Real Estate Practice in New Jersey
New Jersey practice features a distinctive attorney-review period on licensee-prepared contracts and strict escrow rules. This chapter covers attorney review, escrow handling, and property disclosure.
Attorney Review
When a licensee prepares a standard-form contract for a one-to-four family residence, the contract must include an attorney-review clause. Either party may have an attorney review and disapprove the contract within three business days; a timely disapproval voids the contract. This safeguard exists because licensees, not attorneys, complete the initial form, so consumers retain a short window for legal review.
Escrow and Trust Money
Deposit and escrow money must be handled through the broker's trust account. A salesperson who receives funds must deliver them promptly to the broker, and the broker must keep trust money separate from operating and personal accounts. Commingling or converting escrow funds is a serious violation of New Jersey license law.
Property Disclosure and Honest Dealing
New Jersey sellers commonly complete a property condition disclosure statement, and licensees must not help conceal known material defects. Case law also requires disclosure of known off-site conditions in some circumstances. Accurate, honest disclosure protects consumers and reduces the licensee's exposure to misrepresentation claims.
State-specific details
State exam facts
- State regulator
- New Jersey Real Estate Commission (NJREC)
- Exam vendor
- PSI
- Prelicensing education
- 75 hours of approved salesperson pre-license education
How many prelicensing hours does New Jersey require to become a real estate agent?
New Jersey requires 75 hours of approved salesperson pre-license education before you can take the state exam.
Who licenses real estate agents in New Jersey?
The New Jersey Real Estate Commission (NJREC), within the Department of Banking and Insurance, licenses salespersons and brokers. NJREC uses PSI to deliver the exam.
How is the New Jersey salesperson exam structured?
The New Jersey salesperson exam is delivered by PSI and covers both national real estate principles and New Jersey license law. Confirm the current scored-question counts and passing score in the PSI Candidate Information Bulletin.
Sources: https://www.nj.gov/dobi/division_rec/licensing/reclicgen.htm, https://www.psiexams.com/
Practice stays free. The full New Jersey Real Estate Salesperson Exam study guide is the material itself, taught start to finish — a downloadable PDF + EPUB you keep.