Patricia is a licensed New Jersey salesperson affiliated with Horizon Realty. She receives a referral fee directly from a buyer she helped find a home, without her broker's knowledge or involvement. Under New Jersey law, which of the following best describes the legal consequence of this arrangement?
Correct Answer
A) The arrangement violates New Jersey law because a salesperson may only receive compensation through their employing broker, not directly from a consumer.
Under N.J.S.A. 45:15-1 et seq., a licensed salesperson in New Jersey may only receive compensation for real estate services through their employing broker. It is illegal for a salesperson to accept any commission, fee, or other valuable consideration directly from a consumer, buyer, seller, or any party other than their employing broker. This rule protects consumers and ensures broker oversight of all compensation. Patricia's direct acceptance of a referral fee from the buyer violates this fundamental requirement and could subject her to disciplinary action by the NJREC.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Practice Of Real Estate Question
Background Knowledge for Practice Of Real Estate
Real World Application in Practice Of Real Estate
Common Mistakes to Avoid on Practice Of Real Estate Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
More Practice Of Real Estate Questions
A transaction coordinator in Cary is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
Nevada law requires purchase agreement copies be kept for at least:
A closing-file reviewer in Raleigh is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
A firm owner in Chapel Hill is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
Marcus is a Michigan licensed real estate salesperson whose license expired 45 days ago. He has completed all required continuing education. Under Michigan law, what is his most appropriate course of action to resume practicing real estate?
- → A compliance reviewer in High Point is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
- → A provisional broker in Raleigh is answering a client question about advertising, supervision, and representation disclosures. Which statement best applies under current North Carolina law?
- → A buyer representative in Huntersville is updating the policy manual on prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
- → A Charlotte broker is answering a client question about advertising, supervision, and representation disclosures. Which statement best applies under current North Carolina law?
- → Choose the North Carolina concept that fits this description about prelicensing, Postlicensing, and the 18-month deadline. Description: The North Carolina course sequence totaling ninety hours after initial licensure
- → Who issues real estate licenses in North Carolina?
- → Can brokers commingle funds in North Carolina?
- → A buyer representative in Greenville is revising a training memo on BIC eligibility, designation, and supervision. Which statement is NOT accurate under current North Carolina law?
- → A Louisiana licensee encounters a licensee receives money belonging to others. What should the licensee remember?
- → A listing broker in Asheville is updating the policy manual on trust money receipt, deposit timing, and exceptions. Which statement best applies under current North Carolina law?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Property Flyer Generator — 2026 Guide for U.S. Agents: Step-by-Step + Best Practices
Learn how Property Flyer Generator works and how U.S. real estate agents use it in 2026. Includes setup steps, practical examples, and best-practice tips.
Why Real Estate Exam Notes Stop Helping Once You Avoid Mixed Practice
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for real estate exam notes...
Real Estate Exam Practice Questions by Topic (2026): Free Sets for Contracts, Agency, Financing
Get topic-based real estate exam practice sets and a simple sequence to move from learning to timed mocks.