New Jersey Real Estate Practice Exam
(Free Questions & Answers)
The New Jersey real estate exam is administered by the New Jersey Real Estate Commission and includes a unique three-day attorney review period that is built into all New Jersey residential contracts — buyers and sellers both have the right to cancel or modify the contract through their attorneys within three business days of signing. This New Jersey-specific provision is heavily tested and differs from how contracts work in virtually every other state. The state portion also covers New Jersey's Consumer Information Statement (required at first contact) and New Jersey's extensive environmental contamination disclosure under ISRA.
Administered by: New Jersey Real Estate Commission · 110 questions · Passing score: 70%
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Updated May 2026 · New Jersey Real Estate Commission exam outline
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Free New Jersey Real Estate Practice Exam Questions
Test your knowledge with these New Jersey real estate practice questions. Each question is based on topics from the New Jersey Real Estate Commission exam and includes detailed explanations.
Q1. Which state agency regulates real estate licenses in New Jersey?
Explanation
The New Jersey Real Estate Commission (NJREC), under the Division of Consumer Affairs, is the state agency responsible for licensing and regulating real estate brokers and salespersons in New Jersey.
Q2. 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.
Q3. New Jersey is one of the few states where residential real estate contracts are subject to an attorney review period. This period is typically:
Explanation
New Jersey's standard attorney review period is 3 business days from the date all parties sign. During this period, either party's attorney may disapprove the contract, propose modifications, or confirm it as written.
Q4. New Jersey has a realty transfer fee (RTF) paid at closing. Who is primarily responsible for paying this fee?
Explanation
In New Jersey, the realty transfer fee (RTF) is primarily the seller's responsibility. The fee is based on the sales price and is one of the seller's closing costs.
Q5. New Jersey recognizes tenancy by the entirety as a form of co-ownership. This form is available:
Explanation
Tenancy by the entirety in New Jersey is available only to legally married couples (and civil union partners). It provides right of survivorship and protects the property from the individual debts of either spouse.
Q6. In New Jersey's active suburban real estate market, which valuation approach is most commonly used for single-family residential appraisals?
Explanation
The sales comparison approach is the most commonly used and most reliable approach for single-family residential properties in active markets, where sufficient comparable sales data is available.
Q7. New Jersey's Law Against Discrimination (NJLAD) provides housing protections that are broader than the federal Fair Housing Act. Which of the following is a protected class under NJLAD but NOT the federal FHA?
Explanation
New Jersey's NJLAD prohibits housing discrimination based on source of lawful income, which means landlords cannot refuse to rent to tenants using Section 8 housing vouchers or other lawful income sources.
Q8. New Jersey is an 'attorney state' for real estate closings. This means:
Explanation
New Jersey is an attorney state, meaning attorneys are customarily and often required to be involved in real estate transactions — particularly for the attorney review period and the conduct of the closing.
Q9. A New Jersey home sells for $520,000. The total commission is 5%, split 50/50 between listing and selling brokerages. The listing agent receives 60% of their brokerage's share. How much does the listing agent earn?
Explanation
Total commission = $520,000 × 0.05 = $26,000. Listing brokerage share = $26,000 ÷ 2 = $13,000. Listing agent's share = $13,000 × 0.60 = $7,800.
Q10. Which federal law governs the cleanup of hazardous waste sites and created the 'Superfund'?
Explanation
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), known as 'Superfund,' establishes liability for cleaning up hazardous substance releases.
Q11. The NJ Municipal Land Use Law (MLUL) grants municipalities the authority to:
Explanation
The NJ MLUL authorizes municipalities to adopt master plans, zoning ordinances, and subdivision regulations to guide local land use and development.
Q12. A property manager in NJ who negotiates leases on behalf of an owner must hold:
Explanation
NJ law requires anyone who negotiates leases or manages property for others for compensation to hold a real estate license.
Q13. How many hours of pre-license education are required for a New Jersey real estate salesperson license?
