N.J.A.C. 11:5-2.2 — Licensed schools and instructors; requirements

(a) This section is applicable to those licensed as a school or instructor offering prelicensure education courses pursuant to N.J.S.A. 45:15-10.4 and 10.5, and when applicable, to a school or instructor licensed to offer continuing education courses pursuant to N.J.A.C. 11:5-12.1. 1. The renewal term for school and instructor licenses shall run for a two-year period, from March 1 to the last day of February of the odd year. (b) A school or instructor applicant shall submit certain documents, which shall be used to determine whether to grant a license. Where the Commission initially denies an application for licensure, it shall provide notice, in writing, with reasons for such action. The applicant may appeal the decision to the Commission and N.J.A.C. 11:5-11.10 shall be applicable to all such appeals. (c) Public adult education programs and accredited colleges or universities shall be presumed to be qualified, so long as their prelicensure education program is under the direction of a licensed instructor or other qualified individual who has affirmatively demonstrated to the Commission their good moral character and meets the other requirements at N.J.S.A. 45:15-10.9. (d) Except as provided at (c) above, an applicant for a license to operate a prelicensure school, and in the case of a corporation, or limited or general partnership, the members, officers, directors, and owners of a controlling interest thereof, shall demonstrate their good moral character, including the absence of any conviction for the crimes or like offenses specified at N.J.S.A. 45:15-12.1 and 45:1-21.5. The Commission may make such further investigation and require such proof as it deems proper as to the honesty, trustworthiness, character, and integrity of an applicant. (e) When a school is to be conducted in the name of a corporation, a certified copy of its certificate of incorporation shall accompany the application for licensure. When a school is to be conducted under a trade name, whether a sole proprietorship, firm, general partnership, or limited partnership, a true copy of the certificate of trade name or articles of the general or limited partnership as filed in the office of the county clerk shall accompany the application. A school shall not use the designation of "College" or "University," as part of its name or in any other manner, unless it, in fact, has been approved by the appropriate State agency. (f) A school licensed by the Commission shall have a main location that contains its administrative offices, its records and a telephone number for the school's exclusive use. 1. A school may designate a physical location where classes are taught. These locations shall have adequate space, seating, equipment, and instructional materials. The premises, equipment and facilities shall comply with all local, city, county, and State regulations, such as fire codes, building and sanitation codes. A certificate from a proper authority evidencing compliance with these requirements shall accompany an application for school licensure. The Commission may require proof of ownership or a copy of the lease. Public adult education programs and accredited colleges or universities, the facilities of which have been approved by a State agency, shall be presumed to have met the requirements of this paragraph, so long as the real estate courses offered are held at the approved facility. 2. Additional teaching locations must be licensed by the Commission and comply with the requirements applicable to licensed schools. School directors shall have oversight responsibility for these locations. Any courses conducted at such locations must be taught by licensed instructors, guest lecturers, or individuals approved as continuing education instructors pursuant to N.J.A.C. 11:5-12.10, as applicable. (g) A school must submit their policy pertaining to standards for satisfactory course completion, the issuance of the Course Completion Certificate, conditions for dismissal of a student and conditions for refunds, and the final examination policy with their application. A school offering courses by online instruction must provide their policy on technical support availability for students and how students access these resources. 1. Any changes in school policy submitted, as set forth at (g) above, shall be disclosed to the Commission within 10 business days, in writing, or on a form that the Commission prescribes. (h) A school license shall be limited to the specific ownership and teaching locations identified on the license document(s). (i) An applicant for director of a school administered by a public adult education program or an accredited college or university who is not licensed as an instructor must be at least 18 years of age; demonstrates good moral character, including the absence of any conviction for the crimes or other offenses specified at N.J.S.A. 45:15-12.1 and 45:1-21.5; and satisfies the education requirements for licensure as an instructor within two years of their application. (j) Every six months, the director shall submit data on courses to be offered by their school in the forthcoming six-month period, the starting and ending dates of the courses, the days and hours of class sessions, and teaching locations. Such information shall be provided on forms prescribed by the Commission and be retained for not less than three years after submission. (k) No person, other than a guest lecturer, shall teach prelicensure courses that fulfill the education requirements set forth at N.J.S.A. 45:15-10.1, unless that person is licensed as an instructor pursuant to N.J.S.A. 45:15-10.5 and this section. 1. An applicant must be at least 18 years of age and demonstrate that they possess good moral character, including the absence of any conviction for those certain crimes or like offenses specified at N.J.S.A. 45:15-12.1 and 45:1-21.5. A non-attorney applicant must submit a Request for Criminal History Record Information Form to the New Jersey State Police as the processing fee for such forms. 2. An applicant must hold a bachelor's degree from an accredited college or university, except for the following: i. New Jersey licensed brokers who have been continuously licensed as such for the two years immediately preceding their application; and ii. Licensed brokers from other states who have been continuously licensed as such for the three years immediately preceding their application. 