LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 4947

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: JUNE 9, 2026

 

 

SUMMARY

 

Synopsis:

Revises continuing education requirements for real estate licensees and regulation of certain real estate continuing education providers, instructors, and courses.

Type of Impact:

Annual State expenditure increase; potential annual State revenue increase.

Agencies Affected:

New Jersey Department of Banking and Insurance.

 

 

Office of Legislative Services Estimate

Annual Fiscal Impact

 

 

State Expenditure Increase

Indeterminate

 

Potential State Revenue Increase

Indeterminate

 

 

·         The Office of Legislative Services (OLS) finds that the bill will modestly increase State expenditures by indeterminate amounts for the New Jersey Real Estate Commission in the New Jersey Department of Banking and Insurance to update and approve licensing and continuing education requirements.

 

·         Indeterminate State revenue increases may periodically occur from forfeited bonds from failed compliance with the bill’s provisions by continuing education course providers.

 

 

BILL DESCRIPTION

 

      This bill revises the continuing education requirements for individuals licensed by the New Jersey Real Estate Commission in the New Jersey Department of Banking and Insurance and makes certain changes to the regulation of continuing education providers, instructors, and courses.

      The bill increases continuing education hours required for a salesperson licensed with a real estate referral company to qualify for licensure as a salesperson and increases the number of hours required for a licensed broker, broker-salesperson or salesperson who has been a salesperson licensed with a referral company to qualify for re-licensure as a broker, broker-salesperson, or salesperson. The bill also increases the amount of continuing education required as a condition of biennial license renewal for brokers, broker-salespersons, and salespersons, and imposes additional hours of continuing education on certain timely topics, as determined by the New Jersey Real Estate Commission. The bill also requires salespersons licensed with a real estate referral company to complete two hours of continuing education as a condition of biennial license renewal.

      The bill revises the methods of delivery and assessment of continuing education courses. The bill exempts certain real estate schools from the requirement that a school’s director is to be licensed as a real estate instructor and approved by the commission. Specifically, a real estate school is not required to be under the management and supervision of a licensed real estate instructor if the school provides proof to the commission of at least 20,000 successful completions by real estate licensees of continuing education courses provided by the school in the previous biennial license term.

      The bill revises the membership of the Volunteer Advisory Committee to include approved instructors of continuing education courses. A member of the committee approved by the commission as an instructor of continuing education is prohibited from approving the member’s own continuing education course application.

      Under the bill, continuing education course providers approved by the commission are required to post a $15,000 bond to the commission, which is to be forfeited if the commission determines that the provider failed to comply with the provisions of the bill.

      Additionally, continuing education course providers are authorized to approve their own continuing education instructors and courses if the provider provides proof to the commission of at least 20,000 successful completions by real estate licensees of continuing education courses provided by the school in the previous biennial license term. Additionally, individuals applying to the commission for approval as a continuing education instructor are to meet certain educational and experience requirements. To be eligible for reapproval as a continuing education instructor, instructors are required to provide proof of the instruction of two approved continuing education courses in the previous biennial license term.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that the bill will modestly increase State expenditures by indeterminate amounts for the New Jersey Real Estate Commission in the New Jersey Department of Banking and Insurance to update and approve licensing and continuing education requirements. Further, periodic indeterminate revenue increases may occur from forfeited bonds from failed compliance with the bill’s provisions by continuing education course providers.

      Background: The New Jersey Real Estate Commission, a division of the New Jersey Department of Banking and Insurance, was created to administer and enforce New Jersey's real estate licensing law. In FY 2025, the commission had 31 full time employees. The commission issues licenses to real estate brokers and salespersons, real estate schools, and course instructors. It also establishes standards of practice for the real estate brokerage profession and regulates and registers out-of-state sales through New Jersey brokers. According to the FY 2027 Governor’s Budget, in FY 2025 there were 96,541 licensed brokers and salespersons, 941 licensed instructors, and 7,100 candidates examined. In FY 2025, an estimated $3.2 million was expended to regulate the real estate industry.

Section:

Law and Public Safety

Analyst:

Kristin Brunner Santos

Lead Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).