50 New Jersey state law practice questions with explanations
50 free NJ state law practice questions for the PSI salesperson exam, mapped to the state outline, each explained and checked against the 2026 rules.
Rules covered through . Sources and corrections.
The short version
- 1Below are 50 original New Jersey law practice questions with explanations, spread across PSI's four state outline areas in about the exam's proportions: 3 on the Commission's powers, 5 on licensing, 37 on the rules for licensee activities and 5 on the additional laws.
- 2On the real PSI salesperson exam those areas carry 2, 3, 22 and 3 of the 30 New Jersey questions, inside one 110-question exam that needs 77 correct to pass.
- 3Every answer is checked against the current statute or Commission rule, including the rule changes that took effect January 20, 2026, and the scoring table at the end shows what your score means and what to review.
How to use these 50 questions
PSI's New Jersey candidate bulletin, updated February 1, 2026, gives the salesperson exam 110 scored questions in 4 hours, with 77 correct (70 percent) needed to pass. Thirty of those questions come from four New Jersey areas, weighted 2, 3, 22 and 3. This set keeps the same shape at a larger size: 3 questions on the Commission's duties and powers, 5 on licensing requirements, 37 on the statutes and rules governing licensee activities and 5 on the additional requirements.
We wrote every question ourselves from the statute or Commission rule it tests. They are not PSI questions, and PSI does not publish its items. They are also written to avoid repeating the questions elsewhere on this site, including our practice exam, so you can use both.
- Answer each section cold, with no notes open. Our suggestion is about a minute per question, which is faster than the roughly two minutes PSI's 4 hours allow, so the real thing feels roomy.
- Write down the number of every question you miss or guess on. A lucky guess is a miss for study purposes.
- Read the explanation for every miss, then find the rule in the cite it gives. The cite is what you will remember on test day, not our wording.
- Score yourself with the table at the end and review the areas it points to. Come back to the misses two or three days later and answer them again.
Duties and powers of the Real Estate Commission (questions 1 to 3)
PSI's outline lists two sub-items here: maintenance of records, and sanctions (fines, license suspension and revocation). Both rules live in N.J.S.A. 45:15-17 and N.J.A.C. 11:5-5.4.
Quick check
Saves to your topic scoreThe Real Estate Commission finds that a salesperson has broken the license law for the second time. Under N.J.S.A. 45:15-17, what is the largest fine it may impose for this violation?
Reveal answer (review only)
Answer: The answer is C, $10,000.
N.J.S.A. 45:15-17 allows a penalty of not more than $5,000 for a first violation and not more than $10,000 for any subsequent violation. The fine can come on top of, or instead of, probation, suspension or revocation.
Why the other answers do not fit
- A. $2,500
- The statute has no $2,500 tier.
- B. $5,000
- $5,000 is the cap for a first violation only.
- D. $25,000
- The statute stops at $10,000 for each subsequent violation.
Remember: $5,000 the first time, $10,000 every time after.
Question ID: bq-47-1
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA salesperson under investigation for mishandling a deposit lets her license lapse and tells the Commission it no longer has power over her. Is she right?
Reveal answer (review only)
Answer: The answer is A, No. A lapse or voluntary surrender does not end the Commission's jurisdiction over charges that arose while she was licensed.
The opening paragraph of N.J.S.A. 45:15-17 says a lapse, a suspension by operation of law or a voluntary surrender does not take away the Commission's jurisdiction to investigate or act, as long as the charges arose while the person was licensed.
Why the other answers do not fit
- B. Yes. The Commission can act only against people who hold a current license
- The statute says the opposite: letting the license lapse does not end the case.
- C. Yes, unless the buyer files a lawsuit within 30 days of the lapse
- Nothing in the statute ties the Commission's power to a consumer lawsuit.
- D. No, but the only sanction still available is a written reprimand
- The statute does not shrink the sanctions to a reprimand; fines, suspension and revocation all remain available.
Remember: You cannot outrun a complaint by letting your license lapse.
Question ID: bq-47-2
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Quick check
Saves to your topic scoreA broker wants to scan the firm's trust account records (ledgers, deposit records, receipts and reconciliations) and keep them only in electronic form. Under N.J.A.C. 11:5-5.4, is that allowed?
Reveal answer (review only)
Answer: The answer is D, Yes, if the records can be readily reproduced on paper and stay accessible for six years.
N.J.A.C. 11:5-5.4(e) lets these records be kept on paper or stored electronically, as long as the data can be readily reproduced on paper and stays accessible for six years. The records must be available to the Commission for inspection, compliance checks and copying.
Why the other answers do not fit
- A. No. Original paper records must be kept for six years
- The rule expressly allows electronic storage; paper is not required.
- B. Yes, but only for records more than two years old
- The rule sets no two-year waiting period for going electronic.
- C. No. Electronic storage is allowed only for email
- The rule allows electronic storage of the records generally, including items created by email; email is not the only kind.
Remember: Paper or digital is fine; printable and kept six years is not optional.
Question ID: bq-47-3
Revealing the answer makes this attempt review only.
Licensing requirements (questions 4 to 8)
Two sub-items: activities requiring a license, and types of licenses. Read every scenario for who is being paid and for what, because that decides whether a license is needed.
Quick check
Saves to your topic scoreKevin is not licensed. For a monthly fee, he collects rent from the tenants in his neighbor's six-unit building and finds new tenants when units open up. Under N.J.S.A. 45:15-3, Kevin is:
Reveal answer (review only)
Answer: The answer is B, Acting as a real estate broker and needs a license.
N.J.S.A. 45:15-3 defines a broker as anyone who, for a fee or other valuable consideration, rents or negotiates rentals of real estate or collects rent for others. Doing that for pay without a license is unlicensed brokerage.
Why the other answers do not fit
- A. Exempt, because he is not selling real estate
- The definition covers renting and collecting rent, not just sales.
- C. Exempt, as long as the owner signs a power of attorney
- The exemptions in N.J.S.A. 45:15-4 do not include a person acting under a power of attorney.
- D. Allowed to do this without a license for up to three buildings
- No building-count allowance exists in the statute.
Remember: Collecting rent for someone else for pay is broker work.
Question ID: bq-47-4
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreWhich person may sell a New Jersey house on someone else's behalf without a real estate license?
Reveal answer (review only)
Answer: The answer is C, The executor of the deceased owner's estate, acting in that role.
N.J.S.A. 45:15-4 exempts executors and administrators, along with owners acting on their own property, attorneys at law, receivers, trustees in bankruptcy, people selling under a court order, and certain New Jersey banks and insurance companies.
Why the other answers do not fit
- A. A friend of the owner who takes a 2% finder's fee
- A finder's fee for negotiating a sale is compensation for brokerage, and a friend is not on the exempt list.
