New Jersey Real Estate Study Guide 2026 — Free Cheat Sheet

A 'Broker of record' is the individual broker who is licensed as, and acts in the capacity of, the broker authorized to transact business on behalf of a licensed business entity. An 'Employing broker' is the real estate broker by, through, or with whom a broker-salesperson, salesperson, or salesperson (referral) is licensed. Candidates must distinguish these two roles.

• ✓'Broker of record' is the individual broker authorized to transact business on behalf of a licensed business entity
• ✓'Employing broker' is the broker by, through, or with whom a broker-salesperson, salesperson, or salesperson (referral) is licensed

The New Jersey Real Estate Commission regulates the education, examination, and licensing of brokers, broker-salespersons, and salespersons. It also regulates the sale or lease of out-of-State properties to New Jersey residents through in-State promotional activities, investigates and adjudicates disciplinary actions against licensees, and administers the Real Estate Guaranty Fund.

• ✓The Commission regulates education, examination, and licensing of brokers, broker-salespersons, and salespersons
• ✓The Commission regulates in-State promotional activities for the sale/lease of out-of-State properties to NJ residents
• ✓The Commission investigates/adjudicates disciplinary actions and administers the Real Estate Guaranty Fund

Chapter 11:5 defines core terms candidates must know. The 'Act' is the Real Estate License Act, N.J.S.A. 45:15-1 et seq. The 'Commission' is the New Jersey Real Estate Commission. These definitions govern the entire chapter unless context clearly indicates otherwise.

• ✓'Act' means the Real Estate License Act, N.J.S.A. 45:15-1 et seq.
• ✓'Commission' means the New Jersey Real Estate Commission
• ✓Definitions apply throughout the chapter unless context clearly indicates otherwise

Effective January 20, 2026 (R.2026 d.020), the former term 'referral agent' was renamed 'real estate salesperson licensed with a real estate referral company,' abbreviated 'salesperson (referral).' This licensee category, the 'real estate referral company,' and related broker/salesperson terms all take their meaning from N.J.S.A. 45:15-3.

• ✓'Salesperson (referral)' means a real estate salesperson licensed with a real estate referral company
• ✓The definition and other license-type definitions derive from N.J.S.A. 45:15-3
• ✓Effective 2026-01-20, 'referral agent' was renamed 'salesperson licensed with a real estate referral company'

'Real estate brokerage activity' (or 'brokerage activity') means any of the activities described in N.J.S.A. 45:15-3 for which a real estate license is required. This ties the licensing requirement directly to the statutory list of licensed activities.

• ✓'Brokerage activity' means any activity in N.J.S.A. 45:15-3 for which a real estate license is required
• ✓A real estate license is required to perform brokerage activity

Every applicant for a salesperson's, salesperson (referral)'s, or broker's license must present evidence of satisfactory completion of an approved real estate education course with their license application, taught in accordance with N.J.S.A. 45:15-10.1. Salesperson and broker courses are not interchangeable for credit.

• ✓All applicants for salesperson, salesperson (referral), or broker licenses must submit evidence of completed real estate education with their application
• ✓No credit toward the salesperson/salesperson (referral) requirement is given for attending a broker's course, and no credit toward the broker requirement is given for attending a salesperson's course
• ✓Courses must be taught in accordance with N.J.S.A. 45:15-10.1

To qualify to sit for the salesperson or salesperson (referral) exam, a candidate must first complete a minimum 75-hour course at a Commission-licensed school. To qualify for the broker exam, a candidate must complete a minimum 150 hours (a 90-hour general course plus two 30-hour courses).

• ✓Salesperson/salesperson (referral) exam candidates must complete a minimum 75-hour course at a school licensed under N.J.S.A. 45:15-10.4
• ✓Broker exam candidates must complete a minimum of 150 hours of prelicensure education
• ✓Broker courses must be taken at a licensed school, except certain courses in (g)5 which may be offered by a Commission-approved provider

Broker prelicensure education is 150 hours: a 90-hour general broker's course completed first, followed by two 30-hour courses (ethics/agency and office management). All three courses must be completed within two years or the candidate must retake and re-satisfy the experience requirement.

