Licensing NJ: Differences In Real Estate Licenses

What’s the difference between real estate sales licenses in New Jersey?

There are four kinds of real estate licenses issued in New Jersey. They are for salespersons, broker-salespersons, brokers, and referral agents.

Differences In Sales And Broker Licenses

The relationship between a broker and the remaining three is much the same as that between a boss and workers. A broker operating his or her own office under state law must supervise and oversee all sales licensees working from that office or on the broker’s behalf.

A broker is the only individual empowered by state law to conduct a real estate transaction. Sales persons have no legal authority to participate in a transaction without their broker’s involvement.

Individuals who hold a New Jersey broker’s license but work in the office of, and on behalf of, another broker are known by the state as “broker-salespersons.” They too are subject to supervision.

Referral agents are limited to referring prospective consumers of real estate brokerage services to their employing broker or broker-of-record. They cannot accept compensation for referrals from anyone other than their employing broker. They must take all pre-licensure education required for licensure, and pass the salesperson or broker-salesperson license examination.

It’s more difficult and takes longer to get a broker’s license.

You must hold a NJ real estate sales license for at specified period of time before you can qualify to become a broker. Then you need to take significantly more education. You need to pass another licensing exam. Unless you intend to work with another broker as a broker-salesperson or referral agent, you’ll need to start up your own office and meet state requirements for it.

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  • New Jersey Real Estate Sales Licensing