N.J.A.C. 11:5-1.3 — Definitions

The following words and terms, as used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. "Act" means the Real Estate Brokers and Salespersons Act, N.J.S.A. 45:15-1 through 45:15-42. "Broker of record" means the person duly licensed as a real estate broker in New Jersey and designated as the broker in charge of and responsible for all real estate brokerage activity performed by or on behalf of a business entity duly licensed as a real estate broker in New Jersey. "Commission" means the New Jersey Real Estate Commission as set forth at N.J.S.A. 45:15-5. "Employing broker" means a natural person duly licensed as a real estate broker in New Jersey conducting brokerage activity as a sole proprietor. "Real estate brokerage activity" or "brokerage activity" means the sale, exchange, purchase, or rental, the listing for sale or offering or attempting to negotiate a sale, exchange, purchase, or rental of real estate or an interest therein, or collecting or offering or attempting to collect rent for the use of real estate or soliciting for prospective purchasers or assisting or directing in the procuring of prospects or negotiating or closing of any transaction that does, or is contemplated to, result in the sale, exchange, leasing, renting, or auctioning of any real estate or negotiating, or offering or attempting or agreeing to negotiate a loan secured or to be secured by a mortgage, including a mortgage on commercial real estate, or other encumbrance upon or transfer of any real estate for others, or, for pecuniary gain or expectation of pecuniary gain, conducting a public or private competitive sale of lands or any interest in lands. "Real estate broker" or "broker" means a person, firm, or corporation who, for a fee, commission, or other valuable consideration, or by reason of a promise or reasonable expectation thereof, engages in real estate brokerage activity. This term shall also include any person, partnership, association, or corporation employed or contracted by or on behalf of the owner or owners of lots or other parcels of real estate, at a stated salary, or upon a commission, or upon a salary and commission, or otherwise, to sell such real estate, or any parts thereof, in lots or other parcels, and who shall sell or exchange, or offer or attempt or agree to negotiate the sale or exchange, of any such lot or parcel of real estate. A real estate broker shall also include any person, firm, or corporation who supervises a real estate referral company. "Real estate broker-salesperson" means any natural person who is qualified to be licensed as a real estate broker but who, for compensation, valuable consideration, commission, or other thing of value, or by reason of a promise or reasonable expectation thereof, is employed or contracted by and operates under the supervision of a licensed real estate broker to perform the functions of a real estate salesperson. "Real estate referral company" means a business entity established and supervised by a licensed real estate broker, separate and apart from any business entity maintained by the licensed real estate broker to conduct real estate brokerage-related activities other than the referral of prospective consumers of real estate brokerage services to that broker, for the purpose of employing or contracting licensed salespersons who strictly engage in the referral of prospects for the sale, purchase, exchange, leasing, or rental of real estate or an interest therein solely on behalf of the supervising real estate broker. "Real estate salesperson" means any natural person who, for compensation, valuable consideration, commission, or other thing of value, or by reason of a promise or reasonable expectation thereof, is employed or contracted by and operates under the supervision of a licensed real estate broker to engage in real estate brokerage activity or who is employed or contracted by a licensed real estate broker to sell or offer to sell lots or other parcels of real estate, at a stated salary, or upon a commission, or upon a salary and commission, or otherwise to sell real estate, or any parts thereof, in lots or other parcels, or in the case of a salesperson licensed with a real estate referral company refers prospective consumers of real estate brokerage services to a particular broker. A real estate salesperson shall include a salesperson licensed with a real estate referral company unless otherwise indicated. "Real estate salesperson licensed with a real estate referral company" or "salesperson (referral)" means any natural person employed or contracted by and operating under the supervision of a licensed real estate broker through a real estate referral company whose real estate brokerage-related activities are limited to referring prospects for the sale, purchase, exchange, leasing, or rental of real estate or an interest therein.