N.J.A.C. 11:5-3.9 — Office closing; change of broker of record

(a) A broker who ceases to be active shall within five business days of the cessation of business terminate the licenses of salespersons and broker-salespersons in their employ through the online licensing system on the Commission's website. (b) Each salesperson and broker-salesperson whose license has been terminated must be notified, in writing, in compliance with N.J.S.A. 45:15-14. (c) A broker engaging in the brokerage business as a sole proprietor or as a broker of record of a partnership, a corporation, or other business entity shall within 30 days of ceasing to engage in the brokerage business submit an office closing affidavit that includes the statements at (c)1 through 9 below. A broker shall not be relicensed by the Commission unless the office closing affidavit is filed as provided for in this section. 1. All licenses affiliated with the office have been terminated; 2. The trust account has been closed and funds have been disbursed to proper parties; 3. Commissions and other compensation owed to salespersons and broker-salespersons have been paid, or, if not yet received by the broker, will be paid upon receipt; 4. No further commissions are due the broker, except for services previously rendered and payable in the future upon the occurrence of specified events, itemized on a list attached to the affidavit, which shall include the nature and amounts of outstanding commissions with sufficient information to identify each transaction; 5. The principals in ongoing transactions have been notified that the broker has ceased engaging in the brokerage business or that the broker will hereinafter engage in the brokerage business in another capacity. The notice shall describe the disposition of pending transactions, name of the custodian, and place of deposit of any funds received from principals; 6. The broker has removed all signage from the premises indicating that it contains the office of a licensed broker; 7. The broker has recalled all physical and electronic advertisements from trade publications and multiple listing services; 8. There are no outstanding fines or penalties due to the Commission; and 9. The broker acknowledges their responsibility to maintain records pursuant to N.J.A.C. 11:5-5.4. The broker shall provide the address where such records will be maintained and their responsibility to advise the Commission of any change in the name of the custodian or place of depository for six years. (d) When a new broker of record of a corporation, partnership, or other business entity is being substituted for an existing broker of record, the existing broker of record shall satisfy the certification requirements at (c) above and the substitution procedures at (e) below. (e) A new broker of record of a corporation, partnership, or other business entity shall not be substituted until the new and former brokers of record prepare and submit a joint affidavit certifying that: 1. Custody of funds held in trust have been assumed by the new broker of record; 2. The new broker of record has reviewed pending transactions and is satisfied that all funds held in trust have been accounted for; 3. All salespersons' and broker-salespersons' commissions and other compensation are paid to date; 4. The new broker of record acknowledges responsibility to pay salespersons' and broker-salespersons' commissions in accordance with the policy for payment existing on the date of substitution; 5. No fines are presently owed to the Commission, and if any fines are assessed after the date of substitution for actions occurring prior to substitution, both the former broker and new broker of record are jointly and severally responsible for payment; 6. All signs and advertisements have been changed to reflect the broker of record now authorized to transact business in the name of the firm; 7. All records required to be maintained pursuant to N.J.A.C. 11:5-5.4 have been turned over to the new broker of record, and the new broker of record acknowledges responsibility to maintain such records for six years; and 8. The new broker of record acknowledges that they will be responsible to transact business in the name and on behalf of the firm.