• ✓The 150 hours consists of a 90-hour general course plus two 30-hour courses (ethics/agency and office management)
• ✓The 90-hour general course must be completed before the two 30-hour courses
• ✓All three courses (150 hours) must be completed within a two-year period
• ✓If not completed in two years, the candidate must retake previously taken courses and again fulfill the experience requirement under N.J.S.A. 45:15-9 and N.J.A.C. 11:5-3.8

With the exception of qualified disabled veterans, a person must be a licensed salesperson at the time of enrollment to receive credit for the 150 hours of broker's prelicensure courses.

• ✓A person must hold a salesperson's license at the time of enrollment in a broker's course to receive credit for completing the required 150 hours
• ✓Qualified disabled veterans are the only exception to this salesperson-license-at-enrollment requirement

The general 90-hour broker and 75-hour salesperson prelicensure course requirements are waived for specified applicants, including out-of-state brokers with 3+ years of active brokerage experience, attorneys, degree holders with sufficient real estate coursework, out-of-state licensees meeting equivalency conditions, and former NJ brokers whose license expired more than two but less than five years ago.

• ✓Out-of-state brokers actively engaged in brokerage 3+ years immediately preceding application are exempt
• ✓Attorneys at law admitted in NJ (broker or salesperson applicants) or admitted in any state (salesperson applicants) are exempt
• ✓College degree holders qualify if 75+ college-level real estate hours were completed within 3 years, or they hold a bachelor/associate degree in real estate, or completed 75+ hours (45+ post-graduate) within 3 years
• ✓Out-of-state salesperson applicants qualify if they completed a state-sanctioned 75+ hour course, qualified by examination, and were actively licensed within 3 years
• ✓Former NJ brokers whose license expired more than two but less than five years prior are exempt for salesperson/referral licensure

The salesperson (and salesperson referral) prelicensure course consists of 75 hours covering enumerated subjects, from property rights and contracts through agency law, the License Act, and a final examination.

• ✓The course totals 75 hours: Property rights (9), Contracts/instruments (12), Leases and landlord-tenant (6), Mortgages/liens (12), Business opportunity sales (2)
• ✓Additional subjects: Laws of agency (12), Appraising (2), License Act and regulations (9), Other state/Federal/municipal laws (5)
• ✓Concludes with Salesperson duties and pitfalls (3) and Quizzes and final examination (3)

The 90-hour general broker course may be taught in up to 23 modules matching 23 subject areas. Students may not start on a date other than a module's starting date, and credit requires instruction in all subject areas plus passing a comprehensive final exam.

• ✓The course may be divided into a maximum of 23 modules corresponding to 23 subject matter areas
• ✓Students may not commence a modular course on a date other than a module's starting date
• ✓No credit is given unless the student receives instruction in all subject areas and passes a comprehensive final examination
• ✓Subject areas include agency principles (6 hrs), settlement/RESPA (6 hrs), fair housing/discrimination laws (3 hrs), and financing (6 hrs), among others

After the 90-hour course, broker candidates must complete a 30-hour ethics/agency course and a 30-hour office management course, both taught by licensed instructors at licensed schools, each requiring a final exam of at least one hour.

• ✓Both 30-hour courses must be taught by licensed instructors at licensed schools
• ✓The ethics/agency course must use case studies of recent Commission disciplinary decisions and non-lecture techniques
• ✓A final exam of not less than one hour requiring a passing grade must be given in each course
• ✓Students may not commence either 30-hour course on a date other than its starting date

The broker ethics/agency course covers fiduciary duties, dual agency, conflicts of interest, sub-agency, disclosure requirements, and the obligation to qualify prospective purchasers.

• ✓Covers fiduciary duties owed by agents to principals, and disclosed and undisclosed dual agency
• ✓Covers conflicts of interest and self-dealing, and the risks and benefits of sub-agency
• ✓Covers disclosure requirements to non-principals, restrictions on acting for more than one party (including mortgage services), and the obligation to properly qualify/pre-qualify prospective purchasers

The broker office management course covers supervising broker requirements for main and branch offices, recordkeeping with emphasis on escrow account records, supervision and training of licensees, qualification techniques, contract/lease/listing and advertising requirements, closings, and environmental concerns.

