NJ advertising, inducements and buyer rebates
What every New Jersey real estate ad must say, how free offers work, and who can give a buyer a rebate.
Sources: N.J.A.C. 11:5-6.1; P.L. 2009, c. 273
Advertising and rebates in one paragraph
New Jersey ads: what they must include vs what they cannot do
| Must include | Cannot do | |
|---|---|---|
| Who the firm is | Broker's regular business name, more prominent than the agent's, plus a brokerage term like 'Realtor' or 'real estate broker' | Use 'realty' or 'real estate' alone, or call a home a place of business |
| Commissions and licensure | 'In New Jersey, broker compensation is fully negotiable and not set by law.' when rates come up; 'Licensure does not imply endorsement' when licensure comes up | Suggest a fixed or standard rate |
| Inducements | Written disclosure for benefits over $1,000 retail, given no later than when the offer is made | Run a lottery, contest, game or drawing |
| Sale status | 'Under contract' after attorney review until closing | Say 'sold' before a closing transfers title |
| Rebates | Notice that the buyer pays any taxes and should see a tax professional | Offer a rebate to a seller, landlord or tenant, or tie it to the broker's other services |
Advertising and rebates: 4 rules to memorize
Broker name, more prominent.
Ads show the broker's registered name in a more prominent manner than the agent's.
Commissions are negotiable.
Mention a rate or compensation amount and you must add 'In New Jersey, broker compensation is fully negotiable and not set by law.'
No drawings or contests.
Free or discounted offers are allowed, lotteries and games are not. Over $1,000 retail needs written disclosure.
Only brokers rebate.
Buyer rebates come from the broker, are agreed in writing at the start and are paid at closing.
Advertising and rebates, explained
Some lines are required word for word. Mention a commission rate or compensation amount and you must include 'In New Jersey, broker compensation is fully negotiable and not set by law.' Mention licensure and you must include 'Licensure does not imply endorsement.' Referral agents add 'Services limited to referring prospects to broker.'
Inducements are allowed. You can advertise free or discounted inspections, warranties, appraisals and even commission discounts. You cannot run a lottery, contest, game or drawing. If the benefit is worth more than $1,000 retail, you must give a written disclosure of what the consumer has to do, when they will get it and any compensation you receive.
Since 2010, New Jersey law allows rebates to residential buyers, but only from the broker. The rebate is agreed at the start of the relationship in writing, disclosed to everyone including the lender, and paid as a credit or a check from the closing agent at closing. The broker must tell the buyer to talk to a tax professional.
Watch the word 'sold.' You cannot say a property sold, or that you took part in the sale, until a closing transfers title, and that includes notices to the MLS. Once a contract survives attorney review, or a contract not subject to review is fully signed and delivered, any ad for the property must say 'under contract' until closing.
A few more ad rules show up on the exam. You cannot advertise, or put a sign on, a property another broker has exclusively listed without that broker's prior written consent. If you use a personal cell, home phone or personal email in an ad, the brokerage office number goes in too, with the required brokerage identification. For an inducement over $1,000, the written disclosure has to reach the consumer no later than when the offer is made.
Rebates have tight limits. Only purchasers of residential property can get one, never sellers, landlords or tenants, and it cannot depend on using the broker's other services or affiliates. An ad for a rebate must say the buyer pays any taxes on it and should talk to a tax professional, in type at least as large as the rest of the ad.
How the exam tries to trip you up
- The ad says 'Smith Realty' and nothing else, and the question asks if it complies. It does not. 'Realty' alone does not show a brokerage, so the ad needs a term like 'Realtor' or 'real estate broker.'
- A salesperson offers a buyer part of their commission. Only the broker can give a rebate, and only to a residential buyer, agreed in writing at the start.
- Attorney review ended and the agent posts 'SOLD.' Wrong. Until closing transfers title, the ad must say 'under contract.'
- A free $1,500 home warranty is allowed with written disclosure. A $50 gift card drawing is not, because any lottery, contest, game or drawing is banned no matter the value.
Advertising and rebates practice questions
Under the rules effective January 20, 2026, a New Jersey ad referring to a commission rate or compensation amount must include which statement?
Advertising and rebates flashcards
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All 7 terms at a glanceShowHide
- 'In New Jersey, broker compensation is fully negotiable and not set by law.'
- Required in ads referring to commission rates or compensation amounts.
- Inducement over $1,000
- Requires written disclosure of conditions, delivery timing and compensation.
- Buyer rebate
- Allowed from the broker only, agreed in writing at the outset, paid at closing.
- 'Under contract'
- Required in ads for a property after its contract survives attorney review and until closing. 'Sold' waits for closing.
- 'Licensure does not imply endorsement'
- Required statement whenever an ad mentions licensure by the Real Estate Commission.
- 'Services limited to referring prospects to broker'
- Required on every referral agent ad except business cards.
- Another broker's exclusive listing
- You need that listing broker's prior written consent before advertising it or placing a sign on it.
Advertising and rebates: common questions
Sources and further reading
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