New Jersey Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the New Jersey real estate exam, and it's also one of the most misunderstood. The New Jersey Real Estate Commission expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under New Jersey law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for NJ-specific rules are among the most common failures on the state portion.
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New Jersey Agency — Practice Questions & Answers
121 questions on Agency from the New Jersey real estate question bank. First 10 are free — sign up to unlock all 121.
Q1. In New Jersey, the Consumer Information Statement (CIS) must be provided to buyers and sellers:
Explanation
New Jersey's Consumer Information Statement must be provided at the first substantive meeting to inform buyers and sellers of the different agency relationships available and the duties each entails.
Q2. A New Jersey licensee who represents the seller must disclose to buyers:
Explanation
Even a seller's agent must disclose known material defects and facts about the property to buyers. This duty exists regardless of agency relationship and cannot be waived by the seller.
Q3. In New Jersey, designated agency means:
Explanation
Designated agency allows the managing broker to assign one agent in the office to represent the buyer and another to represent the seller, providing each party with undivided loyalty from their designated agent.
Q4. A listing agent in New Jersey is showing a property to an unrepresented buyer. The agent should:
Explanation
The listing agent must disclose that they represent the seller and cannot act as the buyer's agent without further agreement and disclosure. They should offer to explain agency options, including buyer representation through another agent.
Q5. The principal in an agency relationship is:
Explanation
The principal is the party (buyer or seller) who hires and authorizes the agent to represent them. The agent acts on behalf of and is accountable to the principal.
Q6. In New Jersey, when a buyer's agent learns their buyer client is willing to pay more than their offer price, the agent must:
Explanation
The duty of confidentiality and loyalty requires the buyer's agent to protect this information. Disclosing the buyer's maximum price would directly harm the buyer's negotiating position.
Q7. In New Jersey, which form must be provided to a consumer at the first substantive contact with a licensee?
Explanation
New Jersey requires licensees to provide the Consumer Information Statement (CIS) to consumers at the first substantive contact, explaining brokerage relationships.
Q8. Dual agency in New Jersey is:
Explanation
Dual agency is permitted in NJ but requires the informed written consent of both buyer and seller before the agent may represent both parties in the same transaction.
Q9. A designated agency arrangement in NJ means:
Explanation
Designated agency allows a broker to designate one licensee within the firm to represent the buyer and a different licensee to represent the seller, reducing dual agency conflicts.
Q10. A buyer's agent in NJ owes which of the following fiduciary duties to the buyer?
Explanation
A buyer's agent owes the full set of fiduciary duties to the buyer: loyalty, disclosure, confidentiality, obedience, reasonable care, and accounting.
Q11. Under NJ law, a subagent working with a buyer actually represents:
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