11:5-4.1 INSURANCE
shall be in core topics as set forth in N.J.A.C. 11:5-12.4 within the two years immediately preceding application.
2. To qualify for relicensure as a salesperson, a person who has been licensed as a referral agent three years or more, but less than six years, shall complete 18 hours of continuing education, all of which shall be in core topics as set forth in N.J.A.C. 11:5- 12.4 within the two years immediately preceding application.
3. To qualify for relicensure as a broker or broker-salesperson, a person who has been licensed as a referral agent for less than three years shall complete 18 hours of continuing education within two years immediately preceding application, all of which shall be in core topics as set forth in N.J.A.C. 11:5-12.4.
4. To qualify for relicensure as a broker or broker- salesperson, a person who has been licensed as a referral agent for three years or more, but less than six years, shall complete 24 hours of continuing education within the two years immediately preceding application, all of which shall be in core topics as set forth in N.J.A.C. 11:5-12.4.
(e) A licensed referral agent who was previously licensed as a broker, broker-salesperson or salesperson who has been licensed as a referral agent for more than the six immediately preceding years shall, in order to qualify for re-licensure as a broker, broker-salesperson or salesperson, complete 30 hours of continuing education, 24 hours of which shall be in core topics as set forth in N.J.A.C. 11:5-12.4, and shall pass the broker’s license examination or the salesperson’s license examination, as applicable.
New Rule, R.2012 d.006, effective January 3, 2012. See: 43 N.J.R. 1791(a), 44 N.J.R. 86(b).
SUBCHAPTER 4. EMPLOYMENT PRACTICES/OFFICE AND LICENSEE SUPERVISION
11:5-4.1 Employment agreements; commissions; accounting to salespersons and referral agents; actions for collection of compensation
(a) No salesperson or referral agent may commence operations as such for a broker and no broker may authorize a salesperson or referral agent to act as such on his or her behalf until a written agreement as provided in this subsection has been signed by the broker and salesperson or referral agent. Prior to an individual’s commencement of activity as a salesperson or referral agent under the authority of a broker, the broker and salesperson or referral agent shall both sign a written agreement which recites the terms under which the services of the salesperson or referral agent have been retained by the broker. Such terms shall include, but need not be limited to, the following:
1. The rate of compensation to be paid to the salesperson or referral agent during his or her affiliation with the broker;
2. A promise by the broker to pay to the salesperson or referral agent his or her portion of commissions earned within 10 business days of their receipt by the broker or as soon thereafter as such funds have cleared the broker’s bank, or in accordance with another payment schedule explicitly set forth in the employment agreement;
3. The rate of compensation payable to the salesperson or referral agent on transactions which close and, if applicable, on renewals which occur subsequent to the termination of the salesperson’s or referral agent’s affiliation with the broker; and
4. A provision that any future changes to the agreement will not be binding unless the changes are contained in a writing signed by both parties.
(b) A copy of the fully executed agreement shall be provided to the salesperson or referral agent upon the commencement of his or her affiliation with the broker, and the original thereof shall be maintained by the broker as a business record in accordance with N.J.A.C. 11:5-5.5.
(c) All compensation paid to brokers shall, unless debited from funds held in escrow in accordance with N.J.A.C. 11:5- 5.1(d), be deposited into the general business account of the broker within five business days of their receipt by the broker.
(d) In the event that any monies due a salesperson or referral agent under the terms of the written agreement with their broker are not paid within 10 business days of the broker’s receipt of such funds or promptly thereafter upon their having cleared the broker’s account, the broker shall provide to the salesperson or referral agent a complete and comprehensive written explanation of the failure to pay such monies.
(e) Upon the termination of the affiliation of a salesperson or referral agent with a broker, the broker shall make a complete accounting in writing of all monies due the salesperson or referral agent as of the date of termination and/or which may become due in the future. In the event any sums so accounted for are not in accord with the terms of the post-termination compensation clause in the written agreement between the broker and the salesperson or referral agent, the broker shall give a complete and comprehensive written explanation of any difference to the salesperson or referral agent with the accounting. Such accounting shall be delivered to the salesperson or referral agent not later than 30 days after termination.
(f) Copies of all written agreements as described in (a) above, of all written explanations of the failure to pay compensation due a salesperson or referral agent on a timely basis as described in (e) above, and of all accountings and written explanations regarding compensation due a salesperson or referral agent subsequent to the termination of their affiliation with a broker as described in (f) above shall be maintained by the broker, with adequate proof of the delivery of the same to the salesperson or referral agent, for a period of six years.