§ 11:5-2.2 School Facilities and Location Requirements +10New Jersey · Real Estate · English

No person other than a guest lecturer may teach real estate education courses fulfilling prelicensure educational prerequisites unless licensed as an instructor. Each applicant must be at least 18 years old and have good moral character, including absence of disqualifying convictions under N.J.S.A. 45:15-12.1, subject to demonstrating rehabilitation. Non-attorney applicants must submit a NJ State Police Request for Criminal History Record Information Form with a certified check/money order for the processing fee.

• ✓Instructor applicants must be at least 18 years old with good moral character
• ✓Non-attorney applicants must submit a criminal history record request form with processing fee
• ✓Only licensed instructors and guest lecturers may teach prelicensure courses

Each instructor applicant must hold a bachelor's degree from an accredited college/university, except: NJ licensed brokers continuously licensed for two years immediately preceding application, and licensed brokers from other states continuously licensed for three years immediately preceding application.

• ✓Instructor applicants generally must hold a bachelor's degree from an accredited institution
• ✓NJ brokers continuously licensed for 2 years are exempt from the degree requirement
• ✓Out-of-state brokers continuously licensed for 3 years are exempt from the degree requirement

Instructor license applicants must complete all education requirements for NJ broker licensure (150 hours per N.J.A.C. 11:5-2.1) not more than one year before passing the instructor exam and applying. NJ brokers licensed at least two years who completed the full 150 hours are deemed to have fulfilled instructor education requirements. Certain brokers need not take the 90-hour general broker course but must complete the two 30-hour broker prelicensure courses.

• ✓Applicants must complete 150 hours of broker education within one year prior to passing the instructor exam
• ✓NJ brokers licensed 2+ years who completed 150 hours are deemed to have met education requirements
• ✓NJ brokers (2 yrs) and out-of-state brokers (3 yrs) without the two 30-hour courses must complete those courses but may skip the 90-hour general course

Per N.J.S.A. 45:15-10.7, the instructor license renewal fee is $100.00 for a two-year term. The school license renewal fee is $400.00 for the first teaching location plus $200.00 for each additional licensed location. As a renewal prerequisite, instructors must attend a Commission-sponsored update seminar offered on at least two dates in different locations during the second year of each license term.

• ✓Instructor license renewal fee is $100.00 for a two-year term
• ✓School renewal fee is $400.00 first location plus $200.00 each additional location
• ✓Instructors must attend a Commission-sponsored update seminar as a renewal prerequisite

For prelicensure courses, the maximum teaching load ratio is one instructor or guest lecturer to 60 students per class. Each course must be supervised by a licensed instructor, with at least one licensed instructor present at all sessions. Additional instructors/guest lecturers may be used so long as guest lecturers do not teach more than 25 percent of required instruction. Broker prelicensure courses may use up to three instructors with one designated as responsible for quality.

• ✓Maximum ratio is one instructor/guest lecturer to 60 students per class
• ✓At least one licensed instructor must be present at all class sessions
• ✓Guest lecturers may not teach more than 25 percent of required instruction
• ✓Broker prelicensure courses may use up to three instructors with one designated responsible

To satisfactorily complete a prelicensure course, a student must receive a passing grade AND attend at least 80 percent of the class session hours required by N.J.A.C. 11:5-2.1. Upon satisfactory completion, the school must issue a Course Completion Certificate.

• ✓Satisfactory completion requires a passing grade and at least 80 percent attendance
• ✓The school must issue a Course Completion Certificate upon satisfactory completion

Real estate schools must comply with local and State regulations including fire codes, building and sanitation codes. A certificate from a proper authority evidencing compliance must accompany a school license application. Public adult education programs under a board of education and accredited colleges/universities whose facilities are State-approved are presumed to meet these requirements, provided real estate courses are held at the approved facility.