- B. A licensed home inspector who negotiates the sale for a fee
- A home inspection license is not a real estate license, and negotiating sales for a fee is broker activity.
- D. An unlicensed assistant who shows the home and negotiates the price for a bonus
- Negotiating price for a bonus is brokerage work; an unlicensed assistant cannot do it.
Remember: Executors, administrators and owners are exempt. Helpers paid to negotiate are not.
Question ID: bq-47-5
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Quick check
Saves to your topic scoreLena meets every qualification for a New Jersey broker license, but she wants to keep working under another broker's supervision. Which license fits?
Reveal answer (review only)
Answer: The answer is A, Broker-salesperson.
N.J.S.A. 45:15-3 defines a broker-salesperson as a person qualified to be licensed as a broker who works under the supervision of a licensed broker.
Why the other answers do not fit
- B. Salesperson licensed with a referral company
- A referral company salesperson may only refer prospects; it is not the license for a qualified broker.
- C. Broker of record
- A broker of record is the broker responsible for a licensed firm, not someone working under another broker.
- D. Associate broker
- "Associate broker" is a title used in some other states. New Jersey's license is called broker-salesperson.
Remember: Broker-qualified but working under someone else: broker-salesperson.
Question ID: bq-47-6
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Quick check
Saves to your topic scoreRosa is a salesperson licensed with a real estate referral company. She refers a buyer to the broker who supervises her referral company, and the buyer closes on a home. From whom may Rosa accept payment for that referral?
Reveal answer (review only)
Answer: The answer is D, Only the licensed broker who supervises her referral company.
Under N.J.S.A. 45:15-3, a salesperson licensed with a referral company may refer prospects only to the supervising broker and may accept compensation only from that broker.
Why the other answers do not fit
- A. The buyer, after closing
- A buyer cannot pay a licensee directly for brokerage; the referral fee must come from the supervising broker.
- B. The seller, from the sale proceeds
- The seller is not her broker, and the statute limits who may pay her to the supervising broker.
- C. The agent who handled the sale
- Another licensee cannot pay her directly; only the supervising broker can.
Remember: Referral agents refer to one broker and are paid by that one broker.
Question ID: bq-47-7
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA salesperson says the seller of a home he sold still owes him his commission. Under N.J.S.A. 45:15-3, whom may the salesperson sue for compensation?
Reveal answer (review only)
Answer: The answer is B, Only the licensed broker he worked for when the claim arose.
N.J.S.A. 45:15-3 bars a salesperson or broker-salesperson from suing anyone for compensation other than the licensed broker who employed them when the claim arose, and they must prove they were licensed at that time.
Why the other answers do not fit
- A. The seller, because the seller signed the listing
- The listing is the broker's agreement with the seller. Only the broker can pursue the seller.
- C. The buyer, if the seller has no assets
- The buyer owes the salesperson nothing directly, and the statute limits the suit to his own broker.
- D. The cooperating broker who represented the buyer
- His claim runs only against his own broker, not another firm.
Remember: A salesperson's commission claim is always against their own broker.
Question ID: bq-47-8
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Broker offices, pay and trust money (questions 9 to 21)
This is the first slice of the 22-item area: broker and salesperson relationships, commissions and accounting, place of business and the licensee's own deals. Questions 9 to 15 come from N.J.A.C. 11:5-4.1, 11:5-4.4, 11:5-3.16 and N.J.S.A. 45:15-17.
Quick check
Saves to your topic scoreA broker hires a new salesperson on Monday and wants her running open houses that weekend. Under N.J.A.C. 11:5-4.1, when must their written agreement be signed?
Reveal answer (review only)
Answer: The answer is A, Before she engages in any brokerage activity.
N.J.A.C. 11:5-4.1(a) requires the broker and salesperson to sign a written agreement before the salesperson engages in any brokerage activity. It must set her compensation rate, payment timing and post-termination pay.
Why the other answers do not fit
- B. Within 30 days after she starts
- There is no 30-day grace period; the agreement comes first.
- C. Before her first closing
- Open houses are brokerage activity, so waiting until a closing is too late.
- D. Only if she will work as an independent contractor
- The Commission allows employee or independent contractor status, and the agreement is required either way.
Remember: No signed agreement, no brokerage work.
Question ID: bq-47-9
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA salesperson leaves her brokerage with three deals still pending. Under N.J.A.C. 11:5-4.1, how soon must the broker give her a written accounting of all money owed now or in the future?
Reveal answer (review only)
Answer: The answer is C, Within 30 days of the end of the affiliation.
N.J.A.C. 11:5-4.1(e) requires a written accounting within 30 days of the termination of the affiliation, covering money due at termination and money that may come due later.
Why the other answers do not fit
- A. Within 10 business days
- 10 business days is how fast a broker pays a salesperson's share after receiving a commission.
- B. Within 5 business days
- 5 business days is how long a broker has to deposit commission money it receives into its general business account.
- D. Within 90 days
- 90 days is the accounting deadline for advance fees, under a different rule.
Remember: Leaving a firm: written accounting within 30 days.
Question ID: bq-47-10
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA broker wants to run her main office from the converted front room of her house. What does N.J.A.C. 11:5-4.4 require?
Reveal answer (review only)
Answer: The answer is B, An office independent of the living quarters, with a separate exterior entrance plainly visible from the street.
N.J.A.C. 11:5-4.4(b) requires an office in a residence to be independent of the living quarters, with a separate exterior entrance plainly visible from the street. Under 11:5-4.4(a), the office must also be open to the public during usual business hours. The residence rule does not apply to offices that existed before December 1, 1963.
Why the other answers do not fit
- A. Nothing extra, as long as clients come by appointment
- The main office must be open to the public during usual business hours, not by appointment only.
- C. A letter from the municipal zoning officer filed with the Commission
- Local zoning may apply, but the Commission rule asks for a separate entrance, not a zoning letter.
- D. At least 500 square feet of dedicated floor space
- The rule sets no minimum size. It requires independence from the living quarters and a separate, plainly visible entrance.
Remember: Home office: its own entrance, seen from the street.
Question ID: bq-47-11
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreBroker Tom wants to use the home of one of the salespeople he employs as the firm's place of business. Under N.J.A.C. 11:5-4.4:
Reveal answer (review only)
Answer: The answer is D, It is not allowed; a broker's place of business may not be in the dwelling of a salesperson the broker employs.
N.J.A.C. 11:5-4.4(c) says a broker's maintained place of business may not be located in the dwelling of any salesperson or referral agent the broker employs.
Why the other answers do not fit
- A. It is allowed if the home has a separate exterior entrance
- A separate entrance is the rule for a broker's own residence, not a salesperson's home.
