NJ REAL ESTATE EXAM QUESTIONS AND 100%
CORRECT ANSWERS|LATEST 2025/2026|GRADED
A+
Broker - ANSWER One who buys and sells for another for a fee.
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
1
Wicky
,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
2
Wicky
, 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
subagent - ANSWER the salesperson's relationship to the principal as the agent of the
broker
3
Wicky
CORRECT ANSWERS|LATEST 2025/2026|GRADED
A+
Broker - ANSWER One who buys and sells for another for a fee.
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
1
Wicky
,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
2
Wicky
, 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
subagent - ANSWER the salesperson's relationship to the principal as the agent of the
broker
3
Wicky
