Frequently Asked Questions

 
  Considering joining the New Jersey Real Estate Referral Group? We have prepared this FAQ section to help answer any real estate referral questions you may have.
 
   
  What is a Real Estate Referral Agent?  
 
  1.) A Referral Associate is an individual with a real estate license who has chosen to place that license with a referral brokerage and has contractually agreed not to actively engage in real estate transactions.
  2.) A Referral Associate does not belong to any Board of Realtors® or Multiple Listing Service and is not required to purchase errors and omissions insurance.
  3.) Referral Associates must renew their licenses bi-annually, but are not subject to the New Jersey continuing education requirements.


 
  Why become a real estate referral agent?  
  The simple answer is to earn more money!   
But, taking this a step further, we find there are two primary groups of referral agents:   
  Group 1
  Professionals who leverage their network and create an additional revenue stream by referring property buyers and sellers to active Realtors.  
     
  Group 2
  Real estate licensees who do not have the time or interest to actively list or sell real estate. Becoming a referral agent allows you to keep your license active for $100.00 or less annually and turn the leads you do generate into extra income.


 
  Who can be a Referral Agent?  
 
  Someone brand-new to real estate
  Anyone who wants to get their feet wet in real estate while working full-time at another career
  Retirees from full-time real estate sales who want to utilize referral status as an annuity
  Any former full-time agent, referring their past customer base for years to come
  Anyone frequently interacting with people who is willing to get a referral license


 
  What is the advantage of keeping my real estate license active as a referral agent?  
  In New Jersey, your inactive license will eventually be cancelled. With an active license you meet the basic requirement for earning a commission from a real estate transaction.


 
  How exactly do I earn a commission?  
  When you place a referral with us (by telephoning or e-mailing the basic information), a full-time real estate salesperson is enlisted to handle the actual listing or sale. You will receive a percentage of the commission earned once the customer you referred closes his or her real estate transaction.


 
  Can I choose who will receive my referral leads?  
  Yes, you can. You may decide to cultivate a relationship with one or more Sales Associates in your area. We place no restrictions on to whom, or to which brokerage company, you can refer your leads.

 
     
  If I'm the one buying or selling, can I still earn a referral fee?  
  Yes, this is the easiest of all ways to earn a fee. As a member of the New Jersey Real Estate Referral Group, you can place yourself as a referral and earn a portion of the commission back once your transaction closes.


 
  If I am coming to the New Jersey Real Estate Referral Group from full-time sales status, can I maintain my membership in the local Board of Realtors and/or multiple listing services?  
  No, as a member of the New Jersey Real Estate Referral Group, you will no longer have the expenses of those memberships. As your broker, NJRERG is not a member of any real estate boards or any multiple listing services.


 
  Can I continue as a referral associate if I move out of state?  
  Yes, you can. And you should, since we will enable you to earn referral fees by placing referrals from anywhere in the country.


 
  Can you summarize the benefits of becoming a Real Estate Referral Agent?  
  You can earn commissions simply by supplying a lead (Name, Address, Phone #, and Email) that turns into a closed transaction.


 
  Does a real estate referral agent have to be licensed with and employed by a broker?  
  Yes, all referral agents must be employed by and operate under the supervision of a licensed real estate broker.


 
  What are the requirements for licensure as a referral agent?  
  To qualify for licensure as a real estate referral agent, an individual must fulfill the pre-licensure education requirement for licensure as a salesperson or broker and pass the salesperson or broker license examination.  The applicant and his/her broker must also submit certifications confirming their having reviewed the legal restrictions on the brokerage activity of referral agents.


 
  How are the brokerage activities of a referral agent restricted?  
  Click here for more detailed information on the restrictions on the brokerage activity of referral agents.


 
  Can a referral agent make referrals to other brokers and or companies?  
  Yes, as long as the referral goes through the NJRERG office, the agent can refer the lead to any agency in the state.


 
  Is a referral agent required to renew their license?  
  Yes, a referral agent will be required to b-annually renew their license. The cost of this bi-annual renewal is covered by the associates $100 annual fee and / or referral arrangement with NJRERG.


 
  Can a licensed real estate referral agent also be licensed as a salesperson or broker-salesperson or employing broker or broker-of-record simultaneously?  
  No, a referral agent cannot simultaneously hold a license as a salesperson, broker-salesperson, employing broker or broker-of-record.


 
  Will I be able to apply for a real estate referral agent license after passing the salesperson or broker license examination?  
  Yes, individuals who pass the license examination will be able to indicate on the examination pass notice/license application that they are applying for a referral agent license.  They and their broker can complete the required certifications directly on the license application form. 


 
  If I am currently licensed as a salesperson or broker-salesperson when can I change my license type to referral agent?  
  Licensees who wish to change their license type from broker-salesperson or salesperson to referral agent can do so immediately.


 
  What is the fee to change the license type of a salesperson or broker-salesperson to a referral agent?  
  Please see NJRERG’s fee schedule. Fees vary depending on status and type of license.


 
  I did not renew my license for the most recent license term. What is the procedure and deadline for reinstating (reactivating) my license?  
  You must submit a reinstatement application completed by you and your employing broker or broker-of-record and submit it to the Real Estate Licensing Services Bureau accompanied by the appropriate fee ($150 salesperson or $250 broker-salesperson).  The application must be post marked no later than June 30, 2017.


 
  My license is currently inactive; can I pay a fee in order to maintain my license in an inactive license status?  
  No, you cannot pay to have your license remain in an inactive status.  Everyone has two (2) years from the EXPIRATION DATE of the last license issued in which to reinstate (reactivate) their license.  Your license must be issued to a licensed New Jersey broker.

Upon the issuance of your license to your employing broker or broker-of-record, you may request to have your license inactivated by the broker through the on-line process if you do not wish to maintain an active license.


 
  Can I reinstate my un-renewed license and change my license type to referral agent?  
  Yes, you can submit a referral agent application for reinstatement and change of license type.  The application must be accompanied by a membership fee of $100, a license fee ($150 for salesperson license-$250 for broker-salesperson) and an additional license type change fee of $50. Please see our schedule of fees for further clarification.


 
  Will I receive a paper license?  
  No. The New Jersey Real Estate Commission no longer mails licenses. You may now print and/or e-mail your license via our licensee portal at https://www20.state.nj.us/DOBI_RELOLSRV/LicenseeLogin. This license print service is available only to licensees in active status.


 
  How do I get a pocket ID card?  
  Licensees can carry a print-out of their current license status, as posted on the “Licensee Search” function of the Department's website at https://www20.state.nj.us/DOBI_LicSearch/recSearch.jsp.


 
  How can I verify my current license status?  
  Licensees and the general public may access the “Licensee Search” function available at https://www20.state.nj.us/DOBI_LicSearch/recSearch.jsp.


 
  Will a referral agent be required to complete continuing education courses?  
  No, referral agents are not required to complete continuing education courses but, upon initial licensure and renewal, their brokers are required to review with them the restrictions imposed by law upon the brokerage activities of referral agents and to certify to the Commission that they have done so.


 
  I am licensed as a referral agent and want to change my status to salesperson, broker-salesperson or broker.  Do I need to complete continuing education to do so?  
  Continuing education is required to change your license type.  The amount and type of continuing education required varies depending on whether you were previously licensed as a salesperson, broker-salesperson or broker and the length of time you have been licensed as a referral agent.  See N.J.A.C. 11:5-3.15. 


 
 

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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