PSI NJ REAL ESTATE EXAM AND
PRACTICE EXAM NEWEST 2026/ 2027 |
NEW JERSEY PSI REAL ESTATE STATE
EXAM PREP WITH COMPLETE REAL
EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
Detail Information
Governing Authority New Jersey Real Estate Commission (NJREC)
Exam Provider PSI Services LLC
Prelicensing Education 75 hours (Salesperson); 150 hours (Broker)
Exam Questions 110 questions total
Time Allotted 4 hours
Passing Score 70%
Exam Fee $38 per attempt
License Validity Initial license; biennial renewal thereafter
Test Components National + State-specific sections
Minimum Age 18 years
,SECTION 1: AGENCY RELATIONSHIPS AND DISCLOSURE
(Questions 1-15)
Question 1: Sierra is a New Jersey real estate licensee representing Alex in the sale
of his condo. They receive an offer from another licensee, Jason, on behalf of his
buyer client, Will. To whom does Sierra owe some form of agency-related
disclosure?
A. Sierra doesn't owe agency-related disclosures to any transaction party.
B. Sierra only owes agency-related disclosures to her client, Alex, and the customer in
the transaction, Will.
C. Sierra only owes agency-related disclosures to the client she represents, Alex.
D. Sierra owes agency-related disclosures to her client, Alex, any other consumers in the
transaction, including Will, and her fellow licensee, Jason.
Answer: D. Sierra owes agency-related disclosures to her client, Alex, any other
consumers in the transaction, including Will, and her fellow licensee, Jason.
Rationale: Agency disclosure obligations extend to all transaction parties. The licensee
must disclose their agency relationship to their client (Alex), other consumers (Will), and
other licensees involved (Jason) .
Question 2: A salesperson lists a property with a contract that allows for
subagency and dual agency. The salesperson is:
A. An agent to the broker only
B. An agent to the principal only
C. An agent to the broker and a subagent to the principal
D. An independent contractor
,Answer: C. An agent to the broker and a subagent to the principal
Rationale: In a subagency relationship, the salesperson acts as an agent of the broker
and a subagent of the principal (the client). This creates a relationship where the
salesperson is accountable to both the broker and the principal .
Question 3: A salesperson holds two listings—an open listing on one property and
an exclusive listing on another. Neither contains a safety clause. One week after
both listings expire, the two owners exchange properties without previously being
shown the properties by the salesperson. What is the salesperson's entitlement to
commission?
A. May sue for full commission on both listings.
B. May sue for commission on the open listing only.
C. May demand full commission on the exclusive listing only.
D. Will receive no commission from either listing.
Answer: D. Will receive no commission from either listing.
Rationale: Without a safety clause (protection period), the expired listing does not
protect the broker's commission. An open listing offers no exclusive right to
commission. Since the owners exchanged properties without the salesperson's
involvement after the listings expired, no commission is due .
Question 4: The relationship in which the agent is placed in the position of trust
and confidence to the principal is known by the term:
, A. Agency
B. Fiduciary
C. Subagency
D. Dual agency
Answer: B. Fiduciary
Rationale: A fiduciary relationship is one in which the agent is placed in a position of
trust and confidence to the principal. This relationship imposes duties of loyalty,
confidentiality, and full disclosure .
Question 5: A broker establishes a company policy of charging no less than 6%
commission. Is this legal?
A. Yes, it is legal
B. No, it violates antitrust laws
C. Only if the broker is a Realtor
D. Only if the property is residential
Answer: A. Yes, it is legal
Rationale: A broker may establish a minimum commission policy. However, price-fixing
agreements among competing brokers are illegal under antitrust laws. A single broker
setting their own policy is permissible .
SECTION 2: CONTRACT AND PROPERTY LAW (Questions 6-
20)
PRACTICE EXAM NEWEST 2026/ 2027 |
NEW JERSEY PSI REAL ESTATE STATE
EXAM PREP WITH COMPLETE REAL
EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
Detail Information
Governing Authority New Jersey Real Estate Commission (NJREC)
Exam Provider PSI Services LLC
Prelicensing Education 75 hours (Salesperson); 150 hours (Broker)
Exam Questions 110 questions total
Time Allotted 4 hours
Passing Score 70%
Exam Fee $38 per attempt
License Validity Initial license; biennial renewal thereafter
Test Components National + State-specific sections
Minimum Age 18 years
,SECTION 1: AGENCY RELATIONSHIPS AND DISCLOSURE
(Questions 1-15)
Question 1: Sierra is a New Jersey real estate licensee representing Alex in the sale
of his condo. They receive an offer from another licensee, Jason, on behalf of his
buyer client, Will. To whom does Sierra owe some form of agency-related
disclosure?
A. Sierra doesn't owe agency-related disclosures to any transaction party.
B. Sierra only owes agency-related disclosures to her client, Alex, and the customer in
the transaction, Will.
C. Sierra only owes agency-related disclosures to the client she represents, Alex.
D. Sierra owes agency-related disclosures to her client, Alex, any other consumers in the
transaction, including Will, and her fellow licensee, Jason.
Answer: D. Sierra owes agency-related disclosures to her client, Alex, any other
consumers in the transaction, including Will, and her fellow licensee, Jason.
Rationale: Agency disclosure obligations extend to all transaction parties. The licensee
must disclose their agency relationship to their client (Alex), other consumers (Will), and
other licensees involved (Jason) .
Question 2: A salesperson lists a property with a contract that allows for
subagency and dual agency. The salesperson is:
A. An agent to the broker only
B. An agent to the principal only
C. An agent to the broker and a subagent to the principal
D. An independent contractor
,Answer: C. An agent to the broker and a subagent to the principal
Rationale: In a subagency relationship, the salesperson acts as an agent of the broker
and a subagent of the principal (the client). This creates a relationship where the
salesperson is accountable to both the broker and the principal .
Question 3: A salesperson holds two listings—an open listing on one property and
an exclusive listing on another. Neither contains a safety clause. One week after
both listings expire, the two owners exchange properties without previously being
shown the properties by the salesperson. What is the salesperson's entitlement to
commission?
A. May sue for full commission on both listings.
B. May sue for commission on the open listing only.
C. May demand full commission on the exclusive listing only.
D. Will receive no commission from either listing.
Answer: D. Will receive no commission from either listing.
Rationale: Without a safety clause (protection period), the expired listing does not
protect the broker's commission. An open listing offers no exclusive right to
commission. Since the owners exchanged properties without the salesperson's
involvement after the listings expired, no commission is due .
Question 4: The relationship in which the agent is placed in the position of trust
and confidence to the principal is known by the term:
, A. Agency
B. Fiduciary
C. Subagency
D. Dual agency
Answer: B. Fiduciary
Rationale: A fiduciary relationship is one in which the agent is placed in a position of
trust and confidence to the principal. This relationship imposes duties of loyalty,
confidentiality, and full disclosure .
Question 5: A broker establishes a company policy of charging no less than 6%
commission. Is this legal?
A. Yes, it is legal
B. No, it violates antitrust laws
C. Only if the broker is a Realtor
D. Only if the property is residential
Answer: A. Yes, it is legal
Rationale: A broker may establish a minimum commission policy. However, price-fixing
agreements among competing brokers are illegal under antitrust laws. A single broker
setting their own policy is permissible .
SECTION 2: CONTRACT AND PROPERTY LAW (Questions 6-
20)