3. An applicant must satisfy the education requirements at N.J.A.C. 11:5-2.1(g), not more than one year prior to passing the instructor license examination and submitting their application, except for the following: i. New Jersey broker licensees who have been licensed as such for the two years immediately preceding the application, who have completed the full 150 hours of broker prelicensure courses established at N.J.A.C. 11:5-2.1 shall be deemed to have fulfilled the education requirements. ii. The following applicants will not be required to complete the 90-hour general course at N.J.A.C. 11:5-2.1(g)1, but must successfully complete the two 30-hour courses set forth at N.J.A.C. 11:5-2.1(g)6 and 7 to fulfill instructor education requirements: (1) New Jersey broker licensees who have been licensed as such for the two years immediately preceding their application but who have not previously completed those two courses; and (2) Licensed brokers from other states who have been licensed as such for the three years immediately preceding application. 4. Applicants shall successfully complete an instructor license examination, which shall test the applicant's general real estate knowledge and include questions on teaching methods. Applicants are advised to engage in independent study and/or take courses offered by independent providers on teaching methods. 5. Subsequent to passing the instructor license examination, as a prerequisite to being issued an instructor license, all applicants must attend a seminar conducted by or under the direction of the Commission staff covering the Commission and licensing procedures. Such seminars shall not exceed one day in length. (l) Regulations applicable to the renewal of school and instructor licenses are as follows: 1. The fee to renew an instructor license shall be $ 100.00. The fee to renew a school license shall be $ 400.00 for the main office location and one teaching location. The fee of $ 200.00 shall be imposed for each additional licensed teaching location to be renewed. 2. To renew an instructor license, an instructor must attend a Commission-sponsored seminar on updated real estate brokerage business practices in New Jersey. Such seminars shall be offered on a minimum of two dates, each in a different location throughout the State, during the second year of each two-year license term. Instructors initially licensed in the last six months of the two-year license term are exempt from the seminar attendance requirement for the first renewal term. 3. If an instructor fails to renew their license for more than two years following the expiration of their license, the instructor will need to reapply for licensure and meet the requirements set forth at (k) above. If an instructor allowed their license to lapse beyond two years of expiration due to employment in a public agency in this State relating to real estate, the instructor must apply for renewal within one year of termination of that employment. (m) Courses delivered in-person or through live-remote instruction shall have a maximum ratio of one instructor or guest lecturer to 60 students per class. All courses shall be under the supervision of an instructor licensed pursuant to N.J.S.A. 45:15-10.5 and (k) above. At least one licensed instructor shall be present in the classroom at all sessions. At the discretion of the instructor, guest lecturers may provide course instruction, which cannot exceed more than 25 percent of the required material. Courses offered to satisfy the broker education requirement may be taught by up to three instructors, provided that one licensed instructor is designated as a supervising instructor. Directors shall maintain the names of any guest lecturers or group of instructors, with an indication of the designated noting the supervising instructor, at their main office. (n) The tuition charged by a school shall be specified separately from any fees charged for supplies, materials, or books needed to complete a course. These fees shall be itemized by the school prior to the payment, and such items shall become the property of the student upon payment. (o) Tuition and fees shall be set forth in a student contract and expressly state the school policy regarding the return of unearned tuition when a student is dismissed or withdraws voluntarily. (p) A student who has a permanent disability or physical handicap that precludes them from receiving instruction offered by a licensed school may request Commission approval to receive appropriate instruction through a licensed school provided that this request is supported by sworn statements of doctors or other persons having knowledge of the facts and provided a licensed school is willing to undertake such an agreement. (q) A school shall not accept a student concurrently enrolled at another licensed school without the student submitting written approval from the Commission upon a showing of good cause. (r) A school offering continuing education courses shall maintain records of student attendance as prescribed at N.J.A.C. 11:5-12.8. A school shall establish and maintain for each student enrolled in a prelicensure education course, complete, accurate, and detailed records for not less than three years after student matriculation. Such records shall be available for inspection within 48 hours of a request made by the Commission and shall contain the following information: 1. The total hours of instruction undertaken by the student; 2. Completed areas of study in real estate subjects prescribed by the Act and these regulations; 3. The student's attendance record; and 4. The names of all supervising instructors and guest lecturers. (s) To receive credit for a course, the student must receive a passing grade and attend at least 80 percent of the class instruction as set forth at N.J.A.C. 11:5-2.1. (t) Upon the satisfactory completion of a prelicensure course, the school shall issue, to the student, a Course Completion Certificate. (u) The director of a school shall be responsible for properly closing the school as follows: 1. Within 10 days of a school closure, the director shall return the school stamp, if applicable, and shall advise the Commission, in writing, the date on which the school closed. 