Bill > A5978

This bill clarifies existing New Jersey real estate law regarding commissions for salespersons and broker-salespersons who form limited liability companies (LLCs). Currently, real estate professionals are prohibited from accepting commissions from anyone other than their employing broker. The bill modifies this restriction by explicitly allowing salespersons and broker-salespersons to form LLCs or other entities to receive commissions, and to accept payment from these entities, without compromising their existing business affiliation with their employing broker. The bill also requires the New Jersey Real Estate Commission to create a registration process for these LLCs and entities that receive commissions. The key change is that the commission can now be paid to the LLC of the real estate professional, rather than directly to the individual, while maintaining the original professional relationship with the employing broker. This provides more flexibility for real estate professionals in how they structure their business and receive compensation, without altering the fundamental employer-employee relationship in the real estate brokerage industry.

Business and Industry

https://www.njleg.state.nj.us/bill-search/2024/A5978