- B. It is allowed if the salesperson signs a lease with the firm
- A lease does not change the outright ban.
- C. It is allowed after a Commission inspection
- No inspection can approve what the rule forbids.
Remember: The office can be in the broker's home, never a salesperson's.
Question ID: bq-47-12
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA salesperson wants to buy, for herself, a home listed by another firm. Under N.J.S.A. 45:15-17(q), what must she do?
Reveal answer (review only)
Answer: The answer is C, Disclose to the seller in the contract of sale that she is a licensee.
N.J.S.A. 45:15-17(q) makes it a violation for a licensee to buy property without first disclosing to the seller, in the contract of sale, the buyer's status as a licensee.
Why the other answers do not fit
- A. Nothing, because she is not acting as anyone's agent
- The duty applies whenever a licensee buys, even for personal use.
- B. Tell the listing agent orally before making the offer
- The disclosure must be in the contract of sale, not just spoken.
- D. Get her broker's written consent and file it with the Commission
- The statute requires disclosure to the seller in the contract, not a filing with the Commission.
Remember: Buying as a licensee? Say so in the contract.
Question ID: bq-47-13
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA salesperson owns 25% of an LLC that owns a duplex. She lists and sells the duplex through her firm. Under N.J.S.A. 45:15-17(p), she must:
Reveal answer (review only)
Answer: The answer is A, Disclose her interest and her license status in the contract of sale.
N.J.S.A. 45:15-17(p) bars a licensee from selling property in which she is interested "in any manner whatsoever" unless she discloses that interest and her license status in the sales contract.
Why the other answers do not fit
- B. Disclose her interest only if she owns more than 50%
- "Any manner whatsoever" means a 25% share counts.
- C. Have a different brokerage handle the sale
- She may handle the sale; the rule requires disclosure, not a different firm.
- D. Give up her share of the commission
- Nothing requires her to give up her commission.
Remember: Any ownership interest, however small, goes in the contract.
Question ID: bq-47-14
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Quick check
Saves to your topic scoreA salesperson wants her commissions paid to a single-member LLC she formed. Under N.J.A.C. 11:5-3.16, which statement is correct?
Reveal answer (review only)
Answer: The answer is D, She may register one entity in which she has an ownership interest, and her broker may pay her commission to it.
N.J.A.C. 11:5-3.16 lets a salesperson or broker-salesperson register one entity at a time in which she has an ownership interest. Her employing or contracting broker may then pay the commission to that registered entity.
Why the other answers do not fit
- A. The buyer or seller may pay the LLC directly at closing
- The money must still come from her broker, never directly from a client.
- B. She may register as many LLCs as she likes
- The rule allows only one registered entity at a time.
- C. The LLC needs its own broker license
- The entity is registered with the Commission, not licensed; the rule does not give it a broker license.
Remember: One registered LLC, paid by your broker, nobody else.
Question ID: bq-47-15
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Questions 16 to 21 cover trust funds and escrow bookkeeping. Every answer comes from N.J.A.C. 11:5-5.1, 11:5-5.3 or 11:5-5.4, so if you miss two or more, read those three rules start to finish.
Quick check
Saves to your topic scoreWhere must a resident New Jersey broker keep the special account for money held for others?
Reveal answer (review only)
Answer: The answer is B, At an authorized financial institution in New Jersey.
N.J.A.C. 11:5-5.1(a) requires a resident broker to keep a special account at an authorized financial institution in New Jersey, separate from other business or personal accounts.
Why the other answers do not fit
- A. At any FDIC-insured bank in the United States
- Federal insurance alone is not the test; for a resident broker the institution must be in New Jersey.
- C. In the office safe, as long as a ledger is kept
- Money held for others goes into a special account at a financial institution, not a safe.
- D. In the firm's operating account, with a separate ledger for client money
- Keeping client money in the operating account is commingling, ledger or not.
Remember: Resident brokers bank trust money in New Jersey, in a separate account.
Question ID: bq-47-16
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA broker opens a second trust account at a different bank. Under N.J.A.C. 11:5-5.1(b), when must the broker tell the Commission?
Reveal answer (review only)
Answer: The answer is C, Immediately, by affidavit or certification.
Brokers list every special account on their license application or renewal, and N.J.A.C. 11:5-5.1(b) requires any new account or change to be reported to the Commission immediately by affidavit or certification.
Why the other answers do not fit
- A. At the next license renewal
- The renewal is when existing accounts are listed; a new account cannot wait for it.
- B. Within 30 days
- The rule says immediately, not 30 days.
- D. Only if the Commission audits the firm
- Reporting is required whether or not an audit happens.
Remember: New trust account? Tell the Commission right away.
Question ID: bq-47-17
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA broker needs to refund a $2,000 deposit to a buyer from the trust account. Which withdrawal method does N.J.A.C. 11:5-5.4 prohibit?
Reveal answer (review only)
Answer: The answer is A, A check made payable to "Cash".
N.J.A.C. 11:5-5.4(b) allows trust withdrawals only by bank transfer, in state or interstate, or by check to a named payee. Cash withdrawals are not allowed.
Why the other answers do not fit
- B. A check payable to the buyer by name
- A check to a named payee is an approved method.
- C. A bank transfer to the buyer's account
- Bank transfers are expressly allowed.
- D. An interstate wire transfer to the buyer's bank
- Interstate transfers are expressly allowed.
Remember: Trust money leaves by named check or transfer, never as cash.
Question ID: bq-47-18
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Quick check
Saves to your topic scoreHow often must a New Jersey broker reconcile the trust account checkbook balance, the bank statement balance and the client ledger balances?
Reveal answer (review only)
Answer: The answer is D, At least quarterly.
N.J.A.C. 11:5-5.4(b) requires the broker to reconcile the checkbook, bank statement and client ledger balances at least quarterly and keep copies of the reconciliations.
Why the other answers do not fit
- A. Once a year, before license renewal
- Once a year is too infrequent under the rule.
- B. Only when the Commission asks
- The duty exists whether or not the Commission asks.
- C. Every month, by rule
- Monthly is a good habit, but the rule's minimum is quarterly.
Remember: Three balances, matched at least every quarter.
Question ID: bq-47-19
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Quick check
Saves to your topic scoreA broker collects a $500 advance fee from a seller to cover marketing costs before the home sells. Under N.J.A.C. 11:5-5.3, the broker must:
Reveal answer (review only)
Answer: The answer is B, Give the seller an accounting of the money within 90 days.
Under N.J.A.C. 11:5-5.3, a broker who charges or collects an advance fee of more than $25 must give the principal an accounting of that money within 90 days.
Why the other answers do not fit
- A. Refund the full fee if the home does not sell
- The rule requires an accounting, not an automatic refund.
