2019 New Jersey Referral License Law Update

In late 2018, legislation was ratified, affecting New Jersey real estate referral agents & companies. The law, NJ S430, adds two new real estate license types and removes one. The changes go into effect in 2019.

In short…

What we previously called a real estate “Referral Agent” license type no longer exists, those licenses are now referred to as a: “Salesperson Licensed with a Real Estate Referral Company” (SLWRERC).

There is now a second type of real estate brokerage/company license, called a “Real Estate Referral Company” (e.g. General Referral). Previously, all brokerages were licensed as a “Real Estate Company”, without distinction for referral companies.

Key effects. Confusing name changes aside, this law has introduced some important consequences for current and prospective referral agents in New Jersey:

• If you hold a referral license which is active with a Real Estate Company & NOT a Real Estate Referral Company, you risk losing your license on June 30, 2019. Before that date you must either join a real estate referral company or complete the continuing education required to convert back to a Salesperson or Broker Associate license type.

• SLWRERCs are subject to the same licensed activity restrictions as they were when they held a “Referral Agent” license type..

• SLWRERCs are also subject to the same benefits as before. No continuing education requirements.

• As the new title implies, former Referral Agents will now be licensed as a special classification of Salesperson: Salesperson (Referral).

The transition. As for how the state is handling these changes, here are the important points:

• Salespersons-formerly-licensed-as-referral-agents are not eligible for renewal on June 30th unless they are licensed with a real estate referral company or have completed their Continuing Education requirements.

• If you are affected by the statutory changes, no additional fee will be imposed by the state to transfer your license to a Referral Company or to change your license type to a full service salesperson.

Don’t risk becoming inactive!

We offer plans for referral agents at any stage of their career.

  ![](/images/blog/goodbye-referral-license-status.png)