LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 4947

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: JUNE 12, 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 Increases

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 fines from the lack of compliance with the bill’s provisions by continuing education course providers. The bill establishes a penalty of not more than $5,000 for the first violation and a penalty of not more than $10,000 for any subsequent violation.

 

 

BILL DESCRIPTION

 

      This bill revises the continuing education requirements for individuals licensed by the New Jersey Real Estate Commission in the 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 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 revises the methods of delivery and assessment of continuing education courses.

      The bill revises the membership of the Volunteer Advisory Committee to include approved instructors of continuing education courses. Under the bill, the commission is required to approve or deny continuing education courses, course providers, and course instructor applications.

      The commission is authorized to investigate a continuing education course, course provider, or course instructor suspected of violating the provisions of the bill. The commission may place on probation, suspend, or revoke the approval of a course, course provider, or course instructor found by the commission to have violated the provisions of the bill or may, as an alternative to such probation, suspension, or revocation, impose on a course provider or course instructor a penalty of not more than $5,000 for the first violation and a penalty of not more than $10,000 for any subsequent violation.

      The bill’s provisions are to apply to biennial real estate license terms commencing on or after the bill’s effective date.

 

 

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 fines from failed compliance with the bill’s provisions by continuing education course providers. The bill establishes a penalty of not more than $5,000 for the first violation and a penalty of not more than $10,000 for any subsequent violation.

 

      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.).