REAL ESTATE COMMISSION 11:5-6.4
4. All leases prepared by licensees for a term of one year or more for residential dwelling units in transactions in which they have a commission or fee interest shall, at the top of the first page and in print larger than the predominant size print of the writing, contain the following language:
THIS IS A LEGALLY BINDING LEASE THAT WILL BECOME FINAL WITHIN THREE BUSINESS DAYS. DURING THIS PERIOD YOU MAY CHOOSE TO CONSULT AN ATTORNEY WHO CAN REVIEW AND CANCEL THE LEASE. SEE SECTION ON ATTORNEY REVIEW FOR DETAILS.
5. The lease shall also contain the following language within the text of every such lease.
ATTORNEY REVIEW:
1. Study by Attorney
The Tenant or the Landlord may choose to have an attorney study this lease. If an attorney is consulted, the attorney must complete his or her review of the lease within a three-day period. This lease will be legally binding at the end of this three- day period unless an attorney for the Tenant or the Landlord reviews and disapproves of the lease.
2. Counting the Time
You count the three days from the date of delivery of the signed lease to the Tenant and the Landlord. You do not count Saturdays, Sundays or legal holidays. The Tenant and the Landlord may agree in writing to extend the three-day period for attorney review.
3. Notice of Disapproval
If an attorney for the Tenant or the Landlord reviews and disapproves of this lease, the attorney must notify the Broker(s) and the other party named in the lease within the three-day period. Otherwise this lease will be legally binding as written. The attorney must send the notice of disapproval to the Broker(s) by certified mail, by telegram, or by delivering it personally. The telegram or certified letter will be effective upon sending. The personal delivery will be effective upon delivery to the Broker’s office. The attorney may but need not also inform the Broker(s) of any suggested revisions in the lease that would make it satisfactory.
6. The lease shall also contain the names and full addresses of all persons to whom a Notice of Disapproval must be sent in order to be effective, as provided in item three of the Attorney Review Provision.
7. The failure of any licensee to include such language in any such contract of sale or lease agreement prepared by the licensee shall be construed by the Commission as engaging in the unauthorized practice of law and shall be considered by the Commission as conduct which demonstrates the licensee’s
unworthiness and incompetency, thereby subjecting the licensee to sanctions pursuant to N.J.S.A. 45:15-17(e).
Amended by R.1977 d.84, effective March 10, 1977. See: 9 N.J.R. 91(d), 9 N.J.R. 178(a). Amended by R.1977 d.391, effective October 19, 1977. See: 9 N.J.R. 344(a), 9 N.J.R. 536(a). Amended by R 1979 d.461, effective November 26, 1979. See: 10 N.J.R. 499(a), 12 N.J.R. 44(b). Amended by R.1980 d.51, effective January 31, 1980. See: 12 N.J.R. 127(e). Amended by R1980 d.214, effective May 14, 1980. See: 12 N.J.R. 342(d). Amended by R.1980 d.274, effective June 19, 1980. See: 12 N.J.R. 423(d). Amended by R.1980 d.408, effective September 23, 1980. See: 12 N.J.R. 340(b), 12 N.J.R. 665(c). (c) substantially amended. Amended by R.1980 d.409, effective September 24, 1980. See: 12 N.J.R. 665(d). (c) compliance date amended from November 1, 1981 to January 2, 1981. Amended by R.1983 d.471, effective November 7, 1983. See: 15 N.J.R. 1343(a), 15 N.J.R. 1865(c). Time limits on compliance deleted. Amended by R.1987 d 159, effective April 6, 1987. See: 18 N.J.R. 1677(a), 18 N.J.R. 2112(a), 19 N.J.R. 551(a). Added (g). Amended by R.1987 d.359, effective September 8, 1987. See: 19 N.J.R. 503(b), 19 N.J.R. 1646(a). Added (h) “Agreement to Honor”. Invalidity Annotation N.J.A.C. 11:5-1.16(h) held invalid as an intrusion upon the State Supreme Court’s constitutional authority to regulate the practice of law. Cannagnola v. Hann, 233 N.J. Super. 547 (App. Div. June 12, 1989), 559 A.2d 478. Amended by R.1989 d.539, effective October 16, 1989. See: 21 N.J.R. 2438(b), 21 N.J.R. 3299(a). Subsection (h) deleted due to Appellate Court decision … N.J.Super…., Dkt. No. A-2211-88T2F (App.Div.1989). Amended by R 1993 d 10, effective January 4, 1993. See: 24 N.J.R. 3485(a), 25 N.J.R. 179(a). Text at (a) substantially amended to specify licensees’ obligations to parties in a real estate transaction involving offers or counter-offers. Petition for Rulemaking. See: 25 N.J.R. 4523(c), 26 N.J.R. 505(b). Petition for Rulemaking. See: 32 N.J.R. 850(a), 32 N.J.R. 1085(b). Petition for Rulemaking. See: 40 N.J.R. 3758(b), 40 N.J.R 4361(a).
11:5-6.3 Broker insurance placement provision
Where a contract provided by a real estate broker contains a provision to the effect that such broker, in his capacity as a licensed insurance agent or broker, is authorized to place or procure insurance on the property being sold, the licensee benefitting by such a provision shall obtain separate written reaffirmation of such provision by the prospective insured not less than five days prior to the closing of title.
11:5-6.4 Obligations of licensees to public and to each other
(a) All licensees are subject to and shall strictly comply with the laws of agency and the principles governing fiduciary relationships. In accepting employment as an agent, the licensee pledges himself to protect and promote, as he would his own, the interests of the client or principal he has undertaken to represent;