• ✓A compliance certificate from a proper authority must accompany a school license application
• ✓The Commission may require proof of ownership or a copy of the lease if the facility is rented
• ✓Public adult education programs and accredited colleges/universities with State-approved facilities are presumed compliant

Any additional teaching location must be licensed by the Commission and comply with all requirements applicable to licensed schools, directors and instructors. School directors have oversight responsibility for these locations. Prelicensure courses at such locations must be taught by licensed instructors or guest lecturers; continuing education courses must be taught by licensed instructors or approved CE instructors.

• ✓All additional teaching locations must be separately licensed by the Commission
• ✓School directors have oversight responsibility for all additional teaching locations
• ✓Prelicensure courses must be taught by licensed instructors or guest lecturers per N.J.S.A. 45:15-10.5

All schools must furnish to the Commission at initial licensure application their policies and regulations covering standards for satisfactory course completion, certificate issuance, conditions for student dismissal, and conditions for reinstatement. Any changes to these policies must be disclosed within 10 business days in writing or on a prescribed form.

• ✓School policies on completion standards, dismissal and reinstatement must be submitted at initial licensure
• ✓Any changes in school policy must be disclosed to the Commission within 10 business days in writing

An individual seeking approval as director of a licensed real estate school administered by a public adult education program or accredited college/university who is not a licensed instructor may still qualify if at least 18 years old, has good moral character (including absence of disqualifying convictions per N.J.S.A. 45:15-12.1), and has fulfilled all instructor education requirements within two years of applying.

• ✓Must be at least 18 years of age with good moral character
• ✓Must have no conviction for crimes specified under N.J.S.A. 45:15-12.1
• ✓Must fulfill all instructor education requirements within two years of applying

To enable the Commission to confirm courses include the required hours of instruction, every six months each school director must submit data on courses to be offered in the forthcoming six-month period, including starting/ending dates, days and hours of class sessions, and teaching locations. This information must use prescribed forms and be retained as permanent records for at least three years after submission.

• ✓Course data must be submitted every six months on prescribed forms
• ✓Submissions must include dates, days, hours, and teaching locations
• ✓Records must be retained for not less than three years after submission

All instructor applicants must pass an instructor license examination established by the Commission testing general real estate knowledge and teaching methods. After passing, and as a prerequisite to being issued a license, all applicants must attend a Commission-directed seminar covering Commission and licensing procedures, not exceeding one day in length.

• ✓Instructor applicants must pass an exam covering general real estate knowledge and teaching methods
• ✓After passing, applicants must attend a one-day maximum Commission-directed procedures seminar before licensure

Instructors initially licensed in the last six months of a two-year term are exempt from the seminar requirement for their first renewal. If an instructor fails to renew for two consecutive years or more after the last license expired, they must again fulfill all initial licensure qualifications. An exception applies for those who let a license expire due to subsequent employment in a NJ public agency dealing with real estate matters, if they reapply within one year of terminating that employment.

• ✓Instructors licensed in the last 6 months of a term are exempt from the first-renewal seminar
• ✓A lapse of 2+ consecutive years requires meeting all initial licensure qualifications again
• ✓Public-agency employment exception applies if reapplying within one year of termination

All tuition charged by a school must be specified separately. Additional fees for supplies, materials, or books must be itemized before any fees are paid, and such items become the property of the student upon payment. Tuition and fees must be set forth in a student contract that states the school's policy on returning unearned tuition upon dismissal, voluntary withdrawal, or hardship.

• ✓Tuition must be specified separately and additional fees itemized before payment
• ✓Purchased supplies/materials/books become the student's property upon payment
• ✓Tuition and fees must appear in a student contract with an unearned tuition return policy

Schools offering continuing education must maintain licensee attendance records per N.J.A.C. 11:5-12.8. For each prelicensure student, schools must permanently establish and maintain complete, accurate, detailed records for at least three years after matriculation, available for Commission inspection during school hours. Records must contain total instruction hours, completed study areas, attendance record, and names of supervising instructors and guest lecturers.