• ✓Covers office management requirements imposed on supervising brokers of main and branch offices
• ✓Places particular emphasis and extensive coverage on escrow account recordkeeping requirements
• ✓Covers the importance of adequate supervision and training of other licensees to assure compliance with the license law and Commission rules
• ✓Covers statutory/rule requirements for contracts, leases, listing agreements, broker advertising, and closings

The Education Bureau of the Real Estate Commission issues Certificates of Examination Eligibility, which authorize candidates to sit for licensing examinations. A candidate must either fulfill the applicable experience and/or education requirements, or have those requirements waived, before a Certificate is issued. This applies to broker, instructor, and salesperson (including salesperson licensed with a real estate referral company) candidates.

• ✓Broker license candidates must have fulfilled or had waived (per N.J.A.C. 11:5-3.8 and 2.1(e)) the broker experience and/or education requirements to receive a Certificate of Examination Eligibility
• ✓Instructor license candidates must have fulfilled or had waived (per N.J.A.C. 11:5-2.2(k)) the instructor education requirement
• ✓Salesperson and salesperson-with-referral-company candidates must have had the education requirement waived under N.J.A.C. 11:5-2.1(e) to receive a Certificate
• ✓The Education Bureau is the office responsible for issuing all Certificates of Examination Eligibility

The Education Bureau processes applications for waivers of prelicensure education and broker experience requirements, and continuing education waivers. Waivers include salesperson/referral-company prelicensure education waivers, partial broker prelicensure education and/or complete broker experience waivers, disabled veteran waivers under N.J.S.A. 45:15-11, and continuing education waivers under N.J.A.C. 11:5-12.5. Processing time frames begin only after receipt of complete and accurate applications with the correct fees.

• ✓Qualifying disabled veterans may obtain a waiver of the broker experience and certain prelicensure education requirements pursuant to N.J.S.A. 45:15-11
• ✓Waivers of prelicensure education and/or broker experience requirements not requiring additional review are generally processed within four weeks
• ✓Applications to approve salesperson experience toward the broker experience requirement (N.J.S.A. 45:15-9; N.J.A.C. 11:5-3.8) are processed within four weeks
• ✓Continuing education requirement waivers are processed within three weeks after receipt of a complete waiver application
• ✓Instructor, school, and additional teaching location license applications are processed within three weeks; renewals within four weeks
• ✓Processing times run only after the Commission receives complete, accurate applications with required fees in the correct form

N.J.A.C. 11:5-2.6 sets the fees for Education Bureau transactions unrelated to continuing education (CE provider, instructor, and course approval fees appear separately in N.J.A.C. 11:5-12.17). Fees for school and instructor licenses vary, and license fees are prorated based on whether issued in the first or second year of the two-year license term.

• ✓Application fee for a school license is $100.00; application fee for an instructor license is $50.00
• ✓Initial non-public school license fee is $400.00 if issued in the first year of the two-year term, $200.00 if issued in the second year
• ✓Non-public school renewal fee is $400.00 plus $200.00 for each additional licensed location
• ✓Additional teaching location license fee is $200.00 (first year) or $100.00 (second year) of the two-year term
• ✓Criminal history check and electronic fingerprint scan are charged at the state-contracted vendor fee, paid directly to the vendor
• ✓CE provider, instructor, and course approval fees are governed by N.J.A.C. 11:5-12.17, not by the 11:5-2.6 fee table

Broker, broker-salesperson, salesperson, and branch office licenses run for a two-year (biennial) period concluding on June 30 of the odd-numbered year. Licenses issued during a biennial term run from the date of issuance to the end of that term, regardless of when in the term they are issued.

• ✓All real estate licenses run for a two-year term ending June 30 of the odd-numbered year
• ✓Licenses issued mid-term run from date of issuance to the end of the current biennial term
• ✓The definition of 'salesperson' includes a salesperson (referral)

A salesperson or salesperson (referral) applicant must pass the State exam and apply for issuance of the license no later than one year after successful completion of the prescribed prelicensure course. Failure to apply within one year requires retaking and completing both the course and the exam. The same one-year rule applies to broker/broker-salesperson applicants (from completion of the 150-hour education).

