New Jersey Real Estate Practice Exam Free Practice Question
A broker who charges or collects an advance fee in excess of $25 for services to be rendered MUST:
Correct Answer: C
Rationale: A broker charging an advance fee over $25 is required to provide an accounting of how the funds were used within ninety days. This ensures transparency and accountability to the client.
Option A is incorrect; while commissions may be deducted, it does not specifically address the requirement for advance fees.
Option B, providing receipts for expenditures, is not mandated and does not fulfill the specific requirement for accounting.
Option D is misleading, as retaining any difference is not a standard practice and does not align with the obligation to report on fund usage.
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