• ✓Prelicensure student records must be kept at least three years after matriculation
• ✓Records must include hours, study areas, attendance, and instructor/guest lecturer names
• ✓Records must be available for Commission inspection during regular school hours

The school director is responsible for properly closing the school. Within 10 days after ceasing operations, the director must return the school license, stamp, and all education certificates to the Commission and advise it in writing of the closing date. Within 30 days, the director must submit an affidavit certifying record custody location/custodian (records kept at least 3 years), the owner's contact information, that license and stamp were returned, that students were notified and unearned tuition returned, that signs/advertisements were removed/recalled, that telephone services were advised, and that no outstanding fees/fines/penalties are due.

• ✓Within 10 days of closing, return license, stamp, and certificates and notify the Commission in writing
• ✓Within 30 days, submit a certifying affidavit covering records, notification, tuition refunds, signage, and outstanding fees
• ✓Student records must be kept for not less than three years after closing

No school may use any name other than its licensed name for advertising. Schools may not advertise or imply they are 'recommended,' 'endorsed,' 'accredited,' or 'approved' by the Commission, but may indicate they are 'licensed' to conduct real estate education courses. No school may warrant or guarantee that a student will pass the State license examination as a result of taking its course.

• ✓Schools must advertise only under their licensed name
• ✓Schools may state they are 'licensed' but not 'recommended,' 'endorsed,' 'accredited,' or 'approved' by the Commission
• ✓Schools may not guarantee that students will pass the State exam

When a school fulfills all licensure requirements, a license is executed by the President of the Commission and attested by the Executive Director. School licensure is limited to the specific ownership and school locations identified on the license document(s).

• ✓School license is executed by the President and attested by the Executive Director
• ✓School licensure is limited to specific ownership and locations identified on the license

A person with a permanent disability or physical handicap that precludes attending regular classes may request Commission approval for special instruction, supported by sworn statements of doctors or knowledgeable persons and provided a school agrees. No school may, without Commission approval, accept as a transfer student any person concurrently enrolled with another licensed school, unless the student shows good cause in writing to the Commission.

• ✓Special instruction for disabled students requires Commission approval and supporting sworn statements
• ✓Transfer of a student concurrently enrolled elsewhere requires Commission approval or written good cause

A salesperson (referral) is limited to two activities: directing prospects to publicly available websites and sources of information on real estate, and referring prospects to the broker through whom they are licensed. If authorized by that broker, the referral salesperson may refer prospects to another licensee. When such an authorized referral is made, the referral salesperson must give written or electronic notice to their broker or the broker's designee (a broker-salesperson or salesperson) at the time the referral is made. All compensation to a salesperson (referral) must be paid by the broker through whom they are licensed, per N.J.S.A. 45:15-16.

• ✓A salesperson (referral) may only direct prospects to publicly available real estate websites/sources and refer prospects to their sponsoring broker
• ✓Referrals to another licensee require broker authorization and written/electronic notice to the broker or designee at the time of referral
• ✓All compensation to a salesperson (referral) must be paid by their sponsoring broker (N.J.S.A. 45:15-16)

A salesperson (referral) may not be employed by or licensed with more than one real estate broker at any given time. Additionally, no person may hold a salesperson (referral) license simultaneously with a real estate broker, broker-salesperson, or salesperson license in New Jersey. These provisions prevent dual licensing and ensure a single sponsoring broker relationship.

• ✓A salesperson (referral) may be licensed with only one broker at a time
• ✓A person cannot simultaneously be a salesperson (referral) and a broker, broker-salesperson, or salesperson in NJ

Salesperson (referral) licensees must not engage in prohibited brokerage activity for their broker or others, and must not receive compensation for such activity. Prohibited brokerage activity includes 13 enumerated items. Item 12, added by the January 2026 amendment, prohibits providing information on listings—whether in-person or through electronic communication including telephone and internet—beyond the limited information referral salespersons are permitted to provide under permitted activities (directing to public websites and sources).

