New Jersey License Law and Real Estate Commission Rules
The regulator
Real estate brokerage in New Jersey is regulated by the New Jersey Real Estate Commission, an arm of the Division of Consumer Affairs within the Office of the Attorney General. The Commission licenses three categories: salesperson, broker-salesperson, and broker. A salesperson must be affiliated with a licensed broker, must be compensated only through that broker, and may not accept a commission check or fee directly from a buyer, seller, or landlord. A broker-salesperson holds broker-level qualifications but elects to work under another broker's authority.
Conduct rules candidates must know
Brokers must maintain a licensed place of business, keep records the Commission can inspect, and hold client funds (earnest money, rents, security deposits) in a separate escrow account - never in the business or personal account. Commingling is a violation even if no money is missing. Advertising must identify the brokerage; a licensee may not advertise a property without written authority from the owner. Paying a fee to an unlicensed person for a referral is prohibited, and out-of-state licensees cannot be paid for brokerage activity on New Jersey property.
Traps
The exam loves the salesperson-paid-directly question, unlicensed assistants (they may do clerical and delivery work but may not show property, quote terms, or negotiate), and the renewal cycle. New Jersey licenses renew biennially and require continuing education (a total of 12 hours per two-year term, split between core and elective topics). Violations can bring fines, suspension, or revocation, and the Real Estate Education, Research and Recovery Fund can reimburse consumers harmed by licensee conduct.
Rule of thumb
Whenever a question turns on money, ask: whose hands may it pass through? The answer is almost always the broker's escrow account or the broker's commission - not the salesperson's pocket.