NJ licensing and the Real Estate Commission
License types, who regulates you, what the Commission can do to a license, and how renewal and continuing education work.
Sources: N.J.S.A. 45:15; N.J.A.C. 11:5-1 and 11:5-12
Licensing and the Commission in one paragraph
New Jersey license types side by side
| What you can do | How you qualify | |
|---|---|---|
| Salesperson | List, sell, buy, lease and negotiate for clients, always under an employing broker | Age 18, high school diploma or equivalent, 75-hour course, PSI exam, apply through a sponsoring broker |
| Broker-salesperson | The same work as a salesperson, under another broker's supervision | Meets broker requirements but chooses not to run a brokerage |
| Broker | Runs a brokerage, supervises licensees, holds the trust account | 3 years full-time as a NJ salesperson, 150 hours of broker courses, broker exam within 1 year |
| Referral agent | Only refers prospects to the supervising broker. No showings, CMAs, negotiating or handling money | Licensed with a broker's referral company. No CE needed this term; 2 hours for terms starting July 1, 2027 |
Licensing and the Commission: 4 rules to memorize
The Commission regulates. PSI only tests.
The New Jersey Real Estate Commission, part of the Department of Banking and Insurance, issues licenses, keeps records and disciplines licensees.
Four license types.
Salesperson, broker-salesperson, broker and referral agent. A salesperson always works through an employing broker.
Sanctions are real.
The Commission can fine a licensee and suspend or revoke a license.
12 CE hours this term.
Licenses run on two-year terms. The current one ends June 30, 2027, with CE due by April 30, 2027. Terms starting July 1, 2027 require 18 hours under P.L. 2026, c.52.
Licensing and the Commission, explained
There are four license types. A salesperson is licensed through an employing broker and cannot operate alone. A broker-salesperson has passed the broker requirements but works under another broker. A broker can run a brokerage. A referral agent only refers prospects to a broker for a fee, and has to say so in every ad except a business card.
To become a salesperson you need to be at least 18, have a high school diploma or equivalent, finish a 75-hour prelicensing course, pass the PSI exam, get fingerprinted and apply through a sponsoring broker. New Jersey has no license reciprocity with any other state. Eligible applicants may request an education waiver from NJREC; a waiver is not automatic reciprocity.
Renewal runs on a two-year term. The current term started July 1, 2025 and ends June 30, 2027. You need 12 hours of continuing education, with at least 6 in core topics: 2 hours of ethics, 1 hour of fair housing and the LAD, and 1 hour of agency. If you were first licensed in the second year of a term, you can renew that first time without CE. The 12 hours applies to the 2025 to 2027 term; terms starting July 1, 2027 require 18 hours under P.L. 2026, c.52.
The Real Estate Guaranty Fund protects consumers. If someone wins a court judgment against a licensee for misconduct and cannot collect it, they can apply to the fund. $10 of your $160 salesperson license fee goes into it.
A referral agent is a salesperson licensed with a real estate referral company, which a broker sets up and supervises. The job is narrow: point people to public sources and refer them to the supervising broker, who pays all referral fees. A referral agent cannot show property, hold an open house, prepare a CMA, negotiate a listing or contract, or collect any money. They can work for only one broker at a time and do not need CE to renew this term; for terms starting July 1, 2027, P.L. 2026, c.52 requires 2 hours.
Moving up to broker takes 3 years of continuous, full-time licensure as a New Jersey salesperson plus 150 hours of broker prelicensing education (a 90-hour general course and two 30-hour courses). You then have 1 year after finishing that education to pass the broker exam and apply. Someone who qualifies as a broker but chooses to work under another broker holds a broker-salesperson license.
Know the discipline numbers. The Commission can fine up to $5,000 for a first violation and up to $10,000 for each later one, on top of or instead of probation, suspension or revocation. You must tell the Commission within 30 days of a criminal conviction, an indictment or any formal criminal charge. If the Guaranty Fund pays a claim because of your conduct (up to $20,000 per transaction), your license is revoked and you cannot be reinstated until the judgment is satisfied in full and the fund is repaid with interest.
How the exam tries to trip you up
- A question says a referral agent 'helped out' by showing a house or running a quick CMA. Both are prohibited even if the broker approves. A referral agent only refers.
- Broker-salesperson sounds like a higher rank of salesperson with extra powers. It is not. The person qualifies as a broker but still works under another broker, exactly like a salesperson.
- Watch who does what. PSI gives the exam, the Commission licenses and disciplines, and criminal penalties come from the courts. A fine, suspension or revocation is always the Commission.
- The criminal reporting duty is triggered by a charge or indictment, not just a conviction. Pick 30 days, and do not wait for the case to end.
Licensing and the Commission practice questions
Which body licenses and disciplines real estate licensees in New Jersey?
Licensing and the Commission flashcards
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All 7 terms at a glanceShowHide
- NJREC
- The New Jersey Real Estate Commission. Licenses, regulates and disciplines licensees.
- Referral agent
- A licensee who only refers prospects to a broker for a fee.
- Real Estate Guaranty Fund
- Pays eligible consumer claims when a judgment against a licensee cannot be collected.
- Broker-salesperson
- A person qualified to be a broker who works under another licensed broker's supervision.
- Real estate referral company
- A separate business a licensed broker sets up and supervises to employ referral agents.
- Broker experience requirement
- 3 years of continuous, full-time licensure as a New Jersey salesperson before applying for a broker license.
- Guaranty Fund cap
- Up to $20,000 per transaction, and the responsible licensee's license is revoked until the judgment is satisfied in full and the fund is repaid with interest.
Licensing and the Commission: common questions
Sources and further reading
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