NJ & PA referral agent FAQ
Referral agent rules,
answered.
New Jersey and Pennsylvania agents can both keep an active license with SJ Referral. New Jersey referral agents' licenses are held by our referral-only broker, and Pennsylvania agents join through our company. Referral agents may only refer clients; they can't show homes or negotiate. Below: our answers about membership, then the New Jersey Real Estate Commission's own answers.
What is a real estate referral agent?
A licensed agent who doesn’t list or show homes. When someone you know is buying or selling, you pass them to a working agent through your broker, and you get part of the commission when the deal closes. In New Jersey, a referral agent’s license is held by a broker, often a referral-only office like ours. Pennsylvania agents can join us too, through our company.
How do I become a referral agent in New Jersey?
You need a New Jersey real estate license first (the pre-licensing course and the state exam). Then your license is held by a referral-only broker, who changes your license type to referral agent with the Real Estate Commission. If you’re already licensed, just fill out our join form and we handle the change with the state. Licensed in Pennsylvania instead? You can join through our company. Fill out the same form and we’ll take it from there.
I'm licensed in Pennsylvania. Can I join?
Yes. Pennsylvania agents can become referral agents through our company, the same as New Jersey agents. You get the same $100 a year membership and keep the same 80% of every referral fee. Fill out the join form, pick Pennsylvania as your license state, and we’ll walk you through moving your license. Licensed in both states? Tell us on the form.
How do I keep my NJ or PA real estate license without paying MLS fees?
Move your license to a referral-only office. In New Jersey a referral agent’s license is held by a broker like any other license, but you don’t list or show homes, so you don’t need the MLS, the Realtor board or E&O insurance. Pennsylvania agents can do the same through our company. With us that costs $100 a year, and you keep 80% of every referral fee.
What does it mean to “hang” my license with SJRN?
It means your license is held by our referral-only brokerage instead of a full-service office. Your license stays active. You stop paying desk fees, MLS and board dues. When someone you know wants to buy or sell, you call us, we place them with a good agent, and you get paid when it closes.
What happens to my license if I leave my brokerage in NJ?
When your broker releases your license, it goes inactive until another New Jersey broker picks it up. The state doesn’t let you pay to park it in inactive status. You have two years from the expiration of your last license to reinstate it. The simplest way to keep it active without selling is to move it to a referral-only broker like us. We handle the paperwork with the state.
I didn't close a deal this year. Should I let my license go?
You don’t have to. Letting it lapse throws away the classes, the exam and the network you built, and getting it back later is more work than keeping it. Move it to us for $100 a year instead of paying MLS, board, E&O and desk fees. It stays active, and you still get paid when you refer someone.
Do NJ referral agents have to do continuing education?
No. The NJ Real Estate Commission says referral agents are not required to complete continuing education. Instead, your broker reviews the referral agent restrictions with you when you’re licensed and at renewal, and certifies that to the Commission. If you later switch back to salesperson or broker, CE can be required at that point. This is the New Jersey rule. Pennsylvania sets its own, so if you’re licensed there, ask us.
How much does SJRN membership cost?
$100 a year. No MLS fees, no Realtor board dues, no E&O insurance, no office or desk fees. Most agents pay $1,000 to $2,000 a year in those just to keep an active license. For retired military, police and fire, the $100 is waived.
Is membership free for retired military, police and fire?
Yes. The $100 yearly fee is waived. Check the box on the join form and we’ll confirm the details with you. You still keep 80% of every referral fee.
How much of the referral fee do I keep?
80%. Say an agent earns a $10,000 commission and pays a 25% referral fee. That’s $2,500, and you keep $2,000. In New Jersey a referral fee is paid through your broker, so it comes to us when the deal closes and we pay you by check.
Can I refer buyers and sellers outside New Jersey?
Yes. Anywhere in the world. Your cousin moving to Tampa, your old roommate selling in Phoenix. You send the referral to us, and we find and vet an agent where they’re going. You still get paid.
Who picks the agent for my referral?
You can name an agent yourself, or you can call us. We research, vet and screen the right agent for that client and that town, locally or out of state, so the referral actually closes. We know the top agents in Camden, Gloucester, Salem, Mercer and the counties around them.
Can I go back to selling later?
Yes. Your license can be switched back to active status in minutes. If you’ve been a referral agent for a while, the state may require some continuing education before you change license type.
How do I move my license to SJRN?
Fill out the short join form. We take it from there and handle the transfer with the state. In New Jersey the state charges a small fee for the change, up to $75. Pennsylvania agents join through our company, and we’ll tell you what’s involved.
I'm with another referral company. How do I switch?
Fill out the join form and we move your license from your current office, in New Jersey or Pennsylvania. When you compare, ask any company the same things: Is there a person you can call? Who vets the agent your client gets? What’s your split after fees? Can you refer out of state? Our answers: yes, we do, 80% with no fees beyond $100 a year, and yes, anywhere.
What areas do you cover?
Our name says South Jersey, but we’re licensed throughout New Jersey and Pennsylvania. Our home base is South Jersey: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester and Salem counties. We also have an office in Mercer County, in Central Jersey. Members refer anywhere in the world.
What can a referral agent do, and not do, in New Jersey?
You can refer people to your broker, and point them to public websites and information. You can’t show homes, hold open houses, negotiate, sign listing agreements or contracts, or produce comparative market analyses. That’s the agent’s job. Yours is knowing who’s moving. Pennsylvania has its own rules for referral licensees. If you’re licensed there, ask us and we’ll go through them.
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The NJ Commission's answers
These come from the New Jersey Real Estate Commission's published FAQ about the referral agent license. We've kept their wording. They cover New Jersey licenses only. Licensed in Pennsylvania? Call us and we'll walk you through it.
