Question 70

Payment of a referral fee by a licensed New Jersey broker to a broker licensed in another state is NOT a cause for suspension or revocation of a New Jersey real estate license.

This action is permissible under New Jersey law, and thus does not result in suspension or revocation of a real estate license.

A) failing to provide a client with a copy of the signed exclusive listing contract

This action is a violation of New Jersey real estate regulations, as it is required for brokers to provide clients with copies of all signed documents. Failing to do so can lead to disciplinary actions, including suspension or revocation of a license.

B) delivering a consumer information statement to a seller after having made a listing presentation

Delivering the consumer information statement at the appropriate time is mandated by law in New Jersey. Providing it after a listing presentation, if not done correctly, can be considered a violation and may result in disciplinary action.

C) payment of a referral fee by a licensed New Jersey broker to a broker licensed in another state

This action is allowed under New Jersey real estate laws, as brokers may pay referral fees to brokers in other states without facing suspension or revocation of their license. Therefore, this is the correct answer to the question.

D) collecting a commission as a broker from both parties to a transaction while representing both parties as their agent

This practice is known as dual agency, and it requires full disclosure and consent from both parties involved. If not handled properly, it can lead to serious violations, resulting in suspension or revocation of a real estate license.

Conclusion

The correct answer, C, stands out as it aligns with permissible practices under New Jersey real estate laws, while the other options (A, B, and D) involve violations that could lead to disciplinary actions against a licensed broker. Understanding these distinctions is crucial for maintaining compliance with real estate regulations.