An Act concerning compensation for certain broker-salespersons and salespersons and amending R.S.45:15-16.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.45:15-16 is amended to read as follows:
45:15-16. a. No real estate salesperson or broker-salesperson shall accept a commission or valuable consideration for the performance of any of the acts herein specified, from any person except his employer or contracting broker, who must be a licensed real estate broker.
b. [A] Notwithstanding any provision of R.S.45:15-1 through R.S.45:15-29.5, or any other law, rule, or regulation to the contrary, a real estate salesperson or broker-salesperson may form a limited liability company pursuant to the "Revised Uniform Limited Liability Company Act," P.L.2012, c.50 (C.42:2C-1 et seq.), or any other entity permitted by law, in order to receive a commission or other valuable consideration pursuant to subsection a. of this section, and the real estate salesperson or broker-salesperson may accept payment of the commission or other valuable consideration or any part thereof from the limited liability [corporation] company or other entity without affecting the business affiliation between the employing or contracting broker and salesperson or broker-salesperson defined in the written agreement between the employing or contracting broker and the salesperson or broker-salesperson as provided in subsection b. of P.L.2018, c.71 (C.45:15-3.2). [Notwithstanding the formation of such an entity, a salesperson or broker-salesperson who satisfies the requirements of subparagraph (K) of paragraph (7) of subsection (i) of R.S.43:21-19 shall not be considered an employee pursuant to that law.]
c. The New Jersey Real Estate Commission shall create a registration process for a limited liability company and other entity to receive a commission or other valuable consideration pursuant to [subsection] subsections a. and b. of this section.
(cf: P.L.2021, c.281, s.1)
2. This act shall take effect immediately.
STATEMENT
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.
Clarifies current law addressing commissions paid to limited liability companies formed by real estate salespersons or broker-salespersons.