
removed from the licensed premises all signs indicating that the premises
contains the office of a licensed real estate broker;
7. The broker has recalled all signs and
other advertisements or trade materials indicating that the broker is engaged
in the real estate brokerage business;
8. The broker has advised the appropriate
telephone services that the firm is no longer engaged in the real estate
brokerage business, and that further telephone directories should not contain
the name of the individual or firm as licensed brokers;
9. There are no outstanding fines or
penalties due and owing the Real Estate Commission;
10. The broker acknowledges his or her
responsibility to maintain records as required in
N.J.A.C. 11:5-5.4. The broker must provide
the address of the place of depository 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 a new broker of record 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.
