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Bill > S1419

NJ S1419

NJ S1419
Clarifies current law addressing commissions paid to limited liability companies formed by real estate salespersons or broker-salespersons.

summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
01/13/2026
Dead
Signed/Enacted/Adopted
01/13/2026

Introduced Session

2026-2027 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 New Jersey law regarding how real estate salespersons and broker-salespersons, who have formed a limited liability company (LLC) or other legal entity, can receive their commissions. Currently, these professionals can only accept payment directly from their licensed broker or employer. This bill amends the law to allow them to receive their commission or other valuable compensation from their own LLC or entity, without this arrangement impacting their underlying business relationship with their employing or contracting broker, as defined in their written agreement. The bill also mandates that the New Jersey Real Estate Commission establish a registration process for these LLCs and other entities that will be receiving commissions.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Withdrawn Because Approved P.L.2025, c.271. (on 01/13/2026)
(2 Companion Bills)

bill text

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Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2026/S1419
BillText https://pub.njleg.gov/Bills/2026/S1500/1419_I1.HTM
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