- C. Deposit it in the operating account with no separate record
- Advance fees must be accounted for, so keeping no record breaks the rule.
- D. Get Commission approval before collecting any advance fee
- No advance approval from the Commission is required.
Remember: Advance fee over $25: account for it within 90 days.
Question ID: bq-47-20
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Quick check
Saves to your topic scoreA firm handles rentals. For which payment may it accept a tenant's credit card charge into a trust account under N.J.A.C. 11:5-5.1?
Reveal answer (review only)
Answer: The answer is C, A 10-week summer rental with a set end date.
N.J.A.C. 11:5-5.1(i) allows credit card charges into trust only for short-term rentals: residential rentals of no more than 125 consecutive days with a set end date. The broker needs a separate trust account, the owner's written authorization and a written cancellation policy.
Why the other answers do not fit
- A. A $10,000 earnest money deposit on a home purchase
- Sale deposits are outside the short-term rental exception.
- B. First month's rent and security deposit on a one-year lease
- A one-year lease is far longer than 125 days.
- D. A deposit on a commercial office lease
- The exception covers residential short-term rentals, not commercial leases.
Remember: Credit cards into trust: short-term residential rentals only, 125 days or less.
Question ID: bq-47-21
Revealing the answer makes this attempt review only.
Agency, contracts, listings and attorney review (questions 22 to 30)
Questions 22 to 26 test the contract and listing rules in N.J.A.C. 11:5-6.2: the attorney review clause, commission splits and the negotiable fee notice.
Quick check
Saves to your topic scoreOn the last day of attorney review, the buyer's attorney hand-delivers a notice of disapproval to the listing broker's office at 4 p.m. Under the clause required by N.J.A.C. 11:5-6.2, when is that delivery effective?
Reveal answer (review only)
Answer: The answer is A, When it is delivered to the broker's office.
The required clause lets the attorney give notice by certified mail, telegram or personal delivery. Certified mail and telegram are effective upon sending, and personal delivery is effective upon delivery to the broker's office. The notice must also go to the other party.
Why the other answers do not fit
- B. Only when the seller personally reads it
- The clause ties effectiveness to delivery at the broker's office, not to when anyone reads it.
- C. On the next business day
- Delivery within the three days counts that day.
- D. Only if it is also sent by certified mail
- Personal delivery is a method on its own; it does not need certified mail as backup.
Remember: Hand delivery counts the moment it reaches the broker's office.
Question ID: bq-47-22
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Quick check
Saves to your topic scoreBoth attorneys need two more days to finish negotiating repairs during attorney review. What does the clause required by N.J.A.C. 11:5-6.2 allow?
Reveal answer (review only)
Answer: The answer is D, The buyer and seller may agree in writing to extend it.
The "Counting the Time" paragraph of the attorney review clause lets the buyer and seller extend the review period by agreeing in writing.
Why the other answers do not fit
- A. Nothing; the three-day period can never be extended
- The clause expressly allows a written extension.
- B. The listing agent may extend it by phone
- Agents cannot extend it, and a phone call is not a writing.
- C. The seller alone may extend it
- An extension takes both parties' written agreement.
Remember: Attorney review can be extended, but only in writing by both sides.
Question ID: bq-47-23
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Quick check
Saves to your topic scoreA salesperson prepares a contract for a three-family house and leaves out the attorney review clause. How does the Commission treat that omission under N.J.A.C. 11:5-6.2?
Reveal answer (review only)
Answer: The answer is B, As the unauthorized practice of law and conduct showing unworthiness and incompetency.
N.J.A.C. 11:5-6.2(g) says leaving required language out of a licensee-prepared contract or lease is treated as the unauthorized practice of law and as conduct showing unworthiness and incompetency, which can be sanctioned under N.J.S.A. 45:15-17(e).
Why the other answers do not fit
- A. As a minor paperwork error with no sanction
- The rule treats it as serious misconduct, not a paperwork slip.
- C. As making the contract void from the start
- The rule addresses the licensee's discipline; it does not declare the contract void.
- D. As a violation only if the buyer later complains
- The violation is the omission itself; no complaint is needed.
Remember: No attorney review clause = unauthorized practice of law.
Question ID: bq-47-24
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Quick check
Saves to your topic scoreA seller asks the listing broker how the commission will be divided with a cooperating broker. Under N.J.A.C. 11:5-6.2, the listing broker must:
Reveal answer (review only)
Answer: The answer is C, Tell the seller the rate or amount of the split on request.
N.J.A.C. 11:5-6.2(d) requires the listing broker, on request, to tell the seller the rate or amount of any commission split or distribution.
Why the other answers do not fit
- A. Refuse, because splits are confidential between brokers
- The split is not confidential from the seller who pays the commission.
- B. Tell the seller only after closing
- The duty applies when the seller asks, not after closing.
- D. Refer the seller to the multiple listing service
- The listing broker must answer; sending the seller elsewhere does not meet the duty.
Remember: Seller asks about the split, the listing broker tells.
Question ID: bq-47-25
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Quick check
Saves to your topic scoreIn a listing agreement for a two-family home, how must the notice telling the seller that the commission is negotiable appear?
Reveal answer (review only)
Answer: The answer is A, In print larger than the agreement's predominant print size.
For one-to-four family listings, N.J.A.C. 11:5-6.2(c) requires a notice in the commission clause, in print larger than the predominant print, beginning "As seller you have the right to individually reach an agreement on any fee, commission" and stating that no fee is fixed by government, a trade association or a multiple listing service.
Why the other answers do not fit
- B. In bold, at the same size as the rest of the agreement
- Bold at the same size does not meet the larger-print requirement.
- C. On a separate page signed by the broker of record
- The notice belongs in the commission clause of the listing itself.
- D. Only in the multiple listing service entry
- The notice is for the seller, in the listing agreement, not in the MLS.
Remember: The negotiable fee notice is printed bigger than everything around it.
Question ID: bq-47-26
Revealing the answer makes this attempt review only.
Questions 27 to 30 come from P.L. 2024, c.32, the 2024 agency law. If these feel new, your course materials may predate August 2024.
Quick check
Saves to your topic scoreA seller's listing expires without a sale. A month later, a buyer asks the former listing agent the lowest price the seller had said she would take. Under P.L. 2024, c.32, the agent:
Reveal answer (review only)
Answer: The answer is D, Must keep it confidential, because that duty survives termination.
P.L. 2024, c.32 ends most duties when a brokerage relationship ends, but not the duty to account for money and property or the duty not to disclose confidential information from an agency relationship, except under subpoena or court order, as otherwise provided by law, or as the client expressly authorizes.
Why the other answers do not fit
- A. May share it, because the agency relationship has ended
- Confidentiality is one of the duties that continues after termination.
