Understanding Referral Agent Licensing in New Jersey
New Jersey’s Real Estate Commission offers real estate licenses in essentially two categories: Active licenses, such as salesperson, broker-salesperson, and brokers, and Referral agents.
The benefit of a referral agent license is that the licensee still maintains their real estate license, but does not have to pay most of the expenses required of active licensees, such as errors & omission insurance, Board of Realtors dues, MLS membership fees, etc.
However, the Real Estate Commission requires the referral agent to resign from the brokerage where their active license is held and join a licensed company that is ONLY for referral agents. It is no longer legal for a real estate brokerage to have both salespersons and referral agents on the same roster.
Thus your official title once you join Garden State Referral will be “Salesperson Licensed With Real Estate Referral Company (SLWRERC).
Just Send the Lead - We Do the Work
You can still earn real estate commission as a SLWRERC! You just cannot take an active role in the transaction.
On the other hand, you don’t have to spend time driving around showing properties, sitting open houses, or spending your own money advertising yourself and your properties!
For example:
Your CPA friend asks you to help her find an investment property. . .
Another parent on your son’s soccer team knows you are in real estate and says he needs to sell his home and buy a larger one . . .
Your brother in North Carolina tells you he has a new job in Texas and has to move.
All you do is submit your referral form to your Garden State Referral manager. He will ask if you have a specific agent you would like to handle the transaction, or will find a very well qualified agent and will negotiate a referral fee.
You literally don’t have to do another thing!
We will track the progress of the lead and when it closes, will send you your referral fee.
We have one of the most generous commission plans in the industry!
When your referral is handled by one of our in-network agents you earn 90% (Yes. . . 90!) of the referral commission. An in-network broker is one who has created a partnership agreement with Garden State Referrals.
When it is handled by an out-of-network agent, your commission split is 80% of our referral commission.
Referral fees are negotiable but are typically 25% of the commission the agent who handles the sale earns.
For example:
We refer your client to an in-network agent, who then makes a $500,000 sale. The commission is 3%.
The broker to whom we referred your client earns $15,000 and sends Garden State Referral 25% of that--$3,750. We pay you 90%--$3,375 of that amount.
Not bad for simply filling out and sending us our referral form!
Costs to Join our Team of Garden State Superstar Referral Agents
$25 License transfer fee if you are currently a referral agent with another firm (payable to the state).
$25 + $50 License transfer fee plus change of license fee (payable to the state) if you are currently a licensed salesperson, broker, or broker-salesperson.
$160 New license fee (payable to the state) if you just qualified for your real estate license and are not joining from another broker.
$125 Annual Referral Agent fee payable to Garden State Referral for one year.
$198 Sign up for two years and your cost averages only $99 per year!
To summarize:
1 : If you are joining us directly from passing your state exam and not from another broker, it will cost you a total of $285 for one year or $358 for two years.
2 : If you are a referral agent with another broker, it will cost you $175 (223 for 2 years) to join us.
3 : If you are joining us and have been a broker/broker-salesperson with your previous firm, it will cost you $200 (298 for 2 years) to join us.
Your SLWRERC license must be renewed by June 30th of each odd-numbered year at a cost from the state of $100, but you do not have to complete and CE credits.
NOTE:
If you let your real estate license lapse and did not renew it on June 30th of the last odd-numbered year, the NJ REC will charge a reinstatement fee of $150 for salespersons and referral agents or $250 for broker-salesperson and broker. You can only be reinstated if you submit the application before the next renewal period is over. For example, your license lapsed on June 30th, 2023. You must apply for reinstatement before June 30th, 2025. After July 1st, 2025 you must start your pre-licensing process from the beginning.
Ready to make the move?
Garden State Referals Academy helps agents stay licensed affordably with simple referrals, minimal fees, and nationwide real estate earning opportunities.