I am licensed as a referral agent and want to change my status to salesperson, broker-salesperson or broker. Do I need to complete continuing education to do so?
Continuing education is required to change your license type. The amount and type of continuing education required varies depending on whether you were previously licensed as a salesperson, broker-salesperson or broker and the length of time you have been licensed as a referral agent. See N.J.A.C. 11:5-3.15.
Who will have to complete continuing education courses?
Individuals licensed as Real Estate Brokers, Broker-salespersons and salespersons are required to complete 12 credit hours of continuing education courses as a condition of the biennial renewal for the 2015-2017 license term by April 30, 2015. An additional $200 processing fee is imposed upon renewing licensees who complete the CE requirement between May 1, 2015 and June 30, 2015. After June 30, 2015, individuals with an inactive license with an expiration date of June 30, 2015 will be required to reinstate their license, and complete the applicable continuing education requirement.
This is the Commission's answer as originally published, and it refers to an earlier license term. Check the current term with the Commission.
How can I verify my current license status?
Licensees and the general public may access the Licensee Search portal on the NJ DOBI website.
Can I transfer my license from one broker to another without a paper license?
Yes. The REC no longer requires the return of your paper license to transfer to another broker. Transfers are now processed by the broker electronically via the online licensing services, or a paper application on the NJ DOBI website. After the present broker inactivates the license, the new broker may activate the license.
How do I get a pocket ID card?
Licensees can carry a print-out of their current license status, as posted on the Licensee Search function of the Department’s website.
Will I receive a paper license?
No. The New Jersey Real Estate Commission no longer mails licenses. You may now print and/or e-mail your license via the licensee portal. This license print service is available only to licensees in active status.
My license is currently inactive; can I pay a fee in order to maintain my license in an inactive license status?
No, you cannot pay to have your license remain in an inactive status. Everyone has two (2) years from the expiration date of the last license issued in which to reinstate (reactivate) their license. Your license must be issued to a licensed New Jersey broker. Upon the issuance of your license to your employing broker or broker-of-record, you may request to have your license inactivated by the broker through the on-line process if you do not wish to maintain an active license.
I did not renew my license for the 2013-2015 license term. What is the procedure and deadline for reinstating my license?
Your license must be reinstated (reactivated) no later than June 30, 2015. You must submit a reinstatement application completed by you and your employing broker or broker-of-record and submit it to the Real Estate Licensing Services Bureau accompanied by the appropriate fee ($150 salesperson or $250 broker-salesperson).
Reinstatement application (PDF)
This is the Commission's answer as originally published, and it refers to an earlier license term. Check the current term with the Commission.
What is the fee to change the license type of a salesperson or broker-salesperson to a referral agent?
If your salesperson or broker-salesperson license is presently in active status with a broker, the fee to change your license to a referral agent is $50. If your license is presently in inactive status during the current license term, the fee to change your license type is $50, and the fee to transfer to a broker is $25.
If I am currently licensed as a salesperson or broker-salesperson, when can I change my license type to referral agent?
Licensees who wish to change their license type from broker-salesperson or salesperson to referral agent will be able to do so online through their employing broker or broker of record.
Will I be able to apply for a referral agent license after passing the salesperson or broker license examination?
Yes, individuals who pass the license examination on or after July 1, 2011 will be able to indicate on the examination pass notice/license application that they are applying for a referral agent license. They and their broker can complete the required certifications directly on the license application form.
Can a licensed referral agent also be licensed as a salesperson or broker-salesperson or employing broker or broker-of-record simultaneously?
No, a referral agent cannot simultaneously hold a license as a salesperson, broker-salesperson, employing broker or broker-of-record.
Is a referral agent required to renew their license?
Yes, a referral agent will be required to renew beginning with the 2013-15 biennial license renewal.
This is the Commission's answer as originally published, and it refers to an earlier license term. Check the current term with the Commission.
Can a referral agent make referrals to other brokers and or companies?
No, a licensed referral agent is only permitted to refer prospects to the broker through whom they are licensed, and is only permitted to accept compensation from his or her employing broker or broker-of-record.
How are the brokerage activities of a referral agent restricted?
A referral agent is limited to referring prospective consumers of real estate brokerage services to their employing broker or broker-of-record.
Click here for more detailed information on the restrictions
What are the requirements for licensure as a referral agent?
To qualify for licensure as a referral agent, an individual must fulfill the prelicensure education requirement for licensure as a salesperson or broker and pass the salesperson or broker license examination. The applicant and his/her broker must also submit certifications confirming their having reviewed the legal restrictions on the brokerage activity of referral agents.
Does a referral agent have to be licensed with and employed by a broker?
Yes, all referral agents must be employed by and operate under the supervision of a licensed real estate broker.
When will I be required to complete continuing education courses?
All individuals licensed as brokers, broker-salespersons and salespersons must complete continuing education requirements every two (2) years in order to renew their license for the upcoming biennial term.
Will a referral agent be required to complete continuing education courses?
No, referral agents are not required to complete continuing education courses but, upon initial licensure and renewal, their brokers are required to review with them the restrictions imposed by law upon the brokerage activities of referral agents and to certify to the Commission that they have done so.
When will the referral agent license type become effective?
The referral agent license type became effective July 1, 2011. Proposed rules regarding referral agents will be published in the New Jersey Register and posted on the Department’s website, with a 60-day comment period to follow.
This is the Commission's answer as originally published, and it refers to an earlier license term. Check the current term with the Commission.
SourceNJ Real Estate Commission, Restrictions upon brokerage activities of referral agents (PDF). Rules change. When in doubt, the Commission's word wins.
Check any license: NJ Licensee Search. Forms: Commission applications and forms.