- B. May share it if the buyer is now the agent's client
- A new client relationship does not release the former client's confidences.
- C. Must share it, because licensees owe honesty to all parties
- Honesty does not require revealing a former client's confidential bottom line.
Remember: The listing ends; the secrets stay kept.
Question ID: bq-47-27
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreThe seller agrees to pay part of the buyer's agent's compensation at closing. Under P.L. 2024, c.32, what does that payment do?
Reveal answer (review only)
Answer: The answer is B, It does not create an agency relationship between the seller and the buyer's agent.
P.L. 2024, c.32 says payment of compensation does not by itself establish an agency relationship between the party who paid and the brokerage firm. Agency comes from the brokerage services agreement, not from who pays.
Why the other answers do not fit
- A. It makes the buyer's agent a disclosed dual agent
- Dual agency needs both parties' informed written consent, not a payment.
- C. It turns the buyer's agent into a transaction broker
- A firm becomes a transaction broker by agreement, not because the seller pays.
- D. It makes the buyer's agent the seller's subagent
- Payment alone creates no agency, sub or otherwise.
Remember: Who pays does not decide whom you represent.
Question ID: bq-47-28
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA firm acts as a disclosed dual agent and will be paid by both the buyer and the seller. Under P.L. 2024, c.32, that is allowed if:
Reveal answer (review only)
Answer: The answer is C, The sources and amounts of compensation are disclosed in writing to the buyer and the seller.
Under P.L. 2024, c.32, a disclosed dual agent may be paid by both parties if the sources and amounts of compensation are disclosed in writing to both the buyer and the seller. The firm also needs both parties' informed consent to act as a dual agent.
Why the other answers do not fit
- A. The firm's broker of record approves it
- Internal approval does not replace written disclosure to both parties.
- B. The total compensation stays under 6%
- The law sets no percentage cap; compensation is negotiable.
- D. The seller is told, since the seller pays most of it
- Both parties must get the written disclosure, not just one.
Remember: Paid by both sides? Both sides get it in writing.
Question ID: bq-47-29
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreWhich item must a seller's residential brokerage services agreement include under P.L. 2024, c.32?
Reveal answer (review only)
Answer: The answer is A, Whether the listing will be placed in a multiple listing service or similar database.
P.L. 2024, c.32 lists what a seller agreement must cover: the term, the firm's appointment as the seller's agent, exclusive or nonexclusive status, consent to disclosed dual or designated agency, the firm's compensation and how it is calculated and shared, and whether a notice of the property will be circulated in a database such as a multiple listing service.
Why the other answers do not fit
- B. The lowest price the seller will accept
- A bottom price is confidential strategy, not a required term.
- C. The name of the buyer's agent
- There is usually no buyer yet when the listing is signed.
- D. A promise that the home will sell within the listing term
- A promise to sell within the listing term is not a required provision of the seller agreement.
Remember: Seller agreements say whether the listing goes in the MLS.
Question ID: bq-47-30
Revealing the answer makes this attempt review only.
Advertising, inducements, rebates and disclosures (questions 31 to 39)
Most of these come from the advertising rule, N.J.A.C. 11:5-6.1, as amended January 20, 2026. Watch for the exact words a rule requires: PSI likes to offer three phrases that sound official and one that is.
Quick check
Saves to your topic scoreA contract on a listing cleared attorney review two weeks ago, and closing is next month. The agent wants to post a "Just Sold!" graphic today. Under N.J.A.C. 11:5-6.1, this is:
Reveal answer (review only)
Answer: The answer is D, Not allowed until the closing at which title transfers; until then, ads must say "under contract".
N.J.A.C. 11:5-6.1 says an ad may not indicate that a property has been sold, or that a licensee took part in its sale, until the closing at which title passes. Before closing, ads must say "under contract" after a licensee-prepared contract clears attorney review, or after a contract not subject to attorney review is fully executed and delivered to all parties.
Why the other answers do not fit
- A. Allowed, because attorney review has ended
- The end of attorney review does not make it sold; closing does.
- B. Allowed if the seller consents in writing
- Seller consent cannot override the rule.
- C. Allowed if the post also says "pending"
- Adding "pending" does not fix a claim that the home is sold.
Remember: Use "sold" only after title transfers at closing. Before closing, use "under contract" once a licensee-prepared contract clears attorney review, or a contract not subject to review is fully executed and delivered to all parties.
Question ID: bq-47-31
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA salesperson's ad says, "Only $25,000 down!" Under N.J.A.C. 11:5-6.1, which words must the ad include?
Reveal answer (review only)
Answer: The answer is B, "to a qualified buyer".
N.J.A.C. 11:5-6.1(f) requires an ad that mentions a down payment, monthly payment, carrying charges or an obtainable mortgage to include the words "to a qualified buyer." Under 6.1(g), estimated figures also need a qualifier such as "approximate" or "estimated."
Why the other answers do not fit
- A. "Subject to credit check"
- The rule names specific words, and these are not them.
- C. "Equal Housing Opportunity"
- That phrase is common in housing ads, but it is not what 6.1(f) requires here.
- D. "Rates subject to change"
- This is not the wording the rule requires for down payment ads.
Remember: Mention the down payment, add "to a qualified buyer."
Question ID: bq-47-32
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA franchised brokerage office advertises under the national franchise's trade name. Under N.J.A.C. 11:5-6.1(j), which statement must its ads generally include?
Reveal answer (review only)
Answer: The answer is C, "Each office is independently owned and operated".
N.J.A.C. 11:5-6.1(j) bars shared names or insignia that suggest common ownership, except for branches of one broker, and requires franchisees to include the statement "each office is independently owned and operated," with listed exceptions.
Why the other answers do not fit
- A. "Licensure does not imply endorsement"
- That line is required only when an ad mentions Commission licensure.
- B. "Member of the multiple listing service"
- No rule requires this line in franchise ads; the franchise rule requires the ownership statement.
- D. "In New Jersey, broker compensation is fully negotiable and not set by law"
- That line is required only when an ad mentions a commission rate or compensation amount.
Remember: Franchise ads: each office is independently owned and operated.
Question ID: bq-47-33
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreWhich promotion requires a written disclosure under N.J.A.C. 11:5-6.1(m)?
Reveal answer (review only)
Answer: The answer is A, A free home warranty worth $1,200 at retail for sellers who list after a listing presentation.
N.J.A.C. 11:5-6.1(m) requires written disclosure when an offer gives a monetary benefit greater than $1,000 at retail. It must state any action needed to qualify (attending a listing presentation counts), the delivery date and the licensee's compensation, and it is due no later than when the offer is extended.
