New Jersey Real Estate Practice Exam & 2026 NJREC Salesperson Guide

Mandatory 3-Business-Day Attorney Review Clause

Consumer Information Statement (CIS) Delivery

Guaranty Fund $20,000 Cap & Automatic Revocation

5-Day Escrow Deposit & 6-Year Record Retention

N.J.S.A. Title 45, Chapter 15 and N.J.A.C. Title 11, Chapter 5 (NJREC Administrative Rules), New Jersey Real Estate Commission (NJREC: 8 members appointed by Governor: 5 licensed brokers with ≥ 10 years active experience, 2 public citizen members, and 1 state governmental representative, 3-year terms), Department of Banking and Insurance (DOBI) oversight, rulemaking, investigatory, and subpoena powers, civil fines up to $10,000 for first violation and $25,000 for subsequent violations, Real Estate Guaranty Fund (N.J.S.A. 45:15-34: $10 salesperson / $20 broker initial fee, $20,000 per transaction claim cap, automatic license revocation upon payment, 100% repayment plus interest for reinstatement), licensing classifications (Broker, Broker-Salesperson, Salesperson, Referral Agent), Salesperson licensure qualifications (18 yrs, high school diploma, 75 classroom hours in approved school, fingerprinting/background check, pass PSI exam, broker sponsorship), Broker qualifications (150 classroom hours, 3 continuous years full-time active salesperson experience), biennial license renewals on July 1 of odd-numbered years, 12-hour Continuing Education requirement (6 core hours including 2 hours ethics/fair housing + 6 electives; April 30 deadline to avoid $200 late fee), temporary broker license on death/incapacity of sole proprietor broker (1-year term to salesperson with 3 yrs experience), place of business regulations, branch office supervision, and unlicensed assistants restrictions.

N.J.A.C. 11:5-6; mandatory delivery and signed acknowledgment of the Consumer Information Statement (CIS) on New Jersey Real Estate Relationships at first substantive contact (in person, by telephone, or electronic mail); four statutory agency relationships: Seller's Agent, Buyer's Agent, Disclosed Dual Agent, and Transaction Broker; fiduciary loyalty, obedience, disclosure, confidentiality, and accounting; Disclosed Dual Agency written informed consent; mandatory 3-business-day Attorney Review Clause (New Jersey State Bar Ass'n v. New Jersey Ass'n of Realtor Boards) with mandatory boilerplate language prominently placed on top of page 1; counting of 3 business days and certified mail/telegram/personal delivery of attorney disapproval; Escrow / Trust accounting rules: deposit in an authorized New Jersey financial institution within 5 business days of receipt; commingling prohibition; 6-year record retention rule for trust records and transaction files; advertising regulations (N.J.A.C. 11:5-6.1: broker's business name prominence, franchise disclosures, prohibition of free offerings contingent on purchase, MLS attribution); compensation rules: salesperson compensation solely through employing broker; rebates to purchasers permitted under strict statutory criteria (N.J.S.A. 45:15-16.1: written agreement, disclosure to lender/parties, tax consequences notice).

New Jersey Law Against Discrimination (NJLAD - N.J.S.A. 10:5-1 et seq.): covers 7 federal protected classes plus New Jersey extra protected classes: marital status, domestic partnership/civil union status, affectional or sexual orientation, gender identity or expression, ancestry, nationality, source of lawful income/vouchers (Section 8), and liability for service in the armed forces; real estate licensees are never exempt; landmark Mount Laurel I & II Affordable Housing Doctrine and Council on Affordable Housing (COAH) constitutional obligation for municipal land use; Real Estate Sales Full Disclosure Act (N.J.S.A. 45:15-16.27: out-of-state land and timeshares, registration, public offering statements, and mandatory 7-day right of rescission); Truth in Renting Act & Landlord-Tenant: security deposit cap of 1.5 months' rent, interest-bearing NJ bank account notice within 30 days, annual interest payment to tenant, max 10% annual deposit increase, 30-day return deadline (5 days for fire/flood); Anti-Eviction Act (N.J.S.A. 2A:18-61.1: notice requirements, 3 years for condo conversion, self-help eviction ban); Private Well Testing Act (PWTA: mandatory testing prior to closing); Off-Site Conditions Disclosure Act (5-day buyer inspection right of municipal lists); Pinelands Protection Act & Wetlands (CAFRA); Realty Transfer Fee (RTF paid by seller) and New Jersey 1% Mansion Tax on residential sales over $1,000,000 (paid by buyer); Bulk Sales Law (Form C-9600 notification 10 business days prior to commercial/investment closing).