Important NJAR Alerts

This month we feature some recent and important NJAR alerts you may have missed.

CONTINUING EDUCATION FOR REAL ESTATE LICENSEES RECEIVES FINAL LEGISLATIVE APPROVAL

On January 7, 2010, the New Jersey Senate approved A-3099/S-2068, which provides for mandatory continuing education (CE) for real estate brokers, broker-salespersons and salespersons. The final passage of this bill in the Legislature represents two years of work by NJAR® and the NJAR® CE Task Force.

A-2099/S-2068 states that no more than 16 CE hours will be required as a condition of license renewal. The measure provides that, upon the approval of an appointed advisory panel, DE courses may be delivered in a classroom setting or via the Internet, distance learning, correspondence or video. The bill also allows CE credits received in other states for “elective courses” to be counted towards a licensee’s CE requirements with proof of completion and prior approval by the advisory committee. In addition, the bill creates a new licensing category for referral agents, who will not be subject to CE requirements as long as the licensee stays within the referral category.

The Governor must sign A-3009/S-2068 before it can become law.

LEGISLATION PERMITTING REBATES APPROVED BY STATE SENATE

At its January 7, 2010 meeting, the New Jersey Senate approved A-373, which permits rebates to be provided to consumers in real estate transactions. After several years of working with the sponsors of this bill, NJAR® secured amendments stating that only brokers can offer rebates to those purchasing property, rather than allowing all real estate licensees to offer rebates to buyers and sellers, as the original version of the bill would have allowed. In addition, the amendments provide greater consumer protections, including mandating that rebates can only be in the form of a credit or check and requiring that rebates be documented in a contract at the beginning of a brokerage relationship in a written or electronic form or in a buyer agency agreement.

Under current state law, New Jersey real estate licensees are not permitted to offer rebates. Before becoming law, this bill must be signed by the Governor.

NEW DAY, NEW OPPORTUNITIES

The first-time home buyer tax credit has been extended from its original November 30, 2009 deadline, and it now provides an incredible incentive for existing owners too.

New and repeat buyers can take advantage, as long as they act before April 30, 2010.

Some more details:

• “First-time home buyers” are defined as buyers who have not owned a principal residence during the three-year period prior to the purchase. So if you’ve owned before, but don’t now, you could still be eligible for up to $8,000.
• Existing homeowners who have owned their home for five consecutive years out of the last eight are eligible for a tax credit of up to $6,500 ($3,200 for those who are filing separately).
• The income limits to qualify for the full credit are $125,000 for a single person and $225,000 for a married couple. Individuals earning up to $145,000 and married couples earning up to $245,000 are eligible for partial credit.
• In order to qualify, you must have a written, binding contract in place before April 30, 2010, and close the transaction before June 30, 2010. There is a maximum sale price of $800,000.

We would be pleased to provide you with a copy of NJAR’s® Q&A for your use. Please email lsacalis@barpostlaw.com with your request.

***The information included in this newsletter is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.