Current through Register Vol. 54, No. 7, April 4, 2022
Whenever a real
estate licensee refers a buyer/borrower to a mortgage lender or mortgage broker
with whom the licensee is affiliated, the licensee must provide written
disclosure of the affiliation to the buyer. This disclosure must be made even
though the licensee will receive no fees or compensation for the referral, see
, and even though the
licensee also refers the buyer to other, unaffiliated sources of mortgage
financing. The disclosure must include the following statement:
YOU ARE UNDER NO OBLIGATION TO USE THE MORTGAGE SERVICES OF
____________ WHO/WHICH IS AFFILIATED WITH THIS REAL ESTATE LICENSEE. YOU MAY
OBTAIN YOUR MORTGAGE LOAN FROM ANOTHER SOURCE.
For the purposes of this rule, a real
estate licensee is considered to be affiliated with a mortgage lender or
mortgage broker when:
1. The licensee, or the
licensee's spouse, parent or child, is an officer, director or employee of the
lender or mortgage broker, or works as a solicitor for the lender or mortgage
2. The licensee, either
alone or with spouse, parent or child, owns more than one percent of the lender
or mortgage broker; the licensee is more than one percent owned by the lender
or mortgage broker; or the licensee owns more than one percent or is more than
one percent owned by a corporate parent, holding company or other business
entity which is a majority shareholder in the lender or mortgage
3. The licensee is a
franchisee of a franchiser which owns more than one percent of the lender or
mortgage broker or the licensee itself is the franchiser or franchisee of a
mortgage lending franchise; or
The licensee shares office space or other facilities, or staff, with the lender
or mortgage broker.
Where an employing broker or broker of record of a real estate agency has an
individual or corporate affiliation with a lender or mortgage broker, all
licensees licensed with that real estate broker must provide the required
disclosures to buyers referred to the affiliate.
1. Where an office manager has such an
individual affiliation, the manager and all licensees working under his or her
supervision must provide the disclosure to all buyers referred to the affiliate
by that office.
2. Where a referral
agent, a salesperson or a broker-salesperson has such an individual
affiliation, he or she must provide the disclosure to all buyers he or she
refers to the affiliate.
The disclosure required by this section
may be combined with the disclosure of affiliation required under RESPA,
12 U.S.C. §§
et seq. Copies of all written
disclosures required by this rule must be retained by the broker as business
records available for inspection pursuant to
N.J. Admin. Code §
New Rule, R.1992 d.232,
See: 23 N.J.R. 3424(b), 24 N.J.R. 2058(b).
Amended by R.1998
d.497, effective 10/5/1998.
See: 30 N.J.R. 2333(a), 30 N.J.R. 3646(a).
In (a) and
(d), changed N.J.A.C. references; and in (a), deleted a reference to stylistic
requirements in the introductory paragraph.
Amended by R.2012
d.006, effective 1/3/2012.
See: 43 N.J.R. 1791(a), 44 N.J.R. 86(b).
inserted "referral agent, a" and inserted "a" preceding "broker-salesperson".