Real Estate Teams Update

BY BRUCE SHAPIRO

Over the years, there have been many questions about the operation of real estate teams in New Jersey as they become more popular within the real estate profession. While these are not new regulations, the NJ Real Estate Commission has adopted Bulletin 22-07 to provide guidance and clarification as to how real estate teams should operate.

Bulletin 22-07 includes important guidance on how real estate teams can conduct business in New Jersey under the existing statutes and regulations of the REC. It includes information on broker supervision requirements, how members of a real estate team can be paid commission payments through their broker, the office location requirements where teams can conduct business, and the obligation to comply with the advertising rules.

New Jersey Realtors® urges members of real estate teams, brokers who have teams operating within their offices, or those Realtors® interested in forming or joining a real estate team to review the contents of Bulletin 22-07 to ensure they’re in compliance with all relevant statutes and rules.

Visit njreal.to/real-estate-teams for more information.

Items Discussed in Bulletin 22-07

• Brokers of record are responsible for supervising all licensees within their office, regardless of whether they are a member of a team or have a separate team leader.

• Licensees can only accept commission payments through their broker of record, not from their team leader or a member of their team.

• Teams cannot operate out of separate, satellite offices unless properly licensed with the REC in line with applicable statutes and regulations. Teams must be supervised by a broker of record or broker-salesperson, and they must maintain normal business hours.

• All applicable advertising regulations must be complied with by real estate teams including the name of the broker on record with the REC.

• Team webpages are permitted, as long as they comply with the Real Estate Licensing Act and REC regulations.