New Jersey Real Estate Practice Exam Free Practice Question
According to the New Jersey Real Estate License Law, which of the following statements is CORRECT concerning the terms of an employment agreement?
Correct Answer: A
Rationale: Option A is correct as it aligns with New Jersey Real Estate License Law, which mandates that a written agreement between the broker and salesperson is necessary before the salesperson can act on behalf of the broker.
Option B is incorrect; while errors and omissions insurance is important for salespersons, it is not a prerequisite for beginning work under a broker.
Option C is misleading; the law does not impose a strict one-year limit on employment contracts, allowing for flexibility in agreement durations.
Option D is also incorrect, as the law does not require an agreement to stipulate commission payments for listings sold after termination; this is typically a matter of negotiation and not a legal requirement.
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