• ✓A salesperson applicant must apply for the license within one year of completing the prelicensure course
• ✓Failure to apply within one year requires retaking the course and the exam
• ✓Broker/broker-salesperson applicants must apply within one year of completing the 150-hour education requirement

Licensure as a broker requires demonstrating commitment to real estate brokerage as a primary, full-time vocation. Except for brokers licensed in other states, applicants must have been continuously licensed and employed full-time as a salesperson during the three years immediately preceding application (at least 40 hours/week, approximately 10 A.M.–8 P.M., five days per week; any other job limited to part-time not exceeding 25 hours/week). Brokers actively licensed in another state for at least three years may qualify for a waiver.

• ✓Applicants must have been continuously licensed and full-time employed as a salesperson for the three years preceding application
• ✓Full-time means at least 40 hours/week, five days/week; other employment limited to 25 hours/week
• ✓Out-of-state brokers actively licensed and engaged for three years may qualify for a waiver of the experience requirement
• ✓Activity limited solely to making referrals does NOT satisfy the full-time active-involvement requirement

Broker-salespersons must meet the same qualifications as brokers but must be employed by and act under the supervision of a duly licensed broker. A broker-salesperson may NOT independently maintain an office or an escrow account. A broker-salesperson may be authorized to serve as an office supervisor or a branch office supervisor under N.J.S.A. 45:15-12.

• ✓Broker-salespersons must meet the same qualifications as brokers
• ✓A broker-salesperson must work under a licensed broker's supervision and may not independently maintain an office or escrow account
• ✓A broker-salesperson may serve as an office or branch office supervisor if authorized

A sole proprietor broker or broker of record ceasing business cannot be relicensed unless, within 30 days, they submit an affidavit certifying: all licenses returned; trust account closed and trust funds disbursed to proper parties; all commissions paid or to be paid on receipt; remaining future commissions listed; all principals in ongoing transactions notified in writing; signs and advertisements removed/recalled; telephone directories updated; no outstanding fines; and acknowledgment of the duty to maintain records for six years.

• ✓An office-closing affidavit must be submitted within 30 days of ceasing business
• ✓The affidavit must certify the trust account is closed and all trust funds disbursed to proper parties
• ✓The affidavit must certify no outstanding fines and acknowledge the six-year record retention duty
• ✓The broker must provide the address of the record depository and notify the Commission of any changes for six years

Licensees must have a copy of their license in their possession at all times when engaged in the business of real estate. This may be a physical copy or a digital copy on a phone, tablet, laptop, or other electronic device. Copies may be printed or downloaded from the Commission's online licensing system at www.reconline.nj.gov.

• ✓Licensees must possess a copy of their license (physical or digital) whenever engaged in real estate business
• ✓A digital copy on an electronic device satisfies the possession requirement

With limited exceptions (fingerprint scanning vendor, license examination vendor, and online transfer/termination fees under 11:5-3.11), all fees prescribed by the Real Estate License Act must be paid by broker's business account check, certified or bank check, or money order payable to the State Treasurer of New Jersey. No cash or currency is accepted.

• ✓Fees must be paid by broker's business account check, certified/bank check, or money order payable to the State Treasurer of NJ
• ✓No cash or currency is accepted
• ✓Fingerprint vendor, exam vendor, and online transfer/termination fees are exceptions

The Commission requires an individual licensee, or any officer, director, partner, or owner of a controlling interest of a licensed corporation or partnership, to complete an electronic fingerprint scan through the State-contracted vendor, pay the processing fees, and submit proof of completion with the licensing application. Evidence includes the applicant's copy of the completed vendor form plus the payment receipt.

• ✓Individual licensees and controlling officers/directors/partners/owners must complete an electronic fingerprint scan through the State-contracted vendor
• ✓Proof of completion (vendor form plus payment receipt) must accompany the license application
• ✓Corporation/partnership applicants must submit fingerprint evidence for each officer, director, partner, or controlling owner

During licensing examinations, examinees may not refer to notes, books, or memoranda; copying questions or making notes for personal use is prohibited; and no examinee may leave the examining room except at the examiner's discretion. Exams are multiple-choice, prepared by a Commission-designated testing service. Exam and fingerprinting fees are service fees paid directly to the vendors, separate from Commission fees.

