PERMISSIBLE AND PROHIBITED ACTIONS OF UNLICENSED ASSISTANTS AND SUPPORT STAFF
Unlicensed assistants and support staff are valuable employees in a real estate office. However, given the licensure requirements
imposed by law, N.J.S.A. 45:15-1 and 15-3, there are parameters to the activities in which unlicensed persons may lawfully
engage. The REC has reviewed an earlier publication of the “Dos and Don’ts” of unlicensed assistants and support staff and
believes these guidelines bear repeating to enable licensees and unlicensed individuals to avoid potential violations. Please
note that the following lists do not define every permitted or prohibited activity but are intended to offer
reasonable guidelines for licensees to follow:
An unlicensed assistant or secretary CAN:
*Answer phones and forward calls.
*Process and submit listings and changes to a MLS
system.
*Follow-up on loan applications after contracts
have been fully executed.
*Set up file procedures, track and secure
documents, etc.
*Have keys made for company listings at the
direction of a licensee.
*Write ads for approval of a licensee, place ads as
directed.
*Keep records of, and deposit payments of earnest
money, security deposits and rent.
*Type contract forms for approval of a licensee.
*Monitor files and report findings to a licensee.
*Compute commission checks.
*Place signs on properties.
*Order items or inspections as directed by a
licensee.
*Prepare flyers and promotional material for
approval by a licensee.
*Act as a courier for delivering documents or
delivery of contracts or closing materials).
*Schedule appointments with the seller or seller’s
agent in order for a licensee to show listed
property.
An Unlicensed assistant or secretary CANNOT:
*Make cold calls by telephone or in person to
potential listers, purchasers, tenants, or landlords.
*In the absence of a licensee, host open houses,
booths at home shows, malls or fairs, or distribute
promotional literature at such locations.
*Prepare promotional material or ads without the
review and approval of a licensee.
*Show property.
*Answer any questions on listings, title, financing
or closings from either the public or other
licensees.
*Discuss or explain a contract, listing, lease
agreement or other real estate document with
anyone outside the firm.
*Work as a licensee/secretary in one firm and do
real estate related activities with that firm, while
licensed with another firm.
*Negotiate or agree to any commission,
commission split, management fee or referral fee
on behalf of a licensee.
*In addition, the compensation of a personal
assistant or secretary should not be based on the
success of their activity, i.e. a percentage of
commission, but should be directly related to the
duties the non-licensee is performing. If a licensee
is using another licensee to act as their personal
assistant/secretary, both should be aware that they
are employees or independent contractors of their
broker and compensation must be paid by the
broker.
*All licensees are cautioned to research and adhere
to Federal and State Income Tax and Employment
requirements.
*Make telephone calls for the purpose of collecting
or attempting to collect late rent payments.
Finally, inspections: Because it is highly likely that during the course of an inspection questions will be raised by the prospective
purchaser and/or the owner of the property which only a licensee would be qualified to answer, it has been determined that an
unlicensed individual should not be present during such inspections in the absence of a licensee. However, if for security/safety
reasons a licensed individual requests their assistant accompany them to an inspection, there would clearly be no impropriety.
It remains the position of the Commission that unlicensed individuals should not answer any questions on listings,
even if the questions only inquire about objective information contained in preprinted material about the property.
It is helpful to recall that unlicensed persons may not host open houses in the absence of a licensee.
* RLK/PCC updated Jan 2015