Why the other answers do not fit
- B. A free $300 pre-listing cleaning for any seller who lists
- $300 is under the $1,000 written disclosure threshold.
- C. A $750 gift card for buyers who close with the firm
- $750 is under the threshold.
- D. A free $400 staging consultation with no conditions
- $400 is under the threshold.
Remember: Over $1,000 retail? Put the conditions in writing.
Question ID: bq-47-34
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA salesperson gives a seller a written comparative market analysis. Under N.J.A.C. 11:5-6.1(m), what must the CMA state?
Reveal answer (review only)
Answer: The answer is D, That it is not an appraisal, in print as large as its predominant text.
N.J.A.C. 11:5-6.1(m) says a comparative market analysis is not an appraisal, and any written CMA given to a consumer must say so in print as large as the CMA's predominant print.
Why the other answers do not fit
- A. The salesperson's appraiser license number
- A salesperson preparing a CMA is not acting as an appraiser.
- B. That the seller must list with the firm to rely on it
- No such condition is required, and it would mislead.
- C. A guaranteed sale price range
- A CMA is an estimate; guaranteeing a price would be a misrepresentation.
Remember: A CMA must say it is not an appraisal.
Question ID: bq-47-35
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA broker agrees in a written buyer agency agreement, at the start of the relationship, to rebate part of the commission to a residential buyer at closing. What else must the broker do under N.J.S.A. 45:15-17(k)?
Reveal answer (review only)
Answer: The answer is B, Recommend that the buyer contact a tax professional about the rebate's tax implications.
N.J.S.A. 45:15-17(k) allows only a broker to rebate part of the commission, only to a purchaser of residential property, under a written agreement made at the start, with a recommendation to see a tax professional, paid at closing as a commission credit or a check from the closing agent.
Why the other answers do not fit
- A. Get the seller's written consent to the rebate
- The seller's consent is not a condition.
- C. Pay the rebate in cash to the buyer after closing
- The rebate is paid at closing as a credit or a closing agent's check, not cash afterward.
- D. Have the salesperson pay the rebate from her own share
- Only the broker may rebate; salespersons cannot pay rebates.
Remember: Rebates: broker only, residential buyer only, in writing up front, tax pro recommended.
Question ID: bq-47-36
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA salesperson refers a buyer to a mortgage lender that is affiliated with her brokerage. She will not receive any fee for the referral. Under N.J.A.C. 11:5-6.8:
Reveal answer (review only)
Answer: The answer is C, She must still give the buyer written disclosure of the affiliation.
N.J.A.C. 11:5-6.8 requires written disclosure of the affiliation whenever a licensee refers a buyer or borrower to an affiliated mortgage lender or broker, even if the licensee receives no fee. The required statement begins "YOU ARE UNDER NO OBLIGATION TO USE THE MORTGAGE SERVICES OF."
Why the other answers do not fit
- A. No disclosure is needed because she earns nothing
- The rule applies even when no fee is paid.
- B. She must disclose the affiliation only if the buyer asks
- The disclosure is required on referral, whether or not the buyer asks.
- D. She may not refer buyers to an affiliated lender at all
- Referrals are allowed with the written disclosure.
Remember: Affiliated lender? Disclose it in writing, fee or no fee.
Question ID: bq-47-37
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA buyer asks a salesperson whether there is a group home for people with disabilities on the street. Under N.J.A.C. 11:5-6.4(d), the salesperson should:
Reveal answer (review only)
Answer: The answer is A, Not discuss it, and tell the buyer to investigate on their own.
N.J.A.C. 11:5-6.4(d) generally requires licensees to share what they know about social conditions when asked, but the same rule says licensees may not ask about or give information on a neighborhood's racial composition or the presence of a group home. The licensee tells the buyer they may conduct their own investigation.
Why the other answers do not fit
- B. Share what she knows, as she would for any social condition
- This is the exception to the social conditions rule; a group home is off limits.
- C. Check municipal records and report back
- Researching and reporting it is still discussing it.
- D. Ask the seller and pass the answer along in writing
- Passing along the seller's answer is still discussing it.
Remember: Group homes, like racial makeup, are not for discussion.
Question ID: bq-47-38
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreWhich title may appear on the business card of a salesperson licensed with a referral company under N.J.A.C. 11:5-6.1(e)?
Reveal answer (review only)
Answer: The answer is D, "Referral associate".
N.J.A.C. 11:5-6.1(e) requires a business card to show the license type. For a salesperson licensed with a referral company, the card must use one of three phrases: "salesperson (referral)," "real estate salesperson licensed with a real estate referral company" or "referral associate."
Why the other answers do not fit
- A. "Real estate agent"
- This hides that the license is limited to referrals.
- B. "Sales associate"
- This suggests a full salesperson license.
- C. "Broker associate"
- This suggests a broker license the person does not hold.
Remember: Referral licensees say "referral" on the card.
Question ID: bq-47-39
Revealing the answer makes this attempt review only.
Other New Jersey laws on the outline (questions 40 to 45)
The last sub-item of the 22-item area names nine laws, from the Farmland Reassessment Act (the statute is the Farmland Assessment Act of 1964) to the Freshwater Wetlands Protection Act. Each question asks for the one fact that identifies a law.
Quick check
Saves to your topic scoreWhich parcel can qualify for farmland assessment under New Jersey's Farmland Assessment Act of 1964, assuming the other requirements are met?
Reveal answer (review only)
Answer: The answer is B, 6 acres of hay actively farmed for the 2 years before the tax year.
Under N.J.S.A. 54:4-23.2, land must be at least 5 acres and actively devoted to agricultural or horticultural use for the 2 successive years before the tax year.
Why the other answers do not fit
- A. 3 acres of vegetables farmed for the past 5 years
- 3 acres is under the 5-acre minimum.
- C. 20 acres of woods the owner plans to start farming next year
- The land must already have 2 years of active farm use.
- D. 4 acres of orchard farmed for 10 years
- 4 acres is under the 5-acre minimum, however long it has been farmed.
Remember: Farmland assessment: 5 acres, 2 years.
Question ID: bq-47-40
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA homeowner asks a municipal zoning board of adjustment for a use variance under N.J.S.A. 40:55D-70(d) to run a small store in a residential zone. Approval requires:
Reveal answer (review only)
Answer: The answer is C, The affirmative vote of at least five members.
The Municipal Land Use Law lets the zoning board of adjustment grant (d) variances for special reasons, such as a use not permitted in the district, but only by the affirmative vote of at least five members of a municipal board.
Why the other answers do not fit
- A. A simple majority of the members present
- A simple majority is not enough for a (d) variance.
- B. Approval by the municipal governing body only
- The zoning board of adjustment, not the governing body, grants (d) variances.