• ✓Examinees may not use notes/books/memoranda, copy questions, or make personal-use notes
• ✓No examinee may leave the exam room except at the examiner's discretion
• ✓License exams are multiple-choice, prepared by a testing service designated by the Commission
• ✓Exam and fingerprint fees are paid directly to the vendors, separate from the Commission application fee

No salesperson or salesperson (referral) license is issued to anyone under 18. Applicants must present a certificate of satisfactory completion of a Commission-licensed prelicensure course (unless waived), and must certify possession of a high school education or equivalency.

• ✓Salesperson/salesperson (referral) applicants must be at least 18 years old
• ✓Applicants must complete a Commission-licensed prelicensure education course unless waived
• ✓Applicants must certify a high school education or equivalency

No broker may knowingly sponsor an applicant for salesperson or salesperson (referral) licensure who does not bear a good reputation for honesty and fair dealing. For salesperson (referral) applicants, the application must include a broker certification (and, for non-renewals, an applicant certification) confirming that both reviewed the legal restrictions on referral activities and that the referral agent's activities are limited to referring prospective consumers only.

• ✓A broker may not knowingly sponsor an applicant lacking a good reputation for honesty and fair dealing
• ✓Salesperson (referral) applications require a broker certification confirming review of referral-activity restrictions
• ✓Salesperson (referral) activities are limited to referring prospective consumers of real estate brokerage services

Before applying for approval of experience, an applicant must have completed the 90-hour general broker prelicensure course plus two 30-hour courses (150 hours total). Applicants must submit written broker statements certifying their salesperson activity, and may be required to provide closed-transaction documentation as evidence of full-time activity.

• ✓Broker applicants must complete the 90-hour general broker course plus two 30-hour courses (150 total hours)
• ✓Written statements from supervising brokers certifying salesperson activity must be submitted
• ✓Supporting documentation of closed transactions may be required as proof of full-time activity

A broker who ceases to be active must, within five business days, return to the Commission their own license and the licenses of all salespersons, broker-salespersons, and salespersons (referral) for cancellation. Each employee's license must be accompanied by a letter terminating employment per N.J.S.A. 45:15-14.

• ✓A broker ceasing activity must return all licenses (own and employees') to the Commission within five business days
• ✓Each employee license must be accompanied by an employment-termination letter

When a new broker of record is substituted, the new and former brokers must submit a joint affidavit certifying: the new broker has assumed custody of all trust funds; all trust funds are accounted for; all commissions are paid to date; the new broker will pay commissions per existing policy; no fines are owed (with joint-and-several liability for pre-substitution fines); signs/advertisements changed; and all required records turned over with a six-year retention acknowledgment.

• ✓Broker-of-record substitution requires a joint affidavit from both the new and former broker
• ✓The new broker must assume custody of all trust funds and confirm all funds are accounted for
• ✓Both brokers are jointly and severally liable for fines assessed for pre-substitution actions
• ✓Required records must be turned over and maintained by the new broker for six years

When a licensee transfers between brokers and asks to hand-carry their license, the terminating broker must sign/date the rear, complete the termination confirmation section, and within five business days either mail it to the Commission or process the termination online, sending a copy to the licensee. The new employing broker enters the effective employment date, signs, detaches the temporary stub, and either mails the license with the transfer fee or processes online and pays electronically.

• ✓The terminating broker must complete and sign the termination confirmation section and act within five business days
• ✓The transferring licensee may hand-carry the license to the new broker only after it is signed and dated by the terminating broker
• ✓The new broker must enter the effective employment date and pay the required transfer fee before the licensee begins work
• ✓Only salesperson (referral), salesperson, or broker-salesperson licenses can be transferred/terminated online

Before a salesperson or salesperson (referral) engages in any real estate brokerage activity, the broker and the licensee must sign a written agreement setting out the terms of their business relationship. The agreement must contain specific mandatory terms and a copy of the fully executed agreement must be given to the licensee at the start of the affiliation, while the broker keeps the original as a business record.

