New Jersey broker Frank is disciplined by the NJREC and receives a two-year license suspension. During his suspension, Frank's former salesperson associate, Gina, continues to operate the brokerage under her own salesperson license, using Frank's office space and business name, and splitting commissions with Frank as agreed. After the NJREC discovers this arrangement, which of the following best describes the consequences under New Jersey license law?
Correct Answer
A) Gina faces discipline for practicing real estate brokerage without a supervising broker, and Frank faces additional discipline for acting as a broker while suspended.
Under N.J.S.A. 45:15-17, a suspended licensee is prohibited from engaging in any real estate brokerage activity, including receiving commissions or directing a brokerage operation. Frank's arrangement with Gina—receiving commission splits and effectively directing the brokerage while suspended—constitutes acting as a broker while suspended, which is a serious additional violation. Gina, as a salesperson, cannot legally operate a brokerage without a licensed supervising broker; operating under a suspended broker's name and splitting commissions with him makes her complicit in unlicensed brokerage activity, exposing her to discipline as well.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
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In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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