NJ Real Estate key terms

New Jersey statute (N.J.S.A. 45:15-1 and following) that sets licensing requirements for brokers and salespersons, lists prohibited conduct, and gives the Real Estate Commission power to regulate and discipline licensees.

The state agency within the Division of Consumer Affairs that licenses real estate brokers and salespersons, adopts regulations, investigates complaints against licensees, and may fine, suspend, or revoke licenses.

A person licensed by the Commission to perform brokerage activities only while associated with and supervised by a licensed broker, through whom the salesperson is paid compensation.

The licensed broker a brokerage designates as responsible for office operations, including supervising licensees, reviewing transaction documents, handling escrow funds, and keeping records that comply with Commission rules.

A separate bank account, maintained by a broker, that holds client money such as earnest money deposits; funds are kept apart from the broker's own money and paid out only as authorized.

A relationship in which a licensee represents a principal and owes that principal fiduciary duties; in New Jersey it is normally created by a written agreement and disclosed to the other parties.

A New Jersey form explaining agency and business relationships that a licensee must deliver at the first substantive contact with a consumer in a residential transaction, before confidential information is shared.

A broker who represents both the buyer and the seller in the same transaction after both give written informed consent, and who must stay neutral rather than advocate for either side.

The legal obligations an agent owes a principal, generally including care, obedience, loyalty, disclosure, accounting, and confidentiality; New Jersey regulations spell out these duties for licensees.

The obligation to tell the principal every material fact the agent knows that bears on the transaction, such as offers received or known property defects, while not revealing the principal's confidences to others.

The duty to keep a principal's private information, such as financial situation, motivation to sell, or willingness to accept a lower price, from being shared with the other party or the public.

Information that could reasonably affect a person's decision to buy, sell, or lease, including known physical defects, zoning problems, pending litigation, or neighborhood conditions affecting the property.

A licensee who represents a purchaser under a written agreement, owes that buyer fiduciary duties, and must disclose the representation to the seller or the seller's agent.

The written agreement in which a seller promises to convey title and a buyer promises to pay the purchase price, stating terms, contingencies, closing date, and what personal property is included.

A New Jersey contract provision giving buyer and seller three business days after delivery of a broker-prepared residential contract to have attorneys review it and disapprove it before it becomes binding.

Money a buyer pays when signing the contract to show good faith, usually held in escrow and credited toward the purchase price at closing if the sale goes forward.

A contract clause making the buyer's duty to close depend on obtaining a loan at stated terms within a set period, so the deposit is protected if financing is refused.

A New Jersey form on which a seller of residential property must disclose known defects and conditions to a buyer before the buyer signs the contract of sale.

The settlement meeting where the buyer pays the remaining price, the seller delivers the deed, title passes, and costs, adjustments, and recording are completed.

Dividing continuing expenses such as property taxes, rent, or association assessments between buyer and seller at closing according to how many days each party owns the property.

A New Jersey fee based on the sale price, normally paid by the seller when the deed is recorded, with reduced rates available to qualifying senior, blind, or disabled sellers.

The fullest ownership interest in real property, lasting indefinitely, freely transferable and inheritable, subject only to government powers and private restrictions such as easements.

Co-ownership in which each owner holds a distinct, transferable share with no right of survivorship, so a deceased owner's share passes to that owner's heirs or beneficiaries.

Co-ownership with equal shares and the right of survivorship, so when one owner dies the interest passes automatically to the surviving owners instead of through the estate.

A form of co-ownership for married couples in New Jersey that carries the right of survivorship and generally cannot be ended by one spouse acting alone.

Ownership of an individual unit plus an undivided share of common elements, governed by a master deed, bylaws, and an association that collects assessments for shared expenses.

A written instrument that transfers an interest in real property from a grantor to a grantee; it must be delivered and should be recorded to give public notice.

A right to use another person's land for a specific purpose, such as access or utility lines; it runs with the land and burdens the parcel it crosses.

A claim against property that must be satisfied before title is clear, such as a mortgage, tax lien, or judgment; liens can be voluntary or involuntary.

A local law that divides a municipality into districts and regulates allowed uses, lot size, density, height, and setbacks; exceptions require variances or other board approval.

Permission from a local zoning board allowing an owner to depart from a zoning rule because of hardship or special site conditions, such as a setback or lot-area shortfall.

The loan amount divided by the property's price or appraised value, shown as a percentage; a higher ratio generally means more risk, mortgage insurance, and a higher rate.

The process of repaying a loan through scheduled payments that cover interest and principal, with the principal portion growing over time as the balance declines.

The four parts of a typical monthly housing payment: principal, interest, property taxes, and homeowners insurance; lenders compare it to income to judge affordability.

Insurance that protects the lender if a borrower defaults, usually required when the loan-to-value ratio exceeds 80 percent and typically cancellable once equity grows.

A mortgage insured by the Federal Housing Administration that permits smaller down payments and more flexible credit standards, and carries mortgage insurance premiums.

A mortgage guaranteed by the Department of Veterans Affairs for eligible veterans, service members, and certain spouses, often requiring no down payment and no monthly mortgage insurance.

An opinion of market value prepared by a state-licensed appraiser, using comparable sales and other data; lenders require it to confirm the property supports the loan.

A licensee's estimate of a property's likely selling price based on recent comparable sales and active listings; it is not an appraisal and cannot substitute for one in lending.

The most probable price a property should bring in a fair sale between a willing buyer and seller, both well informed and neither under unusual pressure.