Educational Resources: Take New Jersey Real Estate Sample Tests, Application Steps and Tips

After satisfying pre-licensing requirements, the next mandatory step is passing the two-part real estate license exam administered at PSI test centers statewide.

This crucial assessment covers general real estate knowledge along with New Jersey real estate statutes and practices. You have one year from completing pre-licensing education to take and pass the licensing exam.

The NJREC contracts with PSI Exams to deliver real estate exams.⁹ You must create an account on the PSI’s website to schedule your exam appointment online after finishing pre-licensing education.¹

The $45 testing fee is due when scheduling each exam attempt and is payable to PSI. You can take the exam on-site at any PSI testing center or remotely online through PSI’s remote proctoring system.

On the day of the exam, bring a printout of your eligibility email from PSI and a valid photo ID to your scheduled appointment. Arrive 30 minutes early to allow time to check in and settle.

Exam Format: Computer-based exam administered at approved PSI test centers

The NJ real estate exam consists of two parts:

• National Section (80 questions): Tests general real estate principles and practices.
• State Section (30 questions): Covers New Jersey real estate statutes and license laws.

Time: You have 240 minutes (4 hours) total to complete the full 110-question exam.

Passing Score: The minimum passing score is 70%.

To pass, you must achieve scores of at least 70% in each section:

• National: Correctly answer at least 56 of the 80 national questions
• State: Correctly answer at least 21 of the 30 state questions

First-time pass rates average around 60% to 70%.

Exam Content

Here are the topics covered in each section:

National Section:

• Property Ownership (Sales 10%)
• Land use Controls (Sales 5%)
• Valuation (Sales 8%)
• Financing (Sales 10%)
• Agency (Sales 13%)
• Property Disclosures (Sales 7%)
• Property Management (Sales 3%)
• Transfer of Title (Sales 6%)
• Practice of Real Estate (Sales 12%)
• Real Estate Calculations (Sales 7%)

Sample Question

Which of the following statements BEST identifies the meaning of the term, “rescission of a contract”?

1. A ratification of a contract by all parties
2. A return of all parties to their condition before the contract was executed
3. A transfer or assignment of a particular responsibility from one of the parties to another
4. A review of the contract by the legal counsel of either party that may result in

Lifted from: Real Estate Salesperson, Broker, and Instructor Examination Candidate Information Bulletin²

State Section:

• Duties and Powers of the Real Estate Commission (Salesperson: 2 items)
• Licensing Requirements (Salesperson: 3 items)
• Statutes and Rules Governing Licensee Activities (Salesperson: 22 items)
• Additional Requirements (Salesperson: 3 items)

Sample Question

You work for Broker A. Agent Bill, who also works for Broker A, asks you for help in closing a sale he is working on, and offers you 10 percent of his commission for the assistance.

After the settlement, who will pay your commission to you?

1. Bill, who promised you the commission
2. Broker A
3. The seller
4. The co-operating broker

Sales Associate Susan is working with a customer buyer. Susan and her buyer discussed agency representation at the first meaningful contact, however, the buyer decided not to commit to Susan yet and opted to work with Susan as a customer.

According to New Jersey’s Brokerage Relationships in Real Estate Transactions Act (BRRETA), Susan and her customer will need to sign a buyer agency agreement when:

1. Susan locates home inspectors for the buyer
2. Susan provides pre-printed real estate form contracts
3. Susan advises the buyer on an offer price and terms
4. Susan identifies properties for sale, lease, or exchange

Lifted from: New Jersey Real Estate Practice Exam³

After finishing the exam, your score will immediately be displayed on the screen and emailed to you. In case you fail any section, your emailed score report will include diagnostic information to help you study for the retake.

To retake the exam, you will have to reschedule and pay the $45 fee to PSI.

Scoring well requires mastering both general real estate concepts along with New Jersey real estate laws and regulations. Studying your pre-licensing materials along with supplemental exam prep tools helps ensure you pass on the first attempt.

Schedule your exam only when you consistently score 75% or higher on practice tests.

How To Complete Your New Jersey Department of Banking and Insurance Real Estate License Application in 5 Steps

After passing the exam and fulfilling all pre-licensing requirements, the next step is applying for your real estate salesperson license through the New Jersey Department of Banking and Insurance (NJREC) following the NREC online application instructions.⁴

You can submit your application either online or via paper forms. Here is an overview of the process:

To apply online:

1. Register Online

Go to the NJREC Online Licensing System to create an account. This allows you to access the Online Licensing Services portal.⁵

2. Provide Required Information

Answer all application questions thoroughly. Your sponsoring broker must approve your request to practice under their supervision.

