New Jersey–Specific Real Estate Salesperson January/February 2026 State Licensing Exam Prep Memo | NJREC Laws & Regulations, Agency & Fiduciary Duties, Contracts of Sale, Property Ownership, Disclosures, Fair Housing Compliance, Ethics, Math Calculations,

• New Jersey–Specific Real Estate Salesperson January/February
2026 State Licensing Exam Prep Memo | NJREC Laws & Regulations,
Agency & Fiduciary Duties, Contracts of Sale, Property Ownership,
Disclosures, Fair Housing Compliance, Ethics, Math Calculations,
Practice Questions & Answers, Complete Study Guide for NJ Real
Estate Salesperson License
Question 1:
What is the minimum age requirement to obtain a real estate license in New
Jersey?
A) 18
B) 21
C) 25
D) 30
Correct Answer: A) 18
Rationale: In New Jersey, the minimum age requirement to apply for a real estate
salesperson license is 18 years old.


Question 2:
Which of the following is NOT a requirement for obtaining a real estate salesperson
license in New Jersey?
A) Completing a 75-hour pre-licensure course
B) Passing the state licensing exam
C) Having a high school diploma
D) Submitting fingerprints for a background check
Correct Answer: C) Having a high school diploma
Rationale: While a high school diploma is beneficial, it is not a formal requirement for
obtaining a real estate salesperson license in New Jersey.


Question 3:
What must a real estate salesperson in New Jersey do to keep their license active?
A) Take a 2-hour renewal course every year
B) Complete 12 hours of continuing education every two years
C) Submit an application to the state every year
D) Pay a fine if the license is inactive
Correct Answer: B) Complete 12 hours of continuing education every two years

,Rationale: New Jersey requires real estate salespersons to complete 12 hours of
continuing education every two years to maintain an active license.


Question 4:
What is the maximum amount of commission a real estate salesperson can receive
in New Jersey?
A) 5% of the sales price
B) 6% of the sales price
C) There is no maximum; it is negotiable
D) 10% of the sales price
Correct Answer: C) There is no maximum; it is negotiable
Rationale: In New Jersey, the commission rate is not regulated and is negotiable
between the parties involved.
Question 5:
Which entity regulates real estate licenses in New Jersey?
A) New Jersey Real Estate Commission
B) New Jersey Department of Banking and Insurance
C) New Jersey Division of Consumer Affairs
D) Board of Realtors
Correct Answer: A) New Jersey Real Estate Commission
Rationale: The New Jersey Real Estate Commission is the governing body that oversees
real estate licenses and practices in the state.


Question 6:
What is the main purpose of the New Jersey Real Estate Commission?
A) To collect taxes on real estate sales
B) To protect the public and ensure that licensees comply with laws and regulations
C) To assist in real estate transactions
D) To provide financial assistance for buyers
Correct Answer: B) To protect the public and ensure that licensees comply with
laws and regulations
Rationale: The Commission's primary role is to safeguard the public by regulating real
estate sales and ensuring compliance with laws.

,Question 7:
How many members are on the New Jersey Real Estate Commission?
A) 5
B) 7
C) 9
D) 11
Correct Answer: B) 7
Rationale: The New Jersey Real Estate Commission consists of 7 members, including 6
licensed real estate professionals and 1 public member.


Question 8:
Which of the following is considered a fiduciary duty of a real estate salesperson?
A) Advertising properties
B) Hosting open houses
C) Loyalty to the client
D) Filing paperwork
Correct Answer: C) Loyalty to the client
Rationale: Loyalty is one of the fiduciary duties a real estate salesperson owes to their
client, ensuring their interests are prioritized.


Question 9:
What is "dual agency"?
A) Representing two buyers in the same transaction
B) A brokerage representing both the buyer and seller in the same transaction
C) Working with real estate agents from different firms
D) Having multiple transactions simultaneously
Correct Answer: B) A brokerage representing both the buyer and seller in the same
transaction
Rationale: Dual agency occurs when one brokerage represents both the buyer and
seller in a transaction, requiring informed consent from both parties.


Question 10:
What type of agency relationship does a listing agreement create?

, A) Implied Agency
B) General Agency
C) Special Agency
D) Universal Agency
Correct Answer: C) Special Agency
Rationale: A listing agreement establishes a special agency relationship, where the
agent has the authority to act on behalf of the client for a specific purpose.


Question 11:
Under New Jersey law, what is the "law of agency"?
A) A law regulating commission rates
B) A law detailing how real estate transactions are taxed
C) A law that governs the relationship between agents and their clients
D) A law pertaining to property ownership rights
Correct Answer: C) A law that governs the relationship between agents and their
clients
Rationale: The law of agency outlines the legal responsibilities and rights of agents in
relation to their clients.


Question 12:
What is required for a salesperson to be eligible for the state real estate exam?
A) Completed 90 hours of pre-licensure education
B) Completed a 75-hour pre-licensure education course
C) Completed 50 hours of on-the-job training
D) Completed a bachelor’s degree in real estate
Correct Answer: B) Completed a 75-hour pre-licensure education course
Rationale: To be eligible for the state exam, a salesperson must have completed the
required 75-hour pre-licensure education course.


Question 13:
In New Jersey, how long is a real estate salesperson’s license valid?
A) 1 year
B) 2 years
C) 3 years
D) 5 years