Victor is a licensed New Jersey broker who recently left his previous brokerage and opened his own independent brokerage under his legal name, 'Victor Fontaine Realty.' He immediately begins advertising listings on Zillow under the name 'Victor Fontaine Realty' before his new brokerage's license has been issued by the NJREC. A competitor files a complaint. Under New Jersey law, the most serious concern with Victor's advertising is:
Correct Answer
B) Victor is advertising real estate services under an unlicensed brokerage, which violates the License Act
Under N.J.S.A. 45:15-1 et seq., operating or advertising a real estate brokerage without a currently valid brokerage license issued by the NJREC is a violation of the New Jersey Real Estate License Act. Even though Victor previously held a broker's license, his new independent brokerage entity 'Victor Fontaine Realty' must receive its own license from the NJREC before any advertising or solicitation of business may occur. Advertising before licensure is the core violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
More Practice Of Real Estate Questions
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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