- D. A unanimous vote of the planning board
- The zoning board of adjustment decides (d) variances, and unanimity is not the standard.
Remember: Use variance: at least five yes votes.
Question ID: bq-47-41
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreWho adopts New Jersey's State Uniform Construction Code?
Reveal answer (review only)
Answer: The answer is A, The Commissioner of Community Affairs.
Under the State Uniform Construction Code Act, the Commissioner of Community Affairs adopts the code after a public hearing (N.J.S.A. 52:27D-123). Municipalities enforce it but do not write it.
Why the other answers do not fit
- B. Each municipal construction official
- Local officials enforce the code; they do not adopt it.
- C. The Real Estate Commission
- The Real Estate Commission regulates licensees, not construction.
- D. Each county planning board
- County planning boards do not adopt the building code.
Remember: One statewide building code, adopted by DCA's commissioner.
Question ID: bq-47-42
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreWhich landlord must give each new tenant the Truth in Renting statement at or before move-in and keep it posted where tenants can see it?
Reveal answer (review only)
Answer: The answer is D, An owner who lives in one unit of a four-unit building and rents the other three.
The Truth in Renting Act excludes rental premises of two units or fewer, owner-occupied premises of three units or fewer, and hotels, motels and guest houses for transient or seasonal guests (N.J.S.A. 46:8-44). Covered landlords give each new tenant the statement at or before occupancy and keep it posted (46:8-46).
Why the other answers do not fit
- A. An owner renting one unit of a two-family house she does not live in
- Premises with two units or fewer are excluded.
- B. An owner who lives in one unit of a three-unit building
- Owner-occupied premises of three units or fewer are excluded.
- C. A shore motel renting rooms to seasonal guests
- Hotels and motels serving transient or seasonal guests are excluded.
Remember: Owner-occupied 4 units is covered; 3 or fewer is not.
Question ID: bq-47-43
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA builder wants to put a house on part of a freshwater wetland on a lot in Morris County. Under the Freshwater Wetlands Protection Act, whose permit does the builder need?
Reveal answer (review only)
Answer: The answer is B, The New Jersey Department of Environmental Protection.
Under N.J.S.A. 13:9B-9, anyone proposing a regulated activity in a freshwater wetland must apply to the Department of Environmental Protection for a freshwater wetlands permit.
Why the other answers do not fit
- A. The Pinelands Commission
- The Pinelands Commission runs the Pinelands, not freshwater wetlands permits statewide.
- C. The Real Estate Commission
- The Real Estate Commission does not issue land use permits.
- D. The county clerk
- The county clerk records documents; it does not issue wetlands permits.
Remember: Wetlands work needs a DEP permit.
Question ID: bq-47-44
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreWhich deed is fully exempt from New Jersey's Realty Transfer Fee under N.J.S.A. 46:15-10?
Reveal answer (review only)
Answer: The answer is C, An executor's deed distributing a deceased owner's house to an heir.
N.J.S.A. 46:15-10 fully exempts, among others, deeds for under $100, deeds between spouses or between parent and child, deeds recorded within 90 days after a divorce decree between the former spouses, and an executor's or administrator's distribution to heirs or devisees.
Why the other answers do not fit
- A. A sale from a brother to his sister for $250,000
- Siblings are not on the exempt list.
- B. A sale from a grandmother to her grandson for $300,000
- Only parent and child transfers are exempt, not grandparent and grandchild.
- D. An investor's sale of a two-family house to a first-time buyer
- An ordinary sale to a first-time buyer is not a full exemption.
Remember: Parent to child, spouse to spouse, executor to heir: exempt. Siblings and grandkids: not.
Question ID: bq-47-45
Revealing the answer makes this attempt review only.
Additional requirements (questions 46 to 50)
Three exam items share four topics here: the Real Estate Sales Full Disclosure Act, the Law Against Discrimination, the Real Estate Guaranty Fund and the Timeshare Act. You cannot know which three will appear, so cover all four.
Quick check
Saves to your topic scoreA New Jersey resident buys a lot in an out-of-state subdivision that is registered and offered in New Jersey under the Real Estate Sales Full Disclosure Act. What cancellation right does the buyer have?
Reveal answer (review only)
Answer: The answer is A, At least seven days to cancel without penalty.
The Commission's Bureau of Subdivided Land Sales Control explains that the Full Disclosure Act and the Timeshare Act give buyers a public offering statement and a minimum seven-day right to rescind a purchase without penalty.
Why the other answers do not fit
- B. Three business days, the same as attorney review
- Attorney review is a separate rule for licensee-prepared contracts.
- C. No right to cancel once the contract is signed
- The Act gives at least seven days to cancel.
- D. 30 days, but with a 10% penalty
- The right to rescind carries no penalty.
Remember: Registered out-of-state land: seven days to cancel, no penalty.
Question ID: bq-47-46
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA developer markets timeshares at a Florida resort to New Jersey residents at sales events held in New Jersey. Does the New Jersey Real Estate Timeshare Act apply?
Reveal answer (review only)
Answer: The answer is B, Yes, because the plan is offered for sale in New Jersey.
N.J.S.A. 45:15-16.52 applies the Act to timeshare plans with an accommodation in New Jersey and to plans offered for sale in New Jersey, wherever the property is and wherever the offer comes from.
Why the other answers do not fit
- A. No, because the resort is outside New Jersey
- Location outside New Jersey does not matter once the plan is offered here.
- C. Only if a New Jersey licensee makes the sale
- Coverage depends on where the plan is offered, not who sells it.
- D. Only after the buyer uses the timeshare
- The Act governs the offer and sale, before any use.
Remember: Offered in New Jersey means covered in New Jersey.
Question ID: bq-47-47
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreA court orders the Real Estate Guaranty Fund to pay on an uncollectible judgment against a salesperson who converted deposit money. Which person can NOT be paid from the fund under N.J.S.A. 45:15-37?
Reveal answer (review only)
Answer: The answer is D, The salesperson's spouse.
N.J.S.A. 45:15-37 says no court order may authorize payment from the fund to the spouse of the judgment debtor or the spouse's personal representative. Other claimants need a final judgment, a search for assets that came up short and a certification that a criminal complaint was filed.
Why the other answers do not fit
- A. A buyer whose deposit was converted
- A buyer who wins an uncollectible judgment for a converted deposit is the typical claimant.
- B. A seller who lost sale proceeds
- A seller can be a claimant on the same terms.
- C. A tenant whose security deposit was taken
- A tenant harmed in a rental transaction can be a claimant on the same terms.
Remember: The fund never pays the wrongdoer's spouse.
Question ID: bq-47-48
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scoreUnder the housing provisions of the NJ Law Against Discrimination (N.J.S.A. 10:5-12(g) and (h)), which characteristic is NOT on the protected list?
