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Bill > S4889
NJ S4889
NJ S4889Clarifies current law addressing commissions paid to limited liability companies formed by real estate salespersons or broker-salespersons.
summary
Introduced
11/20/2025
11/20/2025
In Committee
12/11/2025
12/11/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill updates New Jersey law addressing the compensation of a real estate salesperson or broker-salesperson who has created a limited liability company pursuant to State law. Currently, no real estate salesperson or broker-salesperson can accept a commission or valuable consideration from any person except the employer or licensed broker with whom the salesperson or broker-salesperson is under contract. The bill clarifies that a real estate salesperson or broker-salesperson may accept the commission or other valuable consideration from the limited liability company or other entity without affecting the business affiliation between a broker and salesperson or broker-salesperson defined in the written agreement between the broker and salesperson or broker-salesperson.
AI Summary
This bill clarifies existing New Jersey real estate law regarding how real estate salespersons or broker-salespersons can receive commissions through limited liability companies (LLCs). Currently, real estate professionals are prohibited from accepting commissions from anyone except their employer or contracting broker. The bill modifies this restriction by explicitly allowing salespersons or broker-salespersons to form an LLC and receive commissions through that entity without jeopardizing their business affiliation with their employing broker. The bill requires the New Jersey Real Estate Commission to create a registration process for these LLCs and other entities that receive commissions. Specifically, the legislation amends an existing statute to state that a real estate professional can accept commission payments from their LLC without affecting the written agreement between the salesperson/broker-salesperson and their employing broker. This change provides more flexibility for real estate professionals in how they structure their compensation and business relationships while maintaining existing regulatory oversight.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Substituted by A5978 (on 12/22/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S4889 |
| Analysis - Statement 12/11/25 SEG Statement | https://pub.njleg.gov/Bills/2024/S5000/4889_S1.PDF |
| BillText | https://pub.njleg.gov/Bills/2024/S5000/4889_I1.HTM |
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