The NJ Law Against Discrimination (LAD) for Real Estate Agents

The short answer: New Jersey's Law Against Discrimination makes it unlawful for any person, "including but not limited to, any real estate broker, real estate salesperson," to refuse to sell, rent or negotiate, to discriminate in terms or services, or to publish discriminatory ads based on a list of characteristics that is broader than federal fair housing law. The NJ list adds marital, civil union and domestic partnership status, sexual orientation, gender identity or expression, pregnancy or breastfeeding, military service liability, ancestry, nationality and source of lawful income (N.J.S.A. 10:5-12(h), as amended by P.L. 2025, c.251). Licensees also have their own duties under Real Estate Commission rules (N.J.A.C. 11:5-6.4).

This is general information, not legal advice. For licensing questions, contact the NJ Real Estate Commission at (609) 292-7272.

Which characteristics does the LAD protect in housing?

The most recent amendment, P.L. 2025, c.251, was approved January 12, 2026 and took effect immediately. Here is how its housing list compares with the federal Fair Housing Act:

Age appears elsewhere in the LAD, for example in the rule on access to multiple listing services and brokers' organizations, but not in the housing sale and rental list.

What does the LAD prohibit agents from doing?

Subsection (h) speaks directly to brokers, salespersons and their employees and agents. Based on any protected characteristic, it's unlawful to (N.J.S.A. 10:5-12(h)):

1. Refuse to sell, rent or lease, or refuse to negotiate.
2. Say a property isn't available for inspection, sale or rental when it is.
3. Discriminate in terms, conditions or services, for example by offering different terms or less help.
4. Publish anything discriminatory. That includes ads, signs, application forms, records and inquiries that express "directly or indirectly" any limitation or preference. If such an ad is produced, the law treats it as presumptive evidence that the person it claims to come from authorized it.
5. Refuse to rent to families with children under 18, or use a lease that becomes void when a child is born (housing for older persons is excepted).

Two more provisions matter in practice. Blockbusting is barred: no licensee may, to induce a sale or rental they'd profit from, claim a neighborhood's makeup is changing and that this will lower values, raise crime or hurt schools (10:5-12(k)). And an MLS or brokers' organization can't deny membership or access on protected grounds (10:5-12(o)).

What does "source of lawful income" cover?

The 2026 amendment defines it broadly: any lawful source of income or of rent or mortgage payments, including Section 8 housing choice vouchers, temporary and State rental assistance, nonprofit rental assistance, government benefits such as disability and veterans' benefits, and court-ordered payments such as child support or alimony (P.L. 2025, c.251, defining "source of lawful income").

It also spells out two practices that count as refusing to rent: refusing to accept a lawful source as payment, and applying a minimum income requirement or financial standard that isn't based only on the tenant's share of the rent. The Attorney General's notice gives examples of ads that violate the LAD: "No Section 8," "TRA not accepted" and "This property not approved for Section 8" (AG notice to property owners).

What must you do when you take a listing?

The Commission's rules add licensee-specific steps (N.J.A.C. 11:5-6.4(j)–(k)):

• Give the owner the Attorney General's notice on housing discrimination when you take a listing for sale or rental. NJREC links the current version, dated December 2021, from its home page (NJREC).
• Refuse the listing if the owner says they intend to discriminate. The notice tells owners this directly (AG notice).
• Don't deny brokerage services on protected grounds, including source of lawful income.

Ads also can't contain discriminatory wording (N.J.A.C. 11:5-6.1(i)). Fair housing stays on your plate after licensing too: every renewal term needs at least one CE hour in Fair Housing and the NJ LAD (see NJ continuing education).

Are there any exemptions?

A few, and they're narrow. Except for publicly assisted housing, the LAD doesn't apply to renting one unit of a two-family home when the owner lives in the other unit, or to an owner or occupant renting rooms in a one-family home they live in. Religious organizations may give preference to members of the same religion, and the familial-status rules don't apply to housing for older persons (N.J.S.A. 10:5-5(n), as amended).

None of these exemptions lets a licensee publish a discriminatory ad on an owner's behalf. Ask your broker before taking any listing where an owner raises one.

What happens if someone violates the LAD?

The Attorney General's notice lists penalties for a discriminatory housing practice of up to $10,000 for a first violation, up to $25,000 for a second within five years, and up to $50,000 for two or more within seven years. Victims may also recover economic and emotional-distress damages, and punitive damages in egregious cases (AG notice).

A complaint with the Division on Civil Rights must be filed within 180 days of the alleged act (N.J.S.A. 10:5-18). The Division's housing hotline is (866) 405-3050 (AG notice).

The LAD is also one of the four laws in the "Additional Requirements" area of the state exam, covered in our NJ law items study guide. For the federal side, including lending rules, see financing on the NJ exam.

If you're preparing for a NJ license, Business Elementary's 75-hour pre-licensing course page explains the first step.

Sources

• P.L. 2025, c.251 (amending N.J.S.A. 10:5-3, -5, -6, -8 and -12; approved January 12, 2026): https://pub.njleg.state.nj.us/Bills/2024/PL25/251_.PDF
• N.J.S.A. 10:5-18 (via Justia): https://law.justia.com/codes/new-jersey/title-10/section-10-5-18/
• NJ Attorney General / Division on Civil Rights, "Housing Discrimination Laws" notice to property owners (December 2021): https://nj.gov/dobi/division_rec/2021AGFairHousingLetter.pdf
• NJ Real Estate Commission home page: https://www.nj.gov/dobi/division_rec/
• N.J.A.C. 11:5-6.4 and 11:5-6.1 (via Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-4 ; https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-1
• HUD, Fair Housing Act overview: https://www.hud.gov/helping-americans/fair-housing-act-overview

Last reviewed: October 28, 2026

Related guides:

• Writing the ad itself? Fair Housing in NJ Real Estate Ads: Words and Images to Avoid shows risky phrases, photo and targeting pitfalls, and neutral rewrites.

• Screening rental applicants? The NJ Fair Chance in Housing Act explains when landlords and their agents can (and can't) look at criminal history.

• Buyer asking whether a neighborhood or school is "good"? Answering "Is This a Good Neighborhood?" Without Steering shows how to answer with public data instead of opinions.

Frequently Asked Questions

Is source of income a protected class in NJ housing?

Yes. The LAD protects "source of lawful income used for rental or mortgage payments," which includes Section 8 vouchers and other rental assistance (N.J.S.A. 10:5-12, as amended by P.L. 2025, c.251).

Does the LAD cover home sales or only rentals?

Both. Subsection (h) covers refusing to sell, rent, lease, assign or sublease, and refusing to negotiate (N.J.S.A. 10:5-12(h)).

What notice do I give a seller when I take a listing?

The Attorney General's housing discrimination notice to property owners. NJREC links the December 2021 version (N.J.A.C. 11:5-6.4(j); NJREC).

Is an owner renting half of their own two-family house covered?

Generally no. That rental is exempt unless the housing is publicly assisted (N.J.S.A. 10:5-5(n)).

How long do you have to file a complaint with the Division on Civil Rights?

180 days from the alleged act (N.J.S.A. 10:5-18).