Broker Supervision and the Office of Record
The New Jersey broker exam tests the supervisory responsibilities that separate a broker from a salesperson, including maintaining a main office and supervising affiliated licensees. This chapter covers the broker-of-record duties and office requirements.
Broker of Record and Main Office
Every New Jersey brokerage must have a broker of record who is responsible for the firm's licensed activity and its escrow accounts, and the firm must maintain a main office where records are kept. The broker of record is accountable to the Commission for the conduct of the office and its affiliated licensees, which is why the credential requires added experience and education.
Supervision of Affiliated Licensees
The broker must supervise the licensed activity of salespersons and broker-salespersons affiliated with the firm, including their advertising, disclosures, and handling of client money. All licensed activity is conducted in the name of the broker. Failure to supervise adequately can result in discipline against the broker even when the underlying error was made by an affiliated licensee.
Advertising and Records
Advertising must be done in the name of the brokerage and must not be misleading. The broker is responsible for ensuring that affiliated licensees advertise properly and that transaction and trust records are maintained and retained as required. Consistent office policy on advertising, disclosure, and escrow protects both consumers and the firm.