• ✓Referral salespersons cannot engage in or be compensated for prohibited brokerage activity
• ✓Item 12: providing listing information beyond permitted public-source information is prohibited brokerage activity
• ✓The section was amended effective January 20, 2026, renaming 'referral agents' to 'salesperson (referral)'

No person may engage directly or indirectly in the business of a real estate broker, broker-salesperson, or salesperson, temporarily or otherwise, without being licensed. This includes advertising or representing oneself as authorized to act in such capacity or to engage in any activities described in R.S.45:15-3.

• ✓A license is required before engaging in any real estate brokerage business, even temporarily
• ✓No person may advertise or represent themselves as authorized to act as a broker, broker-salesperson, or salesperson without a license
• ✓Engaging indirectly in the business also requires a license

A person employed as a housing referral aide under a program funded pursuant to the Comprehensive Employment and Training Act of 1973, while performing those duties, is not deemed to be engaged in the business of a real estate broker, broker-salesperson, or salesperson.

• ✓Housing referral aides in CETA-funded programs are exempt from licensing while performing those duties
• ✓The exemption applies only while performing the aide's official duties

Confidential information is information from or concerning a principal that is acquired during the agency relationship, that the principal reasonably expects to be kept confidential or the firm knows is confidential, that would harm the principal if disclosed, and that the principal personally would not be obligated to disclose to the other party. It may be disclosed only if required by law or authorized by the principal.

• ✓Confidential information may be disclosed if required by law or authorized by the principal
• ✓Information the principal personally would be obligated to disclose to the other party is NOT confidential
• ✓Must be acquired during the course of the agency relationship

A designated agent applies when the buyer's agent and seller's agent are affiliated with the same brokerage firm or are the same broker. The firm designates one licensee to solely represent the buyer and another to solely represent the seller in a particular transaction.

• ✓Designated agents are appointed when both sides are within the same firm
• ✓One licensee solely represents the buyer, another solely represents the seller
• ✓Designation is made by the brokerage firm, including by a broker or managing broker

A disclosed dual agent is a brokerage firm (including its brokers and salespersons) that has an agency relationship and is working for BOTH the buyer and seller in the same transaction.

• ✓A disclosed dual agent works for both buyer and seller in the same transaction
• ✓The firm holds an agency relationship with both parties

A seller's agent works only with the seller and owes fiduciary duties. A transaction broker works with a buyer, seller, or both WITHOUT representing either party, has no agency relationship, and owes no fiduciary duties.

• ✓A seller's agent owes fiduciary duties and works only with the seller
• ✓A transaction broker has no agency relationship and owes no fiduciary duties
• ✓A transaction broker does not represent either party

Material information means the existence or non-existence of information (1) to which a reasonable person would attach importance in deciding how to proceed with a transaction, OR (2) that the agent knows or has reason to know the recipient regards as important, even if a reasonable person would not.

• ✓Includes information a reasonable person would find important
• ✓Also includes information the agent knows the recipient specifically regards as important
• ✓Covers both existence AND non-existence of information

A principal is a buyer or seller who has an agency relationship with a brokerage firm. A seller includes an actual or prospective landlord. A transaction involves purchase, sale, option, exchange, lease, or rental of real property; a prospective transaction does not exist until a written offer is signed by at least one party.

• ✓A principal must have an agency relationship with a brokerage firm
• ✓Seller includes landlords in rental/lease transactions
• ✓A prospective transaction does not exist until a written offer is signed by at least one party

The New Jersey Real Estate Commission is the regulatory body governing real estate practice. It regulates education, examination, and licensing of brokers, broker-salespersons, and salespersons; oversees the sale/lease of out-of-State properties to NJ residents via in-State promotional activities; investigates and adjudicates disciplinary actions; and administers the Real Estate Guaranty Fund.

• ✓The Commission regulates education, examination, and licensing of brokers, broker-salespersons, and salespersons
• ✓The Commission administers the Real Estate Guaranty Fund and adjudicates disciplinary actions against licensees
• ✓The Commission regulates in-State promotional activities for the sale/lease of out-of-State properties to NJ residents

The Commission may request that licensees and license applicants, including exam registrants, submit their social security numbers. Every such request must include or be accompanied by a notice explaining its purpose, whether disclosure is voluntary or mandatory, and its legal authorization.

