The NJ Real Estate Glossary: Terms New Agents Hear in Their First Year

The short answer: Most of the vocabulary that trips up new New Jersey agents comes straight from state law. Attorney review, the Consumer Information Statement, transaction broker, broker of record and Guaranty Fund all have specific meanings set by the Real Estate Commission's rules (N.J.A.C. 11:5-6.2; N.J.A.C. 11:5-6.9). This glossary gives a plain-English definition of each term, its source, and a link to a deeper guide where we have one.

The definitions are short on purpose. They're here to help you follow a conversation at your brokerage, not to replace the rule text.

What do the NJ license titles mean?

• Salesperson. The license most new agents hold. A salesperson works under a licensed broker who employs (or contracts with) and supervises them (N.J.S.A. 45:15-3).
• Broker-salesperson. Someone qualified as a broker who chooses to work under another broker. They can't keep their own office or escrow account (N.J.A.C. 11:5-3.8(c)).
• Employing broker / broker of record. The broker your license is held under. All of your pay has to come through this broker (N.J.S.A. 45:15-16). When people talk about a "sponsoring broker," this is who they mean. See how to find a sponsoring broker.
• Referral agent. A salesperson who only refers business to their supervising broker and is paid only by that broker (N.J.S.A. 45:15-3).
• REALTOR®. A membership mark for members of the National Association of REALTORS® who subscribe to its Code of Ethics. It isn't a license type (NAR). Our guide to agent vs. REALTOR® vs. broker covers all the titles.

What do the agency terms mean?

• Consumer Information Statement (CIS). The state-required document that explains the five business relationships a NJ licensee can have with a buyer or seller. Licensees must explain it and give it to consumers at set points in a transaction, and it's included in the brokerage services agreement (N.J.A.C. 11:5-6.9; NJREC Bulletin 24-11). Licensees use the revised CIS issued with Bulletin 24-11.
• Brokerage services agreement. The written agreement between a firm and its buyer or seller client, such as a listing or buyer agency agreement. Since August 1, 2024, it's required in all residential transactions (P.L.2024, c.32; NJREC Bulletin 24-11).
• Seller's agent / buyer's agent. Agents who owe their client fiduciary duties: reasonable care, undivided loyalty, confidentiality, full disclosure and the duty to account (revised CIS).
• Disclosed dual agent. One firm representing both sides. It requires the informed written consent of both parties, given in the brokerage services agreement or another document they separately initial or sign (P.L.2024, c.32; NJREC Bulletin 24-11).
• Designated agent. A licensee the firm names to represent only the buyer or only the seller, while a colleague at the same firm represents the other side. It requires both parties' informed written consent, and the firm itself acts as a disclosed dual agent. NJ added it effective August 1, 2024 (NJREC Bulletin 24-11).
• Transaction broker. A licensee who helps with a transaction without representing either party as an agent. Under the CIS text, a transaction broker doesn't have to keep information confidential (revised CIS).

Agency is 13% of the national exam outline. See agency on the NJ real estate exam.

What do the listing and marketing terms mean?

• Exclusive right to sell, exclusive agency, open listing. The three main listing agreement types. They differ in who earns a commission if the owner or another firm finds the buyer. See types of listing agreements.
• Net listing. A listing where the broker keeps everything above a set price. It's prohibited in New Jersey (N.J.A.C. 11:5-6.2).
• "Commissions are negotiable." NJ rules prohibit a prescribed or predetermined commission rate. Ads that mention commission rates must include the statement "In New Jersey commissions are negotiable" (N.J.A.C. 11:5-6.2; N.J.A.C. 11:5-6.1).
• MLS (multiple listing service). A database that lets listing brokers work with other firms' agents. New Jersey has several. See how MLSs work in New Jersey.
• CMA (comparative market analysis). An agent's estimate of a likely price based on comparable sales. A written CMA must state that it isn't an appraisal (N.J.A.C. 11:5-6.1). See CMA vs. appraisal.
• BPO (broker price opinion). The NJ Real Estate Appraisers Board treats a BPO as an "appraisal" under NJ law, so brokers may prepare one only within narrow exemptions (Appraisers Board advisory opinion).
• "Under contract" vs. "sold." You can't advertise a home as "sold" until closing. "Under contract" may be used once the contract has survived attorney review (N.J.A.C. 11:5-6.1).

What do the contract and closing terms mean?

• Attorney review. A three-day period that starts when the signed contract is delivered. Weekends and legal holidays aren't counted, and either side's attorney can disapprove the contract during it. It applies to licensee-prepared contracts for 1–4 unit residential sales and vacant one-family lots (N.J.A.C. 11:5-6.2(g)). See NJ attorney review explained.
• Back-up offer. An offer received after a pending contract has survived attorney review. The owner must be advised in writing to consult an attorney (N.J.A.C. 11:5-6.4(h)).
• Statute of Frauds. NJ's rule that an agreement to transfer real estate generally needs a signed writing with the key terms, unless it's proved by clear and convincing evidence (N.J.S.A. 25:1-13).
• Megan's Law statement. A required statement in residential sales contracts and leases (N.J.A.C. 11:5-6.4).
• Fixture. An item attached to the property in a way that makes it part of the real estate, so it stays with the house. See fixtures vs. personal property.

What do the money and escrow terms mean?

