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Overview

In most cases, you are subject to the same rules as every other licensed agent. However, due to the “Referral Agent” license type in New Jersey, there are special limitations you need to understand.
New Jersey imposes specific restrictions on referral agents that limit certain activities. Review these carefully to ensure compliance.

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Key Restrictions

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What You CAN Do

  • Refer clients to other licensed agents
  • Negotiate referral fees with receiving agents
  • Maintain your real estate license
  • Receive referral commissions
  • Work with clients to understand their needs
  • Build relationships with other agents

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Detailed Restrictions

Referral agents must limit their activities to identifying potential clients and referring them to qualified full-service agents. You cannot:
  • Provide real estate advice beyond general information
  • Assist with property searches beyond initial consultation
  • Participate in negotiations between buyers and sellers
  • Handle contracts or legal documents
When marketing your services:
  • Must clearly identify yourself as a “referral agent”
  • Cannot advertise full-service real estate activities
  • Business cards must include “referral agent” designation
  • Cannot mislead clients about your service limitations
  • Can only earn commission from referral fees
  • Cannot earn commission from direct sales transactions
  • Must work through licensed brokers for all referrals
  • Cannot handle escrow or trust funds

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Compliance Requirements

1

Proper Disclosure

Always disclose your referral agent status to potential clients upfront
2

Clear Boundaries

Explain what services you can and cannot provide
3

Licensed Referrals

Only refer to properly licensed agents and brokers
4

Documentation

Use proper referral agreements for all transactions

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Business Card Requirements

Business Card Template

Learn about required designations and approved templates
 According to New Jersey Real Estate License Act regulations, business cards must indicate that you are a referral agent by using:
  • “Referral Agent” or
  • “Referral Associate”

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Continuing Education

Good News! New Jersey waives continuing education requirements for referral agents.
However, if you choose to become a full-service agent later, you’ll need to complete any missed continuing education:

CE Requirements Chart

View continuing education requirements for switching to full-service

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Additional Resources

NJ Real Estate Rules

Complete regulations (45:15)

License Law Updates

Understanding recent changes

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Frequently Asked Questions

No, you must refer even family members to licensed full-service agents. However, you can earn a referral fee from their transactions.
Provide general market information only. For specific advice about properties, values, or transactions, refer them to a full-service agent.
While not prohibited, your role ends at the referral. The receiving agent handles all transaction activities including closings.
Violations can result in license discipline, fines, or license revocation. Always err on the side of caution and refer activities to full-service agents.

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Questions About Compliance?

Contact NJ Real Estate Commission:For guidance on specific situations, consult with the state directly.