Statutes and Rules Governing Licensee Activities
Thirty of the forty New Jersey items — three quarters of the state portion — sit in this single area. The bulletin prints thirteen subtopics under it, and the last of those names nine separate New Jersey statutes. This is where the New Jersey exam is won or lost.
Advertising
N.J.A.C. 11:5-6.1 governs everything from billboards to email. An advertisement must carry the broker's regular business name, and where it also names a salesperson or broker-salesperson, the broker's name must appear "in a more prominent manner" than the individual's. An advertisement that mentions being licensed by the Commission must immediately add "Licensure does not imply endorsement." The 2026 readoption added subsection (q): an advertisement referring to a commission rate or compensation amount must state, clearly and conspicuously, "In New Jersey, broker compensation is fully negotiable and not set by law." A property under a fully executed contract that has emerged from attorney review must be advertised as "under contract." Advertisements must not be false, misleading or deceptive.
Broker and salesperson: the written agreement, and the money
N.J.A.C. 11:5-4.1 requires a written business relationship agreement before the salesperson engages in any brokerage activity. It must state the compensation rate, the rate payable on transactions closing after the affiliation ends, a provision paying the salesperson their share within 10 business days of the broker's receipt once funds clear (or on a schedule the agreement sets out), and a clause that later changes bind no one unless signed by both. Compensation paid to the broker goes into the general business account within five business days of receipt unless debited from escrow. Within 30 days of a salesperson's departure the broker owes a written accounting of monies due and monies that may become due. The broker keeps these documents, and proof of their delivery, for six years.
Agency: two layers that disagree on purpose
P.L. 2024, c.32, effective 1 August 2024, is the largest change to New Jersey agency law in decades. It defines buyer's agent, seller's agent, disclosed dual agent, designated agent and transaction broker in statute, and provides that the seller's and buyer's designated agents "are not dual agents and owe fiduciary duties solely to their respective principals" — though the firm itself, apart from those two licensees, acts as a disclosed dual agent. It requires a written brokerage services agreement in residential transactions, entered into "before, or as soon as reasonably practical after, the firm commences rendering real estate brokerage services" — not before showing. Consent to dual or designated agency must be given by separate initialization or signature. The agreement must disclose that broker compensation is fully negotiable and not set by law, and must contain an "Agency Disclosure" paragraph. Meanwhile N.J.A.C. 11:5-6.9 was left alone: it still describes four relationships and the older verbal-then-written scheme, and in adopting the 2026 readoption the Commission said in terms that "the balance of the changes to the law made at P.L. 2024, c. 32 are not addressed in this rulemaking." The practical resolution is DOBI Bulletin 24-11, which issued a revised Consumer Information Statement that licensees must use in lieu of the text at N.J.A.C. 11:5-6.9(h).
The Consumer Information Statement, and the open-house sign
Under c.32 the statement must be included as part of the brokerage services agreement, with a signed acknowledgment of receipt. It goes to a party the firm serves as soon as reasonably practical but no later than when that party signs a brokerage services agreement, and to a party not represented by any firm before that party signs an offer or as soon as reasonably practical afterwards. A signed acknowledgment is not a precondition to viewing a property at an open house. At any residential showing generally open to the public, a sign at the entrance or sign-in sheet must carry the statutory text advising that the hosting agent represents the seller, is required by law to promote the seller's interests, and that information the visitor gives is not confidential.
Trust funds, records and the place of business
Deposits belong to the parties and are held in a trust or special account separate from the broker's own funds and the firm's operating money; a salesperson who receives a deposit is a conduit and delivers it promptly to the broker. N.J.A.C. 11:5-5.2 requires a licensee to satisfy themselves that adequate precautions safeguard a purchaser's funds before accepting them. Transaction files are kept at the employing broker's offices and a departing licensee "shall not remove, or cause to be removed, the contents of such files." A branch office may not be licensed in a salesperson's or broker-salesperson's dwelling, must be under the direct supervision of a licensed broker employed as a broker-salesperson who manages it full time, and a change of that supervisor must be reported to the Commission within 48 hours.
Inducements, referrals and cooperation
N.J.A.C. 11:5-7.2 treats accepting a thing of value for a referral to a lender or other service provider as conduct demonstrating unworthiness, bad faith and dishonesty. A broker with an in-house mortgage service may compensate a licensee who performs actual mortgage services, but may not offer bonuses or extra consideration for merely referring buyers, may not pay a higher commission rate because the mortgage was placed in-house, and may not award prizes based on referral counts. N.J.A.C. 11:5-6.8 requires written disclosure of an affiliation with a mortgage lender even where the licensee earns nothing from the referral. N.J.A.C. 11:5-6.6 forbids participating in a trade association or multiple listing service whose policies interfere with the licensee's fidelity to the client, fair dealing with all parties, or the obligation to fully cooperate with any other New Jersey licensee.
Other laws a New Jersey broker is expected to know
The bulletin's thirteenth subtopic names nine bodies of law by title: the Farmland Reassessment Act, the Pinelands Protection Act of 1979, the Realty Transfer Fee, Mount Laurel requirements, zoning and building codes, the Municipal Land Use Law, real estate transfer tax, the Truth in Renting Act, and the Freshwater Wetlands Protection Act of 1987. They are not license-law rules; they are the New Jersey statutes that decide what a client may build, what a client will pay at closing, and what a landlord must hand a tenant. A broker is expected to recognize which one governs a given question and to refer the client onward rather than advise.
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State-specific details
State exam facts
- State regulator
- New Jersey Real Estate Commission (NJREC)
- Exam vendor
- PSI
- Prelicensing education
- 150 hours of broker prelicensure education (a 90-hour general course first, then two 30-hour courses)
- Passing score
- 70% (PSI bulletin 1663: “70% (84 correct)”)
- Scored questions
- 115
- Time limit
- 240 minutes
Who regulates real estate brokers in New Jersey?
The New Jersey Real Estate Commission (NJREC), within the Department of Banking and Insurance, licenses brokers, broker-salespersons and salespersons. NJREC contracts with PSI to deliver the licensing exams.
What experience do I need before the New Jersey broker exam?
Broker candidates must have worked three years on a full-time basis as a salesperson and completed the 150 hours of broker prelicensure education. The order matters: the 90-hour general course must be completed first, then the two 30-hour courses, and only then may the experience approval application go to NJREC with its $25 fee. PSI will not seat a broker candidate until the Commission has approved that experience.
How is the New Jersey broker exam structured?
It is one integrated 115-question computer-based exam in a single 4-hour session, covering the national/general body of knowledge and New Jersey law together, plus 5 to 10 unscored experimental items. The pass mark is 70%, which PSI's bulletin states as 84 correct; the 115 questions are worth 120 points because some national broker items score up to two points.
Is there a separate New Jersey state score I have to pass?
No. New Jersey uses one integrated exam with a single pass mark, so unlike states that score the national and state halves separately, there is no state-only cut score to clear. In practice a candidate can do poorly on New Jersey law and still pass on national strength — which is exactly why the 40 New Jersey items are worth studying rather than gambling on.
Sources: https://www.nj.gov/dobi/division_rec/index.htm, https://test-takers.psiexams.com/api/content/bulletin/1663
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