By: Cristina N. Hyde, JD
Early last month, the Department of Banking and Insurance (DOBI) issued Bulletin No. 22-07, warning real estate licensees of the importance of continued compliance with the Real Estate Broker and Salesperson Act (the “Act”).
Speaking specifically to those functioning as teams and the brokers of record who are managing them, Commissioner Marlene Caride warned of the possible confusion caused by the perception that teams are operating independently of the brokerage firm through which they are licensed.
Recognizing that real estate teams are a growing trend in the real estate industry, DOBI explained that compliance with the Act is required in order to make it clear that teams are not a separate brokerage. The intent of Bulletin No. 22-07, therefore, was to serve as a reminder and reinforce the importance of the Act’s requirements which include:
- A reminder that the Act holds the employing broker of record responsible for the supervision of all licensees.
- A reminder that licensees can only accept compensation from their employing broker.
- A reminder that all office locations must be licensed with the Commission, properly supervised by a broker of record and in compliance with the Act.
- A reminder that all advertising shall be compliant with the parameters set out in J.A.C. 11:5-6.1; including the requirement that the name of the individual or entity on record with the Commission shall be displayed on all advertising materials.
- A reminder that webpages, while not prohibited, must strictly comply with the Act and regulations.
- A reminder that noncompliance will result in fines and potential license suspension or revocation.
Additional information can be found on the New Jersey Department of Banking & Insurance website. However, if you have questions about Bulletin No. 22-07, or the Real Estate Broker and Salesperson Act, Contact Us.