• ✓A signed written agreement is required BEFORE the licensee engages in any brokerage activity
• ✓Agreement must state the rate of compensation payable during affiliation
• ✓Agreement must include a promise to pay the licensee's portion of earned commissions within 10 business days of receipt (or after funds clear the broker's bank), or per another schedule stated in the agreement
• ✓Agreement must specify compensation on transactions that close and renewals occurring after termination of the affiliation
• ✓Future changes are not binding unless in a writing signed by both parties
• ✓A copy must be provided to the licensee at commencement of affiliation; the original is kept by the broker under N.J.A.C. 11:5-5.5

The individual broker (sole proprietor employing broker or broker of record) is responsible for all actions of the broker licensee and its licensees taken in pursuit of the brokerage business, and for ultimate supervision of every transaction and control over escrow funds.

• ✓The Commission holds individual brokers responsible for any license-law/regulation violations by the broker licensee or persons employed/licensed through it, regardless of where the actions occur
• ✓Every real estate transaction the broker licensee participates in must be under the ultimate supervision of the individual broker
• ✓The individual broker must ensure a separate account is maintained for funds of others and that no such funds are disbursed without his/her express authorization and knowledge
• ✓These broker-supervision provisions do not apply to brokers licensed as broker-salespersons

No licensee may lend his name or license for another's benefit or circumvent licensing rules. A broker who fails to personally oversee the business is deemed to be lending the license.

• ✓No arrangement, direct or indirect, may lend a licensee's name/license for another's benefit or circumvent licensing law
• ✓A broker must personally oversee and direct the business and be physically present in the main or branch office at least one day each week (excluding vacations/emergencies)
• ✓Relying on telephone/mail communication alone for an extended period may be treated as evidence of prohibited license lending

Every resident broker (not a broker-salesperson) must maintain a main office in New Jersey open to the public during business hours, under full-time direct supervision by the broker or a broker-salesperson.

• ✓A resident broker must maintain a NJ main office open to the public during usual business hours under direct full-time supervision by the broker or a broker-salesperson
• ✓The supervisor need not be present continuously but must be reachable at all times and must be physically present at least 5 days per calendar week (excluding vacations/emergencies) and not otherwise employed during that time
• ✓If a broker-salesperson supervises the main office, the broker remains ultimately responsible for all activities and must be reachable at all times
• ✓A home office must be independent of living quarters with a separate exterior street-facing entrance (exempt if in existence before Dec. 1, 1963)
• ✓A broker's place of business may not be in the dwelling of any salesperson or salesperson (referral) in that broker's employ

Every resident NJ real estate broker must establish and maintain a special account (or accounts) in an authorized NJ financial institution, separate from other business or personal accounts, for all money of others received while acting as broker, escrow agent, or temporary custodian in a real estate transaction. A reciprocally licensed broker may maintain the account in NJ or in the state where they hold a resident broker's license.

• ✓Resident brokers must use an authorized financial institution in New Jersey
• ✓The trust/special account must be separate and apart from personal or other business accounts
• ✓Covers all money received acting as broker, escrow agent, or temporary custodian in a real estate transaction
• ✓Reciprocal brokers may use NJ or their resident-license state institution

Commingling includes: mingling principals' money with the broker's own; failing to maintain and promptly deposit all money received (as broker, escrow agent, or temporary custodian) in a separate special account; or failing to promptly segregate money received to be held for others. 'Promptly' means not more than five business days following receipt.

• ✓Mingling a principal's money with the broker's own money is commingling
• ✓Failure to promptly deposit funds in a separate special account is commingling
• ✓Failure to promptly segregate funds held for others is commingling
• ✓'Promptly' = not more than five business days after receipt

Money of another must generally be deposited within five business days of receipt. Exception: if good faith/earnest money accompanies an offer and, during that five-day window, the offer is withdrawn before acceptance or rejected with no counteroffer, the licensee need not deposit the funds and may return them (in original form) to the offerer upon request. In all other cases (ongoing negotiations, attorney review, or offerer requesting the licensee hold funds for a possible future offer), the funds must be deposited within five business days.

