Real Estate Agent Question-NJ - Posted by Doug

Posted by John Merchant on October 15, 2003 at 12:52:10:

First, no RE Agent, in any state, is allowed to operate just solo, by himself, with NO Broker…so you’d be licensed to operate as an agent in some licensed broker’s shop. And not otherwise.

So YES, you have to operate with, under a Broker. Who owns all the business, listings, deals done by ANY agent in his/her brokerage. Who then splits income with his/her agents as per their internal agreement.

Therefore, it would behoove you to do some shopping for a Broker to see whose shop you might like to be in, who you could work with…and who you could not!

This is a very important relationship since the broker owns all the business, has to know & approve of all deals you might do as an agent or with any RE in that state, etc…so it’s worth spending your time doing early homework to find the right place for you to hang your license.

Secondly, as to out-of-state activity, most states operate under some mutual reciprocity, whereby agent in State A can work with a property or client in State B, without being hassled for unlicensed activity.

BUT,I’d want to check with the particular “other” state to see what their RE Commission says, what they’d want you to do, etc.

I know an agent who actually spent a night or two in the “other” state’s JAIL (!) for showing a property in that state with no license there. I’m confident he wishes he’d asked some hard questions first.

This might just be enough to mess up an otherwise great day.

Real Estate Agent Question-NJ - Posted by Doug

Posted by Doug on October 15, 2003 at 05:25:05:

I am in NJ and considering getting a real estate license. Does one need a sponsoring broker? At what point could you become the broker?
Also, what about out of state transactions. If I had a family who wanted to buy a second home in another state, could I act as a buyers agent in some way and capture a small commission?


Re: Real Estate Agent Question-NJ - Posted by Nate(DC)

Posted by Nate(DC) on October 16, 2003 at 12:03:34:


Regarding the out-of-state issue, the way I would approach is to call a broker in the area where they want to buy and make the introduction in exchange for a “referral fee”. This is legal and is done all the time for deals in states where the agent is not licensed (for example, I have a DC and MD license, if I have someone that wants to buy a beach house in DE I send them to an agent with my company’s Delaware office and get a referral fee).

It is NOT legal for you to act as an agent in a state where you are not licensed. Reciprocity typically only extends to getting a license, not to acting without a license. So your NJ license might make it easier to get a license in ____, but you cannot act as an agent there without being licensed. And it’s probably not worth getting licensed for one or two deals. You can, at best, get a referral fee.