Real Estate Licenses in New Jersey
The four different types of licenses granted by the New Jersey Real Estate Commission (REC) apply to the following individuals.
- Broker – To achieve a broker license takes longer and is more involved than other types of licenses. You must already possess a New Jersey real estate sales license for three years prior to your application and have worked under the supervision of a broker during that time. You also need to complete 150 hours of broker licensing education courses. Initially, you must take the 90 hours of general real estate education before doing the 30-hour office management course and the 30-hour ethics and agency law course in any order you choose. Upon completion, you will need to pass the broker examination to become an employing broker, broker-salesperson, broker-manager or broker-of-record. Keep in mind that, as a broker, you will have to start your own office unless you expect to work as a broker-salesperson or referral agent with another broker.
- Broker-Salesperson – This person holds a broker’s license but works in the office of and on behalf of a managing broker.
- Salesperson – This person must have a high school diploma or equivalent and must have completed 75 hours of real estate education at a school licensed by the New Jersey Real Estate Commission in order to sell, list, or rent real estate in New Jersey. He or she always works as an agent for an employing broker and, therefore, cannot manage a real estate brokerage.
- Referral Agent – This person refers prospective customers to a real estate agent who will pay them a portion of their commission from any transaction that results from the referral. For this reason, a real estate referral agent is not actively involved in showing or listing real estate. Nevertheless, they must first pass all of the requirements to become a salesperson before switching over to become a referral agent. Due to changes in New Jersey law in the past couple of years, a referral agent must hang their license with a referral only agency, which will process any commissions received from referrals.
Since the broker is the only person with the legal authority to conduct real estate transactions, he or she supervises all the sales licensees working within an office. Essentially, all of the licensees in an office report to the broker in the same way that workers report to their boss.
Check Local Real Estate Schools in Your Area