SENATE ECONOMIC GROWTH COMMITTEE

STATEMENT TO

SENATE, No. 4889

STATE OF NEW JERSEY

DATED: DECEMBER 11, 2025

      The Senate Economic Growth Committee reports favorably Senate Bill No. 4889.

      As reported, this bill updates current law addressing the compensation of a real estate salesperson or broker-salesperson who has created a limited liability company (LLC) 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 LLC 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.