NJ REAL ESTATE EXAM 2026 PROPERTY
LICENSING TEST PAPER QUESTIONS AND
SOLUTIONS GRADED A+
◉ Broker-Salesperson. Answer: A qualified broker who practices
real estate in the position of salesperson in another broker's office
◉ bureau of subsidized land sales control. Answer: regulations
covering out of state properties sold in NJ
◉ continuing education. Answer: 12 hours required every two years,
two of which must be on ethics
◉ NJ Real Estate Commission. Answer: Department of Banking and
Insurance. 8 members. 5 brokers for at least 10 years, two from
general public and one representing the state government
◉ Real estate license act. Answer: Title 45 chapter 15
◉ Title 11, chapter 5. Answer: NJ real estate license act
administrative code
,◉ Real estate sales full disclosure act. Answer: covers the sales of
out of state property in NJ
◉ referral agent. Answer: only allowed to refer prospects to a
brokers office
◉ referral fee. Answer: part of a commission or fee paid to a broker
who sends a client
◉ salesperson. Answer: works under a sponsoring licensed broker
doing business in the name of the broker
◉ branch office. Answer: must be under the direct supervisor of a
broker or broker salesperson and must have a duplicate license
◉ commingling. Answer: brokers are prohibited from mixing their
own funds with money in the trust account
◉ duplicate original. Answer: multiple original copies for the parties
signatures. required for all listing contracts, sales contracts and
leases
,◉ escrow account. Answer: also known as trust account. must be in
an authorized financial institution in NJ to be used for depositing all
money belonging to other persons
◉ guilty knowledge. Answer: knew what was going on and did not
attempt to stop it
◉ probation. Answer: first step after a complaint against a licensee.
fine of up to $5000
◉ suspension. Answer: suspend a license fine up to $10,000
◉ revocation. Answer: permanently revoke licence. Fine up to
$10,000
◉ waiver of broker cooperation. Answer: what a seller must sign if
they direct the broker not to cooperate with any other brokers
◉ principal. Answer: client
◉ agency. Answer: a fiduciary relationship that falls within in the
requirements of the law of agency
, ◉ fiduciary relationship. Answer: one of trust and confidence in
which an agent is responsible for the money and/or property of
others. It requires putting the principal's interest above all others,
including the broker's own interest.
◉ fiduciary. Answer: agent
◉ COALD. Answer: Care, obedience, accounting, loyalty, disclosure
◉ general agent. Answer: empowered to represent the principal in a
broad range of matters (ex: property manager)
◉ universal agent. Answer: has authority to represent the principal
in all matters that can be delegated (ex: power of attorney)
◉ special agent. Answer: authorized to represent that principal in
one specific capacity only (most broker relationships)
◉ standard of care. Answer: the quality of service a normal person
would expect from a broker or salesperson
◉ disclosure. Answer: agent's duty to pass on to the principal all the
facts and information obtained that could affect the principal's
business or decisions, whether or not the client asks
LICENSING TEST PAPER QUESTIONS AND
SOLUTIONS GRADED A+
◉ Broker-Salesperson. Answer: A qualified broker who practices
real estate in the position of salesperson in another broker's office
◉ bureau of subsidized land sales control. Answer: regulations
covering out of state properties sold in NJ
◉ continuing education. Answer: 12 hours required every two years,
two of which must be on ethics
◉ NJ Real Estate Commission. Answer: Department of Banking and
Insurance. 8 members. 5 brokers for at least 10 years, two from
general public and one representing the state government
◉ Real estate license act. Answer: Title 45 chapter 15
◉ Title 11, chapter 5. Answer: NJ real estate license act
administrative code
,◉ Real estate sales full disclosure act. Answer: covers the sales of
out of state property in NJ
◉ referral agent. Answer: only allowed to refer prospects to a
brokers office
◉ referral fee. Answer: part of a commission or fee paid to a broker
who sends a client
◉ salesperson. Answer: works under a sponsoring licensed broker
doing business in the name of the broker
◉ branch office. Answer: must be under the direct supervisor of a
broker or broker salesperson and must have a duplicate license
◉ commingling. Answer: brokers are prohibited from mixing their
own funds with money in the trust account
◉ duplicate original. Answer: multiple original copies for the parties
signatures. required for all listing contracts, sales contracts and
leases
,◉ escrow account. Answer: also known as trust account. must be in
an authorized financial institution in NJ to be used for depositing all
money belonging to other persons
◉ guilty knowledge. Answer: knew what was going on and did not
attempt to stop it
◉ probation. Answer: first step after a complaint against a licensee.
fine of up to $5000
◉ suspension. Answer: suspend a license fine up to $10,000
◉ revocation. Answer: permanently revoke licence. Fine up to
$10,000
◉ waiver of broker cooperation. Answer: what a seller must sign if
they direct the broker not to cooperate with any other brokers
◉ principal. Answer: client
◉ agency. Answer: a fiduciary relationship that falls within in the
requirements of the law of agency
, ◉ fiduciary relationship. Answer: one of trust and confidence in
which an agent is responsible for the money and/or property of
others. It requires putting the principal's interest above all others,
including the broker's own interest.
◉ fiduciary. Answer: agent
◉ COALD. Answer: Care, obedience, accounting, loyalty, disclosure
◉ general agent. Answer: empowered to represent the principal in a
broad range of matters (ex: property manager)
◉ universal agent. Answer: has authority to represent the principal
in all matters that can be delegated (ex: power of attorney)
◉ special agent. Answer: authorized to represent that principal in
one specific capacity only (most broker relationships)
◉ standard of care. Answer: the quality of service a normal person
would expect from a broker or salesperson
◉ disclosure. Answer: agent's duty to pass on to the principal all the
facts and information obtained that could affect the principal's
business or decisions, whether or not the client asks
