New Jersey–Specific Real Estate Salesperson January/February 2026 State Licensing Exam Prep Memo | NJREC Laws & Regulations, State-Specific Exam Questions and Answers, Agency & Fiduciary Duties, Contracts of Sale, Disclosures, Fair Housing Compliance, Eth

• New Jersey–Specific Real Estate Salesperson January/February
2026 State Licensing Exam Prep Memo | NJREC Laws & Regulations,
State-Specific Exam Questions and Answers, Agency & Fiduciary
Duties, Contracts of Sale, Disclosures, Fair Housing Compliance,
Ethics, Math Calculations, Complete Study Guide for Passing the NJ
Real Estate Salesperson Exam
Question 1:
What is the primary purpose of the New Jersey Real Estate Commission?
A) To evaluate property values
B) To enforce real estate laws and regulations
C) To conduct real estate sales
D) To provide training to agents
Correct Option: B
Rationale: The New Jersey Real Estate Commission is responsible for enforcing real
estate laws and regulations to protect the public and maintain the integrity of the real
estate profession.


Question 2:
Which of the following is required to obtain a real estate license in New Jersey?
A) Being a high school graduate
B) Completion of a 75-hour pre-licensing course
C) Pass the national and state exams
D) All of the above
Correct Option: D
Rationale: An applicant for a real estate license in New Jersey must be a high school
graduate, complete a 75-hour pre-licensing course, and pass both the national and
state exams.


Question 3:
What is the maximum amount a broker can collect as a commission from a real
estate transaction in New Jersey?
A) 5% of the sale price
B) 6% of the sale price
C) There is no maximum commission limit
D) 10% of the sale price
Correct Option: C
Rationale: In New Jersey, there is no maximum limit on the commission rates that
brokers can charge; it is negotiable between the broker and the client.

,Question 4:
Which form of agency gives a broker the ability to represent both the buyer and the
seller in a transaction?
A) Dual agency
B) Exclusive agency
C) Transaction brokerage
D) Single agency
Correct Option: A
Rationale: Dual agency occurs when a broker represents both the buyer and the seller
in the same transaction, requiring full disclosure and consent from both parties.


Question 5:
What must a real estate broker in New Jersey do upon terminating a listing
agreement?
A) Notify the seller in writing
B) Return all unearned commissions
C) Immediately remove any signage
D) All of the above
Correct Option: A
Rationale: Upon terminating a listing agreement, the broker must notify the seller in
writing about the termination, ensuring all parties are informed appropriately.
Question 6:
What is the primary purpose of a property disclosure statement?
A) To inform potential buyers of the property's condition
B) To list the property's previous owners
C) To establish the asking price
D) To advertise the property
Correct Option: A
Rationale: A property disclosure statement aims to inform potential buyers of any
known issues or the overall condition of the property, ensuring transparency.


Question 7:
Which of the following is a requirement for a New Jersey real estate salesperson to
renew their license?
A) Complete 12 hours of continuing education
B) Pass the state licensing exam again

,C) Attend a real estate seminar
D) Become a member of NAR
Correct Option: A
Rationale: To renew their license, a New Jersey real estate salesperson must complete
12 hours of continuing education every two years.


Question 8:
In New Jersey, who is responsible for ensuring that real estate transactions comply
with local and state laws?
A) The buyer
B) The seller
C) The real estate broker
D) The attorney
Correct Option: C
Rationale: The real estate broker is responsible for ensuring that transactions adhere to
local and state laws, guiding their clients throughout the process.


Question 9:
What type of deed provides the greatest protection to the grantee?
A) Quitclaim deed
B) Bargain and sale deed
C) Warranty deed
D) Special warranty deed
Correct Option: C
Rationale: A warranty deed offers the greatest protection to the grantee, guaranteeing
clear title against any claims.


Question 10:
Which of the following is true regarding the New Jersey Real Estate Licensing law?
A) Licenses must be renewed every year
B) There is no fee for licensing
C) Brokers must supervise agents
D) Only one broker is allowed per transaction
Correct Option: C
Rationale: New Jersey law requires that licensed brokers must supervise their sales
agents, ensuring compliance with real estate regulations.

, Question 11:
What happens if a real estate transaction fails to close?
A) The seller keeps the deposit
B) The buyer receives the deposit back
C) The broker is entitled to the commission
D) None of the above
Correct Option: B
Rationale: If a transaction fails to close without default by the buyer, the buyer typically
receives their deposit back.


Question 12:
What is a “deficiency judgment”?
A) A loan for home repairs
B) A judgment for unpaid property taxes
C) A court order to recover funds from a borrower after foreclosure
D) A type of mortgage
Correct Option: C
Rationale: A deficiency judgment allows a lender to seek the balance owed on a
mortgage after foreclosure if the sale proceeds do not cover the debt.


Question 13:
How long must a real estate broker keep records of transactions in New Jersey?
A) 1 year
B) 3 years
C) 5 years
D) Indefinitely
Correct Option: C
Rationale: Brokers in New Jersey must maintain records of all real estate transactions
for a period of five years.


Question 14:
What is the primary role of a real estate appraiser?
A) To sell properties
B) To provide property management
C) To estimate property value
D) To represent buyers