• ✓Requests for SSNs must state the purpose(s) for which they will be used
• ✓The notice must state whether disclosure is voluntary or mandatory
• ✓The notice must state the request is authorized by this section and other applicable law

Business entity and sole proprietor broker licensees ('brokers') must establish an official e-mail address and provide it to the Commission at renewal through the online system. Once an internet-based updating system exists, brokers must enter their current e-mail within 30 days of being advised of its availability, and update within 10 days of any change.

• ✓Brokers must establish an official e-mail address and provide it at license renewal
• ✓Brokers must enter their e-mail within 30 days of being advised of the online system's availability
• ✓Brokers must update a changed official e-mail address within 10 days

A licensed salesperson (referral) who was previously licensed as a broker, broker-salesperson, or salesperson and has held the referral license for six immediately preceding years or less must complete graduated continuing education hours to qualify for reissuance of a broker, broker-salesperson, or salesperson license. The number of required hours depends on both the license being sought and the length of time held as a referral salesperson. All hours must be in core topics per N.J.A.C. 11:5-12.4 and completed within the two years immediately preceding application.

• ✓To relicense as salesperson after referral status less than 3 years: 12 hours CE, all core topics, within 2 years preceding application
• ✓To relicense as salesperson after referral status 3 to less than 6 years: 18 hours CE, all core topics
• ✓To relicense as broker/broker-salesperson after referral status less than 3 years: 18 hours CE, all core topics
• ✓To relicense as broker/broker-salesperson after referral status 3 to less than 6 years: 24 hours CE, all core topics

A licensed salesperson (referral) previously licensed as a broker, broker-salesperson, or salesperson who has held the referral license for more than six immediately preceding years must complete 30 hours of continuing education (24 hours in core topics per N.J.A.C. 11:5-12.4) AND pass the applicable broker's or salesperson's license examination to qualify for relicensure.

• ✓More than six years as referral salesperson requires 30 hours CE, of which 24 hours must be core topics
• ✓In addition to CE, the applicant must pass the broker's or salesperson's license examination as applicable

Every application for licensure as a real estate school must be accompanied by a $100 application fee plus a criminal history record check fee for all individual owners, partners, or officers/directors/owners of a controlling interest in a corporation. All these fees are non-refundable. Applicants must submit name, address, fingerprints, and written consent for a criminal background check. The commission may exchange fingerprint data with the State Bureau of Identification and FBI. The applicant bears all costs of the background check.

• ✓School license application fee is $100, non-refundable
• ✓Criminal history record check fee required for all owners/partners/officers and is non-refundable
• ✓Applicant must submit name, address, fingerprints, and written consent for background check
• ✓Division of State Police must promptly notify commissioner if a license holder is arrested after background check

All real estate school licenses expire on a date fixed by the commission, no more than two years from issuance. License fees vary depending on when in the two-year cycle the license is issued. Colleges, universities, and public adult education programs qualifying for licensure receive a license without any fee.

• ✓School licenses expire no more than 2 years from issuance
• ✓First 12 months: $400 first location, $200 each additional location
• ✓Second 12 months: $200 first location, $100 each additional location
• ✓Renewal fee: $400 first location, $200 each additional location
• ✓Accredited colleges/universities and public adult education programs pay no license or renewal fee

A licensed real estate instructor, broker, broker-salesperson, or salesperson who teaches an approved continuing education course offered by an approved provider receives CE credit toward their own license renewal. Regardless of how many times the same approved course is taught during a biennial term, the person only earns credit hours equal to what an attending licensee would earn for completing that course once.

• ✓Teaching an approved CE course earns credit toward the instructor's own broker/broker-salesperson/salesperson license renewal
• ✓Credit for teaching is limited to the credit hours conferred for completing the course one time per biennial term, no matter how many times taught

No salesperson or salesperson (referral) license may be issued to anyone under 18. Applicants must present a certificate of satisfactory completion of a real estate course at a Commission-licensed school, must pass the State exam and apply for the license within one year of course completion, and must certify possession of a high school education or equivalency.

