Can I offer a referral program for my customers in New Jersey? What are the requirements?

Referral Program Requirements in New Jersey

If you are planning to offer a referral program for your customers in New Jersey, you must comply with the regulations set forth by the New Jersey Real Estate Commission.

According to NJAC 11:5-6.5, every person engaged in the business of referring, for a fee, prospective residential tenants to possible rental units shall be licensed in accordance with the New Jersey Real Estate License Act, 45:15-1 et seq. Additionally, every licensee subject to this section shall enter into a written contract with the prospective tenant and give such person a copy of the contract. The contract shall accurately state the services to be performed by the agency, the fee charged, the date and duration of the contract, the affirmative actions required of the prospective tenant to utilize the service, the refund policy, and a statement that the business is licensed by the New Jersey Real Estate Commission.

Furthermore, no licensee shall advertise or refer to a prospective residential tenant to a non-existent address, a property not verified as available, or a possible rental unit or location for which the licensee does not have the lessor’s, or the duly authorized agent of the lessor’s, oral or written consent to refer prospective tenants. Every licensee subject to this section shall verify the continuing availability of the rental unit with the lessor or agent as follows: all units advertised in media shall be verified each day the advertisement appears, and all units to which prospective tenants are referred shall be verified as available every three working days.

Prior to the prospective tenant obtaining rental property through the services of the licensee, no licensee shall charge or accept a fee in excess of $25.00 unless any fee charged, collected or received in excess of $25.00 is deposited promptly in the broker’s escrow account until the services described by the contract are fully performed, or the licensee posts with an approved escrow agent cash security in an amount approved by the Commission.

Conclusion

To offer a referral program for your customers in New Jersey, you must comply with the regulations set forth by the New Jersey Real Estate Commission. You must be licensed, enter into a written contract with the prospective tenant, verify the continuing availability of the rental unit, and not charge or accept a fee in excess of $25.00 unless certain conditions are met.

Jurisdiction

New Jersey

• General