According to the New Jersey Real Estate Commission rules, a broker who collects an advance fee, particularly for advertising or promotional costs, must provide the principal with a complete accounting of how the funds were utilized. This accounting is legally mandated to be furnished within 90 days of the collection of the fee. Furthermore, for any advance fee exceeding $25, the broker must provide the principal with a written contract specifying the services to be rendered and the fee amount.

A. This is a matter of contractual agreement between the broker and principal, not a universal legal requirement mandated by the Real Estate Commission for all advance fees.

B. Providing receipts is a component of a "full and complete accounting," but the overarching legal mandate is the delivery of the accounting itself within a specific timeframe.

D. A broker has a fiduciary duty to account for the principal's funds. Any unspent portion of an advance fee must typically be returned, not retained as profit.

1. State of New Jersey. New Jersey Administrative Code, Title 11, Chapter 5 (Rules of the New Jersey Real Estate Commission), Subchapter 9, Section 4. N.J.A.C. 11:5-9.4(a) states, "No licensee shall charge or collect any fee or commission in advance...unless a full and complete accounting of such funds is made...This accounting shall be made within 90 days of the date upon which the funds were collected."

2. State of New Jersey. New Jersey Administrative Code, Title 11, Chapter 5, Subchapter 9, Section 4. N.J.A.C. 11:5-9.4(b) states, "No licensee shall charge or collect any such fee or commission in excess of $25.00 without first having the person from whom such fee or commission is to be collected sign a contract..."

3. New Jersey Real Estate Commission. (2023). New Jersey Real Estate License Law and Rules. State of New Jersey, Department of Banking and Insurance. This official publication contains the full text of N.J.A.C. 11:5-9.4, confirming the 90-day accounting requirement. (See page 100 of the linked PDF version).