New Jersey License Law and the Real Estate Commission
New Jersey real estate practice is governed by the license law at N.J.S.A. Title 45:15 and the New Jersey Administrative Code at N.J.A.C. 11:5, administered by the New Jersey Real Estate Commission (NJREC) within the Department of Banking and Insurance. This chapter covers the Commission's authority and the broker credential.
NJREC and Title 45:15
The New Jersey Real Estate Commission licenses and regulates brokers, broker-salespersons, and salespersons under Title 45:15 and N.J.A.C. 11:5. The Commission adopts rules, investigates complaints, and may deny, suspend, or revoke licenses and impose penalties. A person who, for a fee, sells, lists, leases, or negotiates real estate for others must be licensed unless a specific statutory exemption applies.
Broker, Broker-Salesperson, and Salesperson
New Jersey recognizes three license types. A broker may operate a brokerage, hold escrow, and supervise licensees. A broker-salesperson has passed the broker exam but works under another broker. A salesperson works under a broker and may not hold escrow or operate independently. The broker credential requires three years of full-time licensed salesperson experience plus additional broker education before examination.
Enforcement and the Guaranty Fund
The Commission may discipline licensees for violations such as commingling trust funds, substantial misrepresentation, and failing to make required disclosures. New Jersey also maintains a Real Estate Guaranty Fund that can reimburse consumers who obtain an unpaid judgment against a licensee for fraud in a licensed transaction. When the fund pays, the licensee's license is affected until the fund is repaid.