New Jersey Real Estate Exam Practice Question
Broker P is the sole proprietor of XYZ Realty. P employs five salespersons, all of whom have been practicing real estate for at least two years. Under the license law, if P should die, which of the following actions can be taken?
Correct Answer: D
Rationale: Option D is accurate because a salesperson with at least three years of experience can apply for a temporary broker's license, allowing continuity in the firm's operations after the broker's death. This provision ensures that business can continue smoothly while a permanent replacement is found.
Option A is incorrect as not all sales contracts become null and void; pending transactions can still be managed under certain conditions.
Option B is misleading because the Real Estate Commission does not typically appoint brokers from other firms to conclude pending business; this responsibility usually falls to the firm's licensed personnel.
Option C is inaccurate since a salesperson cannot act as a broker without proper licensure, even temporarily, unless they hold a broker's license or obtain a temporary one.
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