3. Pay Licensing Fees

The application fee is $160 covering the license fee ($100), application fee ($50), and guarantee fund fee ($10). You can make the payment by credit card, money order, or cashier’s check made out to the State Treasurer of New Jersey.

4. Upload Supporting Documents

Attach all required paperwork including pre-licensing certificates, background check results, and broker forms.

5. Submit Your Application

The NJREC will review your application within 10 business days. You will receive a notification if approved or if anything is missing.

Once approved, you will receive an email confirmation and can generate your license certification as a PDF document and you can immediately begin practicing real estate under your sponsoring broker.

If applying by paper, download the New Jersey Application Form,⁵ mail your completed application, fees, and documents to the NJREC for processing. However, online submission is faster.

Mailing Address:

New Jersey Department of Real Estate
PO Box 328
Trenton, NJ 08625-0328

NJREC only accepts complete applications with all documentation. Required paperwork includes:

• Signed PSI exam passing score report
• Completed fingerprinting Universal Form and receipt
• $160 application payment
• Broker sponsorship authorization

Work with your sponsoring broker to compile and submit all required application components accurately. Applications with partial or missing documents will get returned unprocessed.

The broker must verify your requested employment start date is after passing the licensing exam and before your eligibility expiration. Once approved, both you and the sponsoring broker will receive email confirmation.

Application Review Process

Expect NJRED to take 10 business days to review and approve license applications after submission. You will get notified by email once processed.

Contact the NJREC at (609) 292-7272 or [email protected] if you have any questions about your application status during the review period.

Financial Requirements For Joining the New Jersey Department of Banking and Insurance Association of Real Estate Agents

Here are the typical fees associated with obtaining an active real estate license in New Jersey:

• Pre-licensing course tuition: $200-$500
• NJSP fingerprint background check: $60.05
• Exam registration fee: $45
• License application fee for 2 years: $160
• License renewal fee every 2 years: $200
• Continuing education: Varies, 12 hours required every 2 years
• Optional association membership dues

All licensing fees are non-refundable according to Commission rules. You can make payments by credit card, money order or cashier’s check made out to the New Jersey Real Estate Commission.

Keep detailed records of payments made.

Exercising Your Right To Apply for National Association of Realtors® (NAR) Membership

New Jersey real estate license holders also have the option to join the National Association of REALTORS® (NAR) for access to resources and networking opportunities.⁶

Membership in the National Association of REALTORS® (NAR) offers many advantages, including;

• Access to MLS property listings
• Permission to use the esteemed Realtor® trademark
• Discounts on various services, technology, and errors and omissions (E&O) insurance
• Continuing education programs
• The ability to contribute to real estate laws and policies

To become a member of NAR, real estate agents need to apply through their REALTOR® association, which then forwards the application to NAR. NAR membership requires payment of dues that vary based on state and member type.⁷

In New Jersey, residential real estate agents typically pay around $185 per year. You can find the application on the New Jersey REALTORS® website.⁸

The membership application process involves;

• Holding an active real estate license in New Jersey
• Finding a local realtor® association like the North Central Jersey Association of Realtors®⁹
• Meeting NAR’s membership criteria
• Completing member training and orientation including NAR Ethics training
• Paying state and national dues; an initial application fee of $150, in 2023 (rising to $156 in 2024) plus annual NAR dues amounting to $185

Although it is not mandatory, being a member of NAR can provide resources, networking opportunities, training, and business growth. Consult current members to gauge the value of membership for your specific needs.

What’s the Usual Time Required for the Real Estate Application Process?

For aspiring real estate agents in NJ, the process from starting from pre-licensing to obtaining a license typically takes around 4 to 6 months. However, with preparation, it is possible to complete it in as little as 2 to 3 months.

Here’s an outline of the timeframe;

• Completing 75 hours of pre-licensing education usually takes about 2 to 8 weeks
• Scheduling and passing the licensing exam generally requires 2 to 4 weeks
• The processing time for fingerprint criminal background checks usually ranges from 3 to 6 weeks
• Finalizing brokerage sponsorship, insurance and application typically takes around 1 to 2 weeks
•  The NJRECs approval of a license application generally takes 1 to 2 weeks

If you work diligently and efficiently, you could obtain your New Jersey license in less than two months. However, it’s important not to rush through the process at the expense of understanding the education material.

Passing the state exam on your first attempt is crucial. By being proactive and taking care of each step promptly and thoughtfully, you can avoid any potential delays.