8B — October 28 - November 10, 2016 — Owners, Developers & Managers — M id A tlantic Real Estate Journal
www.marejournal.com
T op R ated L aw F irm
By Mahlon Fast, J.S.C., Ret., Ehrlich, Petriello, Gudin & Plaza Obligations of Property Managers: Are You Violating the Law?
A
n employee must be licensed if they list a unit for sale or lease
is spelled out in the legisla- tion. That is to say, a broker is essentially self-employed, whereas the other categorized persons are employed by and operate under the supervision of a licensed real estate broker. (N.J.S.A. 45:15-3) A real estate broker , for the pur- poses of R.S.45:15-1 et seq., is defined to be a person, firm or corporation who, for a fee, commission or other valuable consideration, or by reason of a promise or reasonable expectation thereof, lists for sale, sells, exchanges, buys or rents, or offers or attempts to negotiate a sale, exchange, purchase or rental of real es- tate or an interest therein, or collects or offers or attempts to collect rent for the use of real estate or solicits for prospective purchasers or assists or directs in the procuring of prospects or the negotiation or closing of any transaction which does or is contemplated to result in the sale, exchange, leasing, renting or auctioning of any real estate or negotiates, or offers or at- tempts or agrees to negotiate a loan secured or to be secured by mortgage or other encum- brance upon or transfer of any real estate for others … A real estate salesperson , for the purposes of R.S.45:15-1 et seq., is defined to be any nat- ural person who, for compensa- tion, valuable consideration or commission, or other thing of value, or by reason of a prom- ise or reasonable expectation thereof, is employed by and operates under the supervision of a licensed real estate broker to sell or offer to sell, buy or of- fer to buy or negotiate the pur- chase, sale or exchange of real estate, or offers or attempts to negotiate a loan secured or to be secured by a mortgage or other encumbrance upon or transfer of real estate, or to lease or rent, or offer to lease or rent any real estate for oth- ers, or to collect rents for the use of real estate, or to solicit for prospective purchasers or lessees of real estate, or who is employed by a licensed real estate broker to sell or offer to sell lots or other parcels of real estate, at a stated salary, or upon a commission, or upon a salary and commission, or otherwise to sell real estate, or any parts thereof, in lots or other parcels. [Italics added, to emphasize the activities com- monly included in the services continued on page 18B
a loan secured or to be secured by mortgage or other encum- brance upon or transfer of any real estate for others … Some employees need not be licensed, including secretar- ies, bookkeepers, construction or maintenance personnel, or independent contractors who service the utilities, but do not have contact with tenants or prospective tenants. Titles are sometimes mis- leading and cannot be relied upon; it is the actual function that makes the difference. For example, a “superintendent” who makes repairs and man-
ages utilities would not be considered involved in a real estate transaction, but if that “superintendent” negotiated leases or collects rent, then that person would be consid- ered as engaging in a real estate transaction, and would have to be licensed by the ap- propriate State Agency. According to New Jersey statute (N.J.S.A. 45:15-1) no person shall engage either directly or indirectly in the business of a real estate broker, broker-salesperson, salesper- son or referral agent, temporar- ily or otherwise, and no person
shall advertise or represent himself as being authorized to act as a real estate broker, bro- kersalesperson, salesperson or referral agent, or to engage in any of the activities described in R.S.45:15-3, without being licensed so to do as hereinafter provided. As defined by N.J.S.A. 45:15- 2 "Engaging in business" is any single act, transaction or sale shall constitute engaging in business within the meaning of this article. The difference between a “broker” “salesperson” “broker- salesperson” or “referral agent”
(this would include pre- p a r i n g o r placing ad- vertisements – offering or attempting to offer real es- tate or an in- terest therein
Mahlon Fast
or soliciting/assisting or direct- ing in the procuring of pros- pects) negotiating or signing a lease, collecting or attempting to collect rent, and negotiating
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