Question 12

Licensees must terminate membership in a real estate board when uniform commission rates are suggested.

New Jersey Real Estate Commission regulations require that a licensee must terminate their membership in a real estate board or multiple listing service if the organization suggests uniform commission rates among all member brokers.

A) suggests uniform commission rates among all member brokers

This option is correct because the New Jersey Real Estate Commission explicitly prohibits the suggestion of uniform commission rates, as it can lead to anti-competitive practices. Therefore, a licensee must terminate their membership if such suggestions are made.

B) lobbies against legislation that the licensee personally favors

This option is incorrect because a licensee's disagreement with an organization's lobbying efforts does not necessitate termination of membership. The regulations do not require action based solely on differing political opinions or legislative support.

C) charges dues that the licensee feels are excessive

This option is also incorrect. While a licensee may feel that the dues are excessive, the regulations do not require termination of membership based solely on the financial aspects of the organization.

D) advocates rules, practices, and/or standards with which the licensee does not agree

This option is incorrect as well. Although a licensee may disagree with certain rules or practices, such disagreements do not automatically mandate termination of membership unless they conflict with specific regulatory stipulations, such as those regarding commission rates.

Conclusion

The requirement for termination of membership is specifically tied to the suggestion of uniform commission rates, making Option A the only correct choice. The other options, while potentially discomforting for a licensee, do not fall under the mandatory termination criteria set by the New Jersey Real Estate Commission. Thus, Option A stands out as the definitive answer.