2. Within 30 days of the school closure, the director shall submit an affidavit to the Commission certifying the following: i. The location where student records are to be kept in compliance with (r) above and the individual named custodian of the record. The Commission shall be notified immediately of any change in such information; ii. The name of the owner or authorized representative of the school and the address and phone number where they may be contacted; iii. If applicable, that the school stamp has been returned to the Commission; iv. All students have been timely notified of the closure and that tuition received for courses that were not completed has been returned; v. All signs have been removed and all advertisements and trade materials referring to the school have been recalled; vi. The appropriate telephone services have been notified that the school is closed and that future telephone directories should not contain the name of the school; and vii. There are no outstanding fees, fines, or penalties due by the school to the Commission. (v) A school shall not use any name other than the name appearing on their license for advertising purposes; nor shall a school advertise or imply that it is "recommended," "endorsed," "accredited," or "approved" by the Commission. A school may indicate that it has been "licensed" to conduct courses to qualify candidates for the State licensing examination. A school shall not make any warranties or guarantees that a student will pass the license examination as a result of taking its course. (w) (Reserved) (x) There shall be total separation between instructional activity conducted by a school and solicitation of students to become salespersons for a particular broker, as defined at (x)2ii below. A violation of this provision will be considered conduct demonstrating unworthiness for licensure, subjecting the offending licensee to sanctions pursuant to N.J.S.A. 45:15-17.e and t. The involvement of a school in permitting the solicitation of students to become salespersons for particular real estate brokers is limited as follows: 1. At the beginning of the first class of a salesperson prelicensure course, all schools shall distribute to students the following notice. If a student does not receive the notice at the start of a prelicensure course, the notice shall be provided as soon as possible. NOTICE TO: ALL SALESPERSON/REFERRAL AGENT COURSE STUDENTS FROM: NEW JERSEY REAL ESTATE COMMISSION RE: SOLICITATION OF SALESPERSON CANDIDATES AT PRELICENSURE SCHOOLS It is the policy of the New Jersey Real Estate Commission that there be a complete and total separation between the instruction you receive in your prelicensure education course and any efforts by brokers to recruit you to join their firm and/or to secure listings or offers on listed properties from you. If you are subjected to any recruitment efforts or are solicited for listings or offers during class time you should immediately notify your instructor, the Director of your school, and the New Jersey Real Estate Commission at realestate@dobi.nj.gov or by writing to: New Jersey Real Estate Commission 20 West State Street PO Box 328 Trenton, New Jersey 08625-0328 Attn: Education Bureau You are free to negotiate the terms of your business relationship with any broker. It is in your own best interest to talk to several prospective brokers to determine which offers the best fit for you. You should consider the type of business relationship (including employment and independent contractor relationships) offered by various brokers as well as the compensation plan, including post-termination payment provisions, and support package. You should also consider a prospective employer's professionalism and reputation for honesty and integrity when deciding which broker to work for. 2. For the purposes of this subsection, the following definitions shall apply: i. "Solicit" means to recruit, invite, or urge a student to seek employment with a particular broker, or to list, purchase, or lease through, or to make referrals of listing, purchaser, or lessee prospects to a particular broker; and ii. "Successful completion" means the receipt by the student of a Certificate of Completion, duly signed by the instructor and the director and stamped by the school, certifying that the student has completed and passed a prelicensure course. 3. A director, instructor, guest lecturer, or staff member shall not, prior to, or within seven days following a student's successful completion of a course, solicit a student to become a salesperson for a particular broker. Nor shall any such person, at any time, accept any fee or other compensation or valuable consideration for soliciting or recruiting students attending their school to apply for employment with a particular broker. 4. A school is prohibited from soliciting students to apply for employment as salespersons with a particular broker at a licensed school location during course instruction, including breaks. Such soliciting may be made before, after, or separate from course instruction hours, for example at a "career night"; provided that students are notified, in writing, in advance that attendance at such recruitment functions is voluntary. Licensed instructors who are also licensed brokers may appear as guest lecturers in such courses, so long as their presentations do not include the solicitation of students. 5. A school that elects to permit the posting, distribution, or displaying of written material to solicit students to inquire about employment as a salesperson must permit the posting, distribution, or displaying of such material from any broker who requests to do so. No solicitation materials may be distributed to students during course instruction. 6. A school may not offer a reduced tuition rate to students contingent upon a student making a commitment to becoming licensed through a particular broker subsequent to their qualifying for licensure and a school may not make or imply any promise or guarantee of employment to any student. 7. No oral or written statements referring to a school may be included in any advertisement by a licensee, and no advertisement of a school may refer to the brokerage operation or include the telephone number of any licensee, unless that school which is owned by a licensee or franchisor whose name is part of the school name. i. Any advertisement by a school whose name includes the name of an affiliated licensed broker or franchisor shall include the following disclosure: "Attending this school will not obligate you to become employed with our affiliated real estate broker(s), nor guarantee you an interview or a job with our affiliated real estate broker(s)." 8. A brokerage may share a building with a school only if the school can conduct course instruction in an area free of brokerage activity and where students do not have to walk through brokerage activity to access the classroom, which shall be accessible by a separate entrance or shared lobby. 9. A school shall not allow any person to solicit students enrolled in, or considering enrolling in, a prelicensure or continuing education course to list, purchase, or lease any property; or for referrals of prospective sellers, purchasers, or lessees any time students are on the premises. (y) A school providing continuing education courses shall comply with all requirements imposed upon the providers of such courses set forth at N.J.A.C. 11:5-12.