• Deposit (earnest money). Money a buyer puts down with an offer. Brokers must deposit funds they hold "promptly," which the rules define as within 5 business days of receipt (N.J.A.C. 11:5-5.1(e)).
• Escrow (trust) account. A broker's account for other people's money. Withdrawals have to be made by check or bank transfer to a named payee, never in cash, and records are kept at least 6 years (N.J.A.C. 11:5-5.4).
• Commingling. Mixing other people's money with your own. It's a ground for discipline (N.J.S.A. 45:15-17(o)).
• Real Estate Guaranty Fund. A fund the Commission runs, paid for by assessments on licensees and applicants rather than taxpayer dollars (NJREC, About the Commission). $10 of the $160 initial salesperson license fee goes to it (NJREC fees).

What do the license-maintenance terms mean?

• License term. NJ licenses run on a statewide two-year term. The current one runs July 1, 2025 to June 30, 2027 (NJREC CE requirements).
• CE (continuing education). 12 credit hours per term, with at least 6 in core topics, due by April 30, 2027 for the current term (NJREC CE requirements). See NJ continuing education and renewal.
• Inactive license. A license that isn't currently held under an employing broker. It can stay inactive for up to 2 years after the last license issued expires, and reinstatement goes through an employing broker (NJREC FAQ).

If you're not licensed yet and these terms make you curious about the work, Business Elementary's 75-hour pre-licensing course is where they're first taught.

Sources

• N.J.A.C. 11:5-6.1, 6.2, 6.4, 6.9, 5.1, 5.4 and 3.8 (via Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-2 (and sibling sections linked above)
• P.L.2024, c.32 (effective August 1, 2024), NJ Legislature: https://pub.njleg.state.nj.us/Bills/2024/PL24/32_.HTM
• NJ Dept. of Banking and Insurance, Bulletin No. 24-11 (Aug. 1, 2024): https://www.nj.gov/dobi/bulletins/blt24_11.pdf
• NJREC, revised Consumer Information Statement (Bulletin 24-11, Appendix A): https://www.nj.gov/dobi/bulletins/blt24_11Info.pdf
• N.J.S.A. 45:15-3, 45:15-16, 45:15-17 and 25:1-13 (via Justia): https://law.justia.com/codes/new-jersey/title-45/section-45-15-3/
• NJREC, About the Commission: https://www.nj.gov/dobi/division_rec/reabout.html
• NJREC, Real Estate License Fees: https://www.nj.gov/dobi/division_rec/licensing/recfees.htm
• NJREC, Real Estate FAQs: https://www.nj.gov/dobi/division_rec/recfaqs.htm
• NJREC, Continuing Education requirements: https://www.nj.gov/dobi/division_rec/licensing/online_Instructions/ce.html
• NJ Real Estate Appraisers Board, Advisory Opinion on BPOs: https://www.njconsumeraffairs.gov/rea/Documents/Advisory-Opinion.pdf
• National Association of REALTORS®, Definition of REALTOR®: https://www.nar.realtor/membership-marks-manual/definition-of-realtor

Last reviewed: October 28, 2026

Related guides:

• New to the closing side of a deal? Title Searches and Title Insurance in Plain English explains what the search looks for and how owner's and lender's policies differ.
• Trying to read a Closing Disclosure? Closing Cost Vocabulary explains origination charges, points, prepaids, escrow deposits, title charges and cash to close.
• Want more on easements, encroachments and liens? Easements, Encroachments and Liens: Property Rights Basics explains each one and how it's handled before closing.
• Working with investors? Cap Rate, Equity and Rate of Return Explained Simply explains what each measure means and what it leaves out.
• Confused by deed names? Types of Deeds: Bargain and Sale, Warranty and Quitclaim explains what each one promises under NJ law.
• Heard "time is of the essence" in a deal? "Time Is of the Essence" in NJ Real Estate Contracts explains when a closing date is strict, how a notice works and how it's waived.
• Have an investor client selling a rental? 1031 Like-Kind Exchanges Explained covers the 45- and 180-day deadlines, intermediaries, boot, and what agents should and shouldn't do.
• Seller asking "Will I owe tax on this?" Selling Your Home and the Capital Gains Exclusion explains the $250,000/$500,000 exclusion, the 2-out-of-5-year tests and the exceptions.
• Hearing "triple net" or "percentage rent"? Gross, Net and Percentage Leases Explained compares who pays taxes, insurance and upkeep under each lease type.

Frequently Asked Questions

Is a transaction broker the same as a dual agent in NJ?

No. A disclosed dual agent represents both parties with their informed written consent. A transaction broker doesn't act as an agent for either party (N.J.A.C. 11:5-6.9).

Are net listings legal in New Jersey?

No. NJ's rules prohibit net listings (N.J.A.C. 11:5-6.2).

What is the Real Estate Guaranty Fund?

A fund the NJ Real Estate Commission administers, financed by licensee and applicant assessments. $10 of the initial salesperson license fee goes to it (NJREC, About the Commission; NJREC fees).

When can a listing be advertised as "under contract"?

After the contract has survived attorney review. "Sold" has to wait until closing (N.J.A.C. 11:5-6.1).

How fast must a broker deposit a buyer's earnest money?

"Promptly," which NJ rules define as within 5 business days of receipt (N.J.A.C. 11:5-5.1(e)).