A broker who charges or collects an advance fee in excess of $25 for services to be rendered MUST:

Question

Certilyst · Accepted Answer

C Rationale: A broker who charges or collects an advance fee in excess of $25 for services to be rendered must furnish within ninety days of its collection an accounting of how the money was used. This requirement ensures transparency and accountability in the handling of client funds.

Choice A is incorrect because deducting the amount from the commission or settlement does not fulfill the obligation to account for the advance fee collected.

Choice B is wrong as providing receipts for all expenditures, while a good practice, does not specifically address the requirement to furnish an accounting within ninety days.

Choice D is also incorrect since retaining the difference between the collected amount and the spent amount does not meet the legal requirement for proper accounting and reporting of the advance fee.

New Jersey Real Estate Broker Practice Exam

A broker who charges or collects an advance fee in excess of $25 for services to be rendered MUST: