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.
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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