While some people may be familiar with the duties and responsibilities of property management companies, not many people are aware of their obligations with respect to real estate licensing laws. Although most of a property manager’s time is consumed with resident concerns and upkeep of their properties, they also have to abide by the rules set forth by the New Jersey Real Estate Commission if they wish to rent or lease properties in New Jersey.
New Jersey Community Association Management and Real Estate Activities
For managers of community associations, a broker’s license is mandatory if the manager is involved in renting, leasing, selling, or advertising properties and collecting rent. Because these facets of property management are considered real estate activities, they are subject to New Jersey real estate licensing laws.
Other activities that fall under this category include procuring prospects and negotiating or assisting with the listing and renting of properties. A salesperson, however, may also conduct real estate business as longer as her or she works under the authority of a broker within the property management company.
Real Estate Broker Licensing Requirements in New Jersey
To understand property management companies’ obligations under the law, it may be helpful to look at broker licensing requirements in the state of New Jersey.
The requirements are as follows:
- A person must be 18 years of age or older
- He or she must be a high school graduate or equivalent
- This person must provide evidence of good moral character
- He or she must pass the real estate broker examination
- He or she must also have worked as a full-time salesperson for three years immediately preceding the date of application
- He or she must pass a 90-hour pre-licensure course at an approved school
Real Estate Salesperson Licensing Requirements in New Jersey
As long as he or she works under the direction of a licensed broker, a salesperson may rent, list, and collect rents for managed properties. Nevertheless, this person is still subject to the following New Jersey licensing requirements:
- A person must be 18 years of age or older
- He or she must be a high school graduate or equivalent
- This person must also provide evidence of good moral character
- He or she must pass the real estate salesperson examination
- He or she must complete a 75-hour pre-licensure course at an approved school
It is also important to remember that New Jersey does not have reciprocity with any other state.
Does a Property Manager Need a Broker’s License to Handle His Own Property?
Although there aren’t many exceptions to the broker’s license requirement, there are some cases in which a property manager is exempt. For instance, if a manager owns the property, then he or she doesn’t need a license to sell, rent, or lease it.
Inquire About a Property Manager’s License Before Hiring
Although there are many things to consider prior to engaging a property management company, it is important to know if it is licensed appropriately. Fortunately, you can confirm the license status of a New Jersey property manager by checking out the Commission’s Real Estate Licensee Search (link is on source page).
If you have additional questions about New Jersey property management requirements and possible exceptions, you should get in touch with the New Jersey Real Estate Commission (link also on source page).
While it may be tempting to assume that any prospective property management company has the appropriate real estate licenses, it isn’t the kind of thing you should overlook during the hiring process. Managing a large-scale rental property usually involves all types of real estate transactions. The last thing you want to find out is that the company you just signed to a long-term contract has no authority to conduct them.