Explanation
New Jersey requires 75 hours of pre-license education before a candidate may sit for the salesperson licensing exam.
Q14. 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.
Q15. During the New Jersey attorney review period, either party may:
Explanation
During attorney review in New Jersey, either party's attorney can disapprove the contract for any reason or propose modifications. If the contract is disapproved, both parties are released and earnest money is returned.
Q16. Under RESPA, the Loan Estimate must be provided to a mortgage applicant within:
Explanation
RESPA requires lenders to provide the Loan Estimate to borrowers within 3 business days of receiving a complete loan application, giving borrowers time to compare loan terms.
Q17. A cooperative (co-op) apartment differs from a condominium in that co-op owners:
Explanation
In a co-op, residents own shares of stock in a corporation that owns the building and receive a proprietary lease giving them the right to occupy a specific unit. There is no deed conveying individual unit ownership.
Q18. Physical depreciation that is 'curable' means:
Explanation
Curable depreciation refers to items where the cost of repair does not exceed the increase in value the repair provides. It is economically sensible to fix. Incurable depreciation is not cost-effective to repair.
Q19. Under the NJLAD and federal Fair Housing Act, a landlord's policy requiring 'no children under 10' in a rental complex is:
Explanation
A policy restricting children under 10 is discrimination based on familial status, which is prohibited under both federal law and the NJLAD. The only exception is housing qualifying under HOPA as senior housing.
Q20. A title search in New Jersey involves examining public records to determine:
Explanation
A title search examines recorded public records (deeds, mortgages, judgments, tax liens) to determine the history of ownership and identify any liens, encumbrances, or defects affecting the title.
Q21. A buyer purchases a $475,000 home with a 20% down payment. What is the loan amount, and if the interest rate is 7% annually, what is the first month's interest charge?
Explanation
Down payment = $475,000 × 0.20 = $95,000. Loan = $475,000 − $95,000 = $380,000. Monthly interest = $380,000 × (0.07 ÷ 12) = $380,000 × 0.005833 ≈ $2,217.
Q22. Radon is a naturally occurring radioactive gas that enters homes primarily through:
Explanation
Radon seeps into buildings through cracks and openings in foundations and floors from the soil. It is the second leading cause of lung cancer in the United States.
Q23. A variance in NJ zoning law allows a property owner to:
Explanation
A variance grants relief from specific zoning standards (setback, height, use) when strict application would create an undue hardship on the property owner.
Q24. Under a gross lease, the tenant pays:
Explanation
In a gross lease, the tenant pays a fixed rent and the landlord is responsible for paying property taxes, insurance, maintenance, and other operating expenses.
Q25. The New Jersey real estate salesperson licensing exam consists of how many questions?
Explanation
The New Jersey real estate licensing exam consists of 110 questions — a national portion and a state-specific portion.
1,500+ questions · Timed mock exams · Detailed explanations
New Jersey Real Estate Exam — What to Expect
What Is On The New Jersey Real Estate Exam?
The New Jersey real estate salesperson exam is administered by the New Jersey Real Estate Commission and tests both national real estate principles and New Jersey-specific laws and regulations. The exam contains 110 multiple-choice questions, and you must score at least 70% to pass.
The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to New Jersey — including regulations set by the New Jersey Real Estate Commission, New Jersey agency disclosure requirements, and state-specific contract and closing practices.
Topics covered on the New Jersey exam include: Property Ownership, Agency Law, Contracts, Finance, New Jersey License Law, Fair Housing. Candidates who struggle on the NJ exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but New Jersey law questions require targeted preparation.
