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    Can NJ Agents Offer Gifts, Rebates or a "Free Home Valuation"?

    The short answer: Yes, within limits. New Jersey licensees may advertise free or discounted services and products, such as a free home inspection, a homeowner's warranty or a discount on commission (N.J.A.C. 11:5-6.1(m)). But a promotion can't involve a lottery, contest, game, prize or drawing, and an offer worth more than $1,000 needs a written disclosure (N.J.S.A. 45:15-17(g)). Rebates to buyers are allowed only on strict terms.

    Here's how each piece works, with the exact rule behind it.

    What kinds of free or discounted offers are allowed?

    The Real Estate Commission's advertising rule gives a broad list of examples (N.J.A.C. 11:5-6.1(m)1):

    • free or subsidized appraisals
    • homeowners' warranties
    • property, radon and pest inspections
    • surveys and mortgage fees
    • offers to pay other costs the parties usually pay
    • coupons for discounts on the brokerage firm's commission
    • cash payments

    All of it is "subject to the requirements and restrictions set forth in this chapter," so the usual advertising rules still apply. Every ad must still include your brokerage's regular business name and can't be false or misleading (N.J.A.C. 11:5-6.1(b), (r)). The 2026 amendments to the Commission's rules left this subsection unchanged (R.2026 d.020 adoption notice).

    Why are contests and drawings off limits?

    The license law itself makes it a ground for discipline to use "any plan, scheme or method" to sell or promote real estate that involves "a lottery, a contest, a game, a prize, a drawing," or giving away a lot for advertising (N.J.S.A. 45:15-17(g)). The Commission's rule repeats the ban for any free or discounted offer, "including the offering of a free appraisal" (N.J.A.C. 11:5-6.1(m)2).

    In practice, that rules out:

    • "Enter to win" raffles for a gift card, TV or vacation
    • Contests where the "best" photo or comment wins a prize
    • A drawing among everyone who books a listing appointment

    Instead, make the same offer to everyone who qualifies. "Every seller who lists with our firm this spring gets a free pre-listing inspection" is a promotion. "One lucky seller wins" isn't allowed. Our compliant social media guide has more examples for online posts.

    What's the $1,000 disclosure rule?

    If a promotion gives the recipient a monetary benefit of more than $1,000 retail, you must give a written disclosure that states, clearly and conspicuously (N.J.A.C. 11:5-6.1(m)3):

    1. What the consumer has to do to qualify, if anything. Attending a listing presentation or other meeting counts as an action.
    2. When the product or service will be delivered, if not at the time of the disclosure. If you don't know the date, the disclosure has to say so.
    3. Any compensation you receive for taking part in the promotion. If RESPA applies to that arrangement, the disclosure must follow RESPA's form and substance.

    Timing: the disclosure must be delivered no later than when the offer is "extended." That's when the free item is delivered, or when the consumer gets written confirmation of the right to receive it later (N.J.A.C. 11:5-6.1(m)4). You also can't make someone take any action before they get the disclosure, apart from what's needed to deliver it ((m)5).

    When the payment comes from a settlement service provider, such as a lender or title company, federal referral rules may also apply. See our guide to RESPA kickback rules.

    Can you advertise a "free home valuation"?

    You can offer a free comparative market analysis (CMA), but be careful with the word "appraisal." The rule gives "appraisal" its technical meaning: a study by an appraiser authorized by law to appraise NJ real estate. It also says plainly that a CMA is not an appraisal (N.J.A.C. 11:5-6.1(m)1i).

    So two rules follow:

    • Don't call your CMA an appraisal. "Free market analysis" or "free estimate of your home's value range" describes what you're actually giving.
    • Label the written CMA. Any written CMA you give a consumer must state that it isn't an appraisal and shouldn't be considered the equivalent of one, in print as large as the main text of the report.

    An offer of a real appraisal is allowed too, since "free or subsidized appraisals" are on the rule's list. The appraisal itself has to be done by a licensed or certified appraiser. Our CMA vs. appraisal guide explains the difference.

    Can a NJ broker give a buyer part of the commission?

    Yes, but only a purchaser of residential real property, and only through the broker. The license law generally bars paying "any rebate, profit, compensation or commission" to unlicensed people. It makes an exception for a buyer rebate when all of these are true (N.J.S.A. 45:15-17(k)):

    ConditionWhat it means
    Agreed at the startBroker and buyer contract for the rebate at the onset of the relationship, in a written document, electronic document or buyer agency agreement
    DisclosedThe broker follows any state or federal disclosure requirements for the rebate
    Tax adviceThe broker recommends that the buyer contact a tax professional about the rebate
    Paid at closingThe rebate is a credit that reduces the commission, or a check from the closing agent, made at closing

    Two limits are easy to miss. The exception covers buyers only, not sellers or "any other third party." And a salesperson can't pay it personally, because a salesperson's compensation flows through the employing broker (N.J.S.A. 45:15-16). Whether the buyer's lender allows the credit is a separate question for the lender.

    What about thank-you gifts and referral rewards?

    The same 45:15-17(k) rule is why a cash "referral fee" to an unlicensed friend is a problem. Free or discounted products and services offered under subsection (g) aren't a violation of (k), but cash for a referral isn't a promotion offered to the public (N.J.S.A. 45:15-17(g) and (k)). Our sphere of influence guide covers thanking past clients without crossing that line. Brokerages often have their own gift policies, so ask yours before you launch any promotion.

    Promotions are one small part of NJ advertising law. You'll learn the rest in Business Elementary's 75-hour pre-licensing course.

    Sources

    Last reviewed: November 4, 2026

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