About the Real Estate Commission (2024)

Established in 1921, the New Jersey Real Estate Commission was created to administer and enforce New Jersey's real estate licensing law, N.J.S.A. 45:15-1 et seq. The Commission consists of five members who have been licensed as New Jersey real estate brokers for at least ten years, two public members, and one representative of an appropriate governmental department.The Commission meets approximately 36 times each year, and frequently acts as a quasi-judicial body rendering decisions on contested license applications and disciplinary actions. It also promulgates rules interpreting and implementing the provisions of the license law and establishing standards of practice for the real estate brokerage profession.

All applicants for licensure as a broker or salesperson must meet the standards for good character and fulfill the educational requirements for licensure established by law, and pass an examination conducted under the supervision of the Commission. The content of the prelicensure education courses is prescribed in regulations adopted by the Commission. The Commission also licenses the schools which provide the courses and the instructors who teach them. Instructors must fulfill educational requirements and pass an examination to qualify for licensure.

The Commission is empowered to conduct investigations, to hold hearings and to revoke licenses and/or otherwise sanction individuals and firms for violations of the license law or its administrative rules. Violations which can result in severe sanctions include commingling or misappropriating escrow monies, making substantial misrepresentations, being convicted of a theft offense, procuring a license by fraud or deceit, and "any conduct which demonstrates unworthiness, incompetency, bad faith or dishonesty."

The Commission also administers and enforces the Real Estate Sales Full Disclosure Act. This law regulates the marketing and sale in New Jersey of real estate interests located in other states and countries. Persons who wish to market such properties in New Jersey must first register their projects with the Commission. In order to qualify for registration, the applicant must demonstrate to the satisfaction of the Commission that they can convey good title to the properties, that full and accurate disclosure of all pertinent information will be made to prospective New Jersey purchasers, and that adequate financial assurances have been established to insure completion of all promised improvements.

Among its many other functions, the Commission also administers the Real Estate Guaranty Fund. This Fund was established by law to protect persons aggrieved by the embezzlement, conversion or unlawful obtaining of property by licensees in a real estate brokerage transaction. It is fully funded by assessments upon licensees and applicants. No taxpayer dollars are credited to the fund.