• ✓Minimum age of 18 years to be issued a salesperson or salesperson (referral) license
• ✓Must present certificate of completion of prelicensure real estate course at a Commission-licensed school (unless waived)
• ✓Must pass State exam and apply for license within one year of course completion or retake the course and exam
• ✓Must certify high school education or equivalency

Before a salesperson or salesperson (referral) engages in any real estate brokerage activity, the broker and salesperson must enter into and sign a written agreement setting forth the terms of their business relationship. Required terms include the rate of compensation, a promise to pay commissions timely, post-termination compensation terms, and a provision that future changes must be in writing signed by both parties.

• ✓A signed written business relationship agreement must exist before any brokerage activity
• ✓Agreement must state the rate of compensation during affiliation with the broker
• ✓Broker must promise to pay commissions within 10 business days of receipt (or after funds clear the bank), or per another explicitly stated schedule
• ✓Agreement must address compensation on transactions/renewals that close after termination of affiliation
• ✓Future changes to the agreement are not binding unless in writing signed by both parties

A copy of the fully executed agreement must be provided to the salesperson upon commencement of affiliation, and the original must be retained by the broker as a business record per N.J.A.C. 11:5-5.5. Brokers must maintain copies of the agreement, explanations of failure to pay, and post-termination accountings, along with proof of delivery, for six years.

• ✓Copy of executed agreement must be given to salesperson at commencement of affiliation
• ✓Original must be kept by broker as a business record
• ✓Broker must retain agreements, non-payment explanations, and termination accountings with proof of delivery for six years

All compensation paid to brokers must be deposited into the broker's general business account within five business days of receipt (unless properly debited from escrow per N.J.A.C. 11:5-5.1(d)). If monies due a salesperson are not paid within 10 business days of the broker's receipt (or promptly after clearing), the broker must provide the salesperson a complete written explanation of the failure to pay.

• ✓Broker compensation must be deposited into the general business account within five business days of receipt
• ✓If salesperson monies are not paid within 10 business days, broker must give a complete written explanation of the failure
• ✓Escrow-debited commissions are an exception to the general business account deposit rule

Within 30 days of termination of a salesperson's affiliation with a broker, the broker must provide a complete written accounting of all monies due as of the termination date and/or that may become due in the future. If sums differ from the post-termination compensation clause, the broker must give a complete written explanation of any difference with the accounting.

• ✓Broker must provide a complete written accounting within 30 days of affiliation termination
• ✓Accounting must cover monies due at termination and monies that may become due in the future
• ✓Any difference from the written post-termination compensation clause requires a written explanation

If the Commission confirms a broker complied with this section, it will not further investigate a non-payment complaint unless accompanied by an arbitration decision equivalent or a court judgment obtained by the salesperson against the broker. Failure to pay awarded monies within 30 days of the effective date (unless appealed) subjects the broker to sanctions under N.J.S.A. 45:15-17. Licensees may only bring court actions for compensation as provided in N.J.S.A. 45:15-3.

• ✓Commission will not further investigate non-payment complaints against compliant brokers absent an arbitration decision or court judgment
• ✓Failure to pay awarded monies within 30 days of effective date subjects broker to sanctions under N.J.S.A. 45:15-17
• ✓'At the time the alleged cause of action arose' means when the brokerage services were rendered (e.g., when a property was listed)
• ✓Licensure at the time compensation was to be paid is not required to sue for that compensation

The Commission interprets 'employment agreement,' 'employ,' and 'employing broker' to permit either an employment relationship or an independent contractor relationship between a broker and a broker-salesperson, salesperson, or salesperson (referral). References to 'salesperson' include broker-salespersons, and 'non-payment of a commission' includes non-payment of other forms of compensation.

• ✓A broker-salesperson relationship may be either employment or independent contractor
• ✓References to 'salesperson' in the section include broker-salespersons
• ✓'Non-payment of a commission' includes non-payment of other forms of compensation