Reveal answer (review only)
Answer: The answer is C, Age.
The LAD's housing subsections protect race, creed, color, national origin, ancestry, marital, civil union and domestic partnership status, familial status, pregnancy or breastfeeding, sex, gender identity or expression, affectional or sexual orientation, liability for service in the Armed Forces, disability, nationality and source of lawful income. Age appears in other LAD sections, such as employment, but not in the housing list.
Why the other answers do not fit
- A. Pregnancy or breastfeeding
- Pregnancy or breastfeeding is on the housing list.
- B. Gender identity or expression
- Gender identity or expression is on the housing list.
- D. Domestic partnership status
- Domestic partnership status is on the housing list.
Remember: Age is protected in NJ employment, not NJ housing.
Question ID: bq-47-49
Revealing the answer makes this attempt review only.
Quick check
Saves to your topic scorePaula lives in her one-family home and rents out two spare bedrooms. Her mortgage is an FHA-insured loan. She turns down a renter because of his religion. Is she exempt from the NJ Law Against Discrimination?
Reveal answer (review only)
Answer: The answer is B, No. Housing financed with a federally insured loan is publicly assisted, so the exemption does not apply.
N.J.S.A. 10:5-5(n) exempts renting rooms in a one-family home the owner occupies, but not for publicly assisted housing, which under 10:5-5(m) includes housing financed in whole or part by a federally guaranteed or insured loan.
Why the other answers do not fit
- A. Yes. Renting rooms in an owner-occupied one-family home is always exempt
- The exemption has an exception for publicly assisted housing.
- C. Yes, because she rents fewer than four rooms
- The LAD has no four-room test; that sounds like the federal Fair Housing Act's four-unit rule.
- D. No, because the LAD has no exemptions for owners at all
- The LAD does have two narrow owner exemptions; Paula just falls outside them.
Remember: FHA, VA or other insured financing knocks out the LAD owner exemption.
Question ID: bq-47-50
Revealing the answer makes this attempt review only.
What your score means and what to review
PSI's bulletin gives one passing score for the whole 110-question exam and describes no separate cutoff for the state questions. The bands below are our suggestion for using this set, not a PSI or Commission standard. Because this set is weighted heavily toward the 22-item area, a weak score there matters most.
| Your score | What it suggests | What to do next |
|---|---|---|
| 45 to 50 | Strong performance on this practice set. | Take a timed full practice exam to test your national topics too, and keep the NJ-only rules sheet for your last review. |
| 40 to 44 | Review the rules behind the questions you missed. | Use the table below to review only the areas where you missed questions, then retry those questions in two or three days. |
| 35 to 39 | 35 is 70 percent of this set. It is not a separate PSI state passing score or a readiness prediction. | Work through the state portion study guide area by area before your exam date. |
| Under 35 | Revisit each state topic tested here. | Start with the state portion study guide, then the review links below, and retake this set in a week. |
| Questions | Topic | Review |
|---|---|---|
| 1 to 8 | Commission powers and licensing | Licensing and the Commission |
| 9 to 15 | Broker relationships, pay and offices | NJ Real Estate Commission rules on who can pay you |
| 16 to 21 | Trust money and records | Commingling vs conversion |
| 22 to 26 | Contracts, listings and attorney review | Attorney review and listings and offers |
| 27 to 30 | Agency under the 2024 law | Brokerage services agreements and designated vs dual agency |
| 31 to 39 | Advertising, rebates and disclosures | NJ advertising rules and NJ disclosures |
| 40 to 45 | Other state laws | NJ land use and the Realty Transfer Fee guide |
| 46 to 50 | Full Disclosure Act, LAD, Guaranty Fund, Timeshare Act | Guaranty Fund guide and NJ LAD vs the Fair Housing Act |
If you have already taken the exam and failed, PSI's emailed score report includes a diagnostic report of your strengths and weaknesses. Start with those, and see our retake plan for how to fit the review into your remaining time.
The full NJ question bank, in the app
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FAQ
Are these real PSI New Jersey exam questions?
No. We wrote all 50 from the New Jersey statutes and Commission rules they test. These are original practice questions, not actual PSI exam items or a prediction of the questions you will receive.
How many New Jersey state law questions are on the PSI salesperson exam?
Thirty of the 110 scored questions, per PSI's bulletin updated February 1, 2026. They are split 2 for the Commission's duties and powers, 3 for licensing requirements, 22 for statutes and rules governing licensee activities and 3 for additional requirements.
Is the New Jersey state portion scored separately?
PSI's bulletin gives one passing standard for the salesperson exam: 70 percent, or 77 of 110 scored questions. It does not describe a separate cutoff for the state questions, so treat both portions as one score and do not count on a strong national score to hide weak state rules.
What score on this practice set means I am ready?
No score on this set establishes that you are ready for the PSI exam. Use your first attempt without notes or revealed answers to find rules to review. Repeating the same questions can help you learn, but a higher repeat score may reflect memory. After reviewing your misses, try fresh, timed questions covering both national and New Jersey topics. The score bands above are study checkpoints, not validated pass predictions.
Which New Jersey topic has the most questions?
Statutes and rules governing licensee activities, with 22 of the 30 state questions. It covers advertising, broker and salesperson relationships, commissions, agency, contracts, trust funds, listings, offices, records, inducements, rebates, duties to the public and nine other state laws.
Do I need to memorize statute and rule numbers for the NJ exam?
No. The questions test what the rule says, not its citation. We give the cite in each explanation so you can look up the full rule when you miss one.
Do the January 2026 rule changes matter for the exam?
Study the current rules. The Commission's amendments took effect January 20, 2026, including the new ad line "In New Jersey, broker compensation is fully negotiable and not set by law." We could not find a PSI statement on when exam items are updated, so learn the rule as it stands now.
How should I use these questions with a full practice exam?
Use this set to find and fix weak New Jersey rules, then take a timed full practice exam to check both portions together. Our suggestion is to save the full exam for after you have reviewed your misses here.
Sources
- PSI, New Jersey Real Estate Candidate Information Bulletin (updated February 1, 2026)
- N.J.S.A. 45:15-17, grounds for discipline and penalties (2025 code via Justia)
- N.J.A.C. 11:5-6.2, contracts of sale, leases and listing agreements (Cornell LII)
- P.L. 2024, c.32 (N.J.S.A. 45:15-16.86 and following), effective August 1, 2024
- N.J.S.A. 10:5-12, Law Against Discrimination unlawful practices, housing subsections (g) and (h) (2025 code via Justia)
- N.J. Real Estate Commission, N.J.A.C. 11:5 adoption notice, R.2026 d.020, New Jersey Register January 20, 2026