Official New Jersey Exam Content Areas
Source: New Jersey Real Estate Commission · Updated June 2026
| Content Area | Questions |
|---|---|
| National Section (11 PSI topic areas) | 80 |
| New Jersey State Section (NJ license act, NJREC structure, agency disclosure, contract forms, ethics, consumer protection) | 30 |
- ▸Administered by PSI; must score 70% on each section — 56/80 national, 21/30 state; sections scored independently in a single sitting; failed sections may be retaken separately
- ▸New Jersey's real estate licensing statute is N.J.S.A. 45:15-1 et seq. (Real Estate Brokers and Salesmen Act) — the NJ Real Estate Commission (NJREC) under the Division of Consumer Affairs within the Department of Law and Public Safety enforces it
- ▸New Jersey state section covers NJREC structure and powers, licensing requirements, agency disclosure obligations, brokerage relationship forms, contract requirements, and consumer protection provisions
- ▸New Jersey requires agents to provide a written Consumer Information Statement (CIS) identifying their agency relationship at or before first substantive contact — failure to provide the CIS is a license law violation
- ▸New Jersey sellers of residential property must complete a Seller's Property Condition Disclosure Statement — disclosing known material defects, flooding history, environmental conditions, and underground storage tanks; buyer must acknowledge receipt before signing the contract
- ▸Source: New Jersey Real Estate Commission (njconsumeraffairs.gov/rec), N.J.S.A. 45:15, and PSI Candidate Information Bulletin #1663
Practice New Jersey questions by topic — start with New Jersey License Law, Agency, and Contracts to build your foundation, then work through remaining topics.
How Many Questions Are On The New Jersey Exam?
The New Jersey real estate salesperson exam has 110 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering New Jersey-specific laws administered by the New Jersey Real Estate Commission. You have 4 hours to complete the exam.
New Jersey Real Estate Exam Passing Score
You need a 70% to pass the New Jersey real estate exam. The first-time pass rate in New Jersey is approximately 53%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the NJ-specific portion. Our New Jersey practice exam is built specifically around the New Jersey Real Estate Commission exam outline.
Read our complete New Jersey exam study guide — state-specific topics, 5-week study plan, and what to focus on before exam day.
Most Difficult Topics On The New Jersey Exam
These are the areas where New Jersey candidates most commonly lose points — and a key reason why some states produce harder real estate exams than others.
New Jersey residential contracts include a mandatory 3-day attorney review period during which buyers and sellers can cancel or modify contracts through their attorneys. This NJ-specific provision is unique and heavily tested.
New Jersey requires licensees to provide a Consumer Information Statement at the first contact with a buyer or seller. The timing, content, and receipt requirements for this statement are tested on the state exam.
New Jersey Real Estate Commission's licensing requirements, the 75-hour pre-license course, broker supervision rules, and continuing education mandates are tested on the state portion.
New Jersey's Industrial Site Recovery Act (ISRA) and comprehensive contamination disclosure laws are more extensive than most states'. Environmental questions on the NJ state exam often reflect this more stringent disclosure regime.
New Jersey Real Estate Math
The New Jersey real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the NJ exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.
🧮 See all exam math formulas →How To Get Your New Jersey Real Estate License
- 1Complete 75 hours of state-approved pre-license education covering topics required by the New Jersey Real Estate Commission.
- 2Submit your application to the New Jersey Real Estate Commission and pay the required fees (exam fee: $45).
- 3Pass the New Jersey real estate salesperson exam (110 questions, 70% to pass).
- 4Complete a background check and fingerprinting as required by New Jersey law.
- 5Find a licensed sponsoring/employing broker to activate your license.
- 6Complete any required post-licensing education within the timeframe set by the New Jersey Real Estate Commission.
Best Study Strategy For The New Jersey Exam
Start with New Jersey license law first. State-specific regulations administered by the New Jersey Real Estate Commission make up a significant portion of the NJ exam and are not covered in most national study materials.
Master the math early. The New Jersey real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.
Take timed practice exams. The New Jersey exam has 110 questions within a 4 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.
Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the NJ exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of New Jersey law.
Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but New Jersey may have additional protected classes. Know both federal and New Jersey-specific protections cold — this topic appears on virtually every exam.
Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.
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