Information Regarding the 2018
New Jersey Real Estate Referral Agent Category Law Changes

 
 

In 2018, the state of New Jersey changed the laws regarding real estate referral licenses. The new law mandates that anyone who wishes to remain a referral agent _must_ hang their license with a _referral only_ office. The New Jersey Real Estate Referral Group is a referral only agency and is fully compliant with these new laws.

The law was signed in August of 2018 and will be enforced by the current license renewal cycle ending June 30, 2019. That said, any agent who wishes to remain in referral status must move to a referral only brokerage by the June 30th deadline.

 
 

Frequently Asked Questions

Regarding the August 2018 New Jersey
Real Estate Referral Law Change

**Please note, all of the questions and answers below have been approved by the New Jersey Real Estate Commission.**
What updates have been made to the referral license category?
The referral agent category was replaced as part of a law to bring New Jersey in line with federal unemployment law. The law was signed in August of 2018 and will be enforced by the current license renewal cycle ending June 30, 2019.


What happens to those who were previously licensed as referral agents who wish to only do referrals?
Under the law signed in 2018, those who previously held a referral agent license will be known as a salesperson licensed with a real estate referral company, or Salesperson (Referral) and must have their licenses hang with a referral company.


What are the brokerage activities of a Salesperson (Referral)?
No, changes were made to the restrictions placed on those who held a referral agent license. These agents are limited to referring prospective consumers of real estate brokerage services to their employing broker or broker-of-record. A full list of referral agent restrictions can be found at: http://njrerg.com/agent-restrictions.html


Will salespersons licensed with a referral company be required to complete continuing education as a condition of re-licensure?
No. As long as their license is held with a referral company, they will not be required to complete continuing education in order to relicense.


What happens to salespersons whose licenses were previously held in a real estate referral company that wish to fully engage as a salesperson in the real estate business?
Real estate salespersons who wish to be full service agents must hang their license with a full-service brokerage company. They will no longer be allowed to hang their license with a real estate referral company; those who do will have their real estate activities limited to solely referring real estate business to their supervising brokers.


Under the new law, can a real estate office have both full service salespersons and those wishing to just do referrals in the same company?
No. The law no longer allows both full service salespersons and those strictly doing referrals from having their licenses hang in the same company.


Does a real estate office holding the licenses of salespersons strictly doing referrals need to have the word referral in the name of the company?
No. Offices holding the licenses of salespersons with a real estate referral company are not required to have the word referral in the name of the company.


If I am a Salesperson (Referral) and I wish to become a full service agent, am I required to complete continuing education before I may change my license status?
Yes. The Real Estate Commission has a chart on their website which details the amount of continuing education you must take in order to change your license status. The chart may be found online at: http://www.state.nj.us/dobi/division_rec/licensing/splwrerc.pdf.


Is there a deadline for those who held referral agent licenses to decide whether they will be salespersons licensed with a real estate referral company or full service salespersons?
Yes. Licensees have until the end of the real estate license cycle, which ends on June 30, 2019, to decide whether they will be a Salesperson (Referral) or a full service salesperson. Those who do not complete either option may have their license become inactive as of July 1, 2019.


Is there a fee to change my license status or office if I was a referral agent?
No. Licensees who were affected by the recent law change will not have to pay an additional fee to either transfer their license to a real estate referral company or to change their license type to that of a full service salesperson.

Original renewal fees remain in effect.

Please note: If our FAQ page has not answered all of your questions or should you want to speak with someone in person, please feel free to contact us at any time and we would be happy to answer all your Real Estate Referral related questions.

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