• ✓Default: deposit money of another within five business days of receipt
• ✓Exception applies only if the offer is withdrawn before acceptance or rejected with no counteroffer within the five-day window
• ✓Returned funds must be given back to the offerer in the same form received, upon request
• ✓Ongoing negotiations, attorney review, or a request to hold funds require deposit within five business days

Brokers must keep records of all funds of others for at least six years from receipt. Cash trust funds require a signed written receipt to the payor (date, amount, purpose, source). Required records include checkbook references, an appropriate trust ledger book (a regular checkbook ledger is insufficient), at least quarterly reconciliations, bank statements/cancelled checks/deposit slips, offers, contracts, listings, leases, management agreements, owner/tenant statements, records of payments to licensees and cooperating brokers, and security deposit receipts. Trust withdrawals must be by authorized bank transfer or check to a named payee — never to cash.

• ✓Records of others' funds retained at least six years from receipt
• ✓Cash trust funds require a signed written receipt stating date, amount, purpose, and payor
• ✓An appropriate trust ledger book is required — a regular checkbook ledger is insufficient
• ✓At least quarterly reconciliation of checkbook, bank statement, and client trust ledger balances
• ✓Trust/escrow withdrawals only by authorized intra/interstate bank transfer or check to a named payee, never to cash
• ✓Non-trust transaction records kept six years; unaccepted offers and expired listings (no contract/tenancy) kept six months

All files on pending and closed sale, exchange, or lease transactions, all listing files for sales or rentals, and all property management files must be maintained or stored at the offices of brokers licensed as employing, corporate, or partnership brokers. Upon terminating employment or transferring to another broker, no licensee (salesperson (referral), salesperson, or broker-salesperson) may remove or cause the removal of any file contents from the broker's offices. 'Files' means all transaction records required to be kept by brokers under N.J.A.C. 11:5-5.4.

• ✓Transaction, listing, and property management files must be stored at the employing/corporate/partnership broker's office
• ✓No salesperson (referral), salesperson, or broker-salesperson may remove file contents when leaving or transferring brokers
• ✓'Files' means all transaction records required under N.J.A.C. 11:5-5.4

A salesperson licensed with a real estate referral company (formerly 'referral agent') is strictly limited in brokerage activity. They may only: (1) direct prospects to websites and other sources of real estate information generally available to the public; and (2) refer prospects for sale, purchase, exchange, leasing, or rental to the broker through whom they are licensed, or (if that broker authorizes) to another licensee. When referring under such authorization, the salesperson (referral) must give written or electronic notice to their broker or the broker's designee (a broker-salesperson or salesperson) at the time the referral is made. Under N.J.S.A. 45:15-16, all compensation payable to the salesperson (referral) must be paid by the broker through whom they are licensed. The term was renamed effective January 20, 2026.

• ✓Referral salesperson activity is limited to directing prospects to public info sources and referring prospects to their broker (or authorized licensee)
• ✓Written or electronic notice must be given to the broker/designee at the time a referral is made
• ✓All compensation to a salesperson (referral) must be paid by the broker through whom they are licensed (N.J.S.A. 45:15-16)
• ✓'Referral agent' was renamed 'salesperson (referral)' effective January 20, 2026

A salesperson (referral) may not be employed by or licensed with more than one real estate broker at any given time. Additionally, no person may be simultaneously licensed as a salesperson (referral) and as a real estate broker, broker-salesperson, or salesperson in New Jersey. These licenses are mutually exclusive.

• ✓A salesperson (referral) may be employed/licensed with only one broker at a time
• ✓No person may hold a salesperson (referral) license simultaneously with a broker, broker-salesperson, or salesperson license

A licensee who solicits or accepts any fee, kickback, compensation, or thing of value merely for referring a customer or client to a lender, mortgage broker, or other provider of related services is subject to sanction by the Commission for conduct demonstrating unworthiness, bad faith, and dishonesty. Any compensation received under N.J.A.C. 11:5-7.1(e) for services in related transactions must be for services actually performed beyond mere referral. Compliance with the anti-kickback provisions of RESPA (12 U.S.C. § 2607), its regulations, or HUD RESPA opinions is deemed compliance with this subsection.

• ✓Soliciting or accepting anything of value merely for referring a client to a lender, mortgage broker, or related service provider is sanctionable (unworthiness, bad faith, dishonesty)
• ✓Compensation for related transactions must be for services actually performed beyond mere referral
• ✓Compliance with RESPA (12 U.S.C. § 2607) and HUD RESPA guidance is deemed compliance with this rule

No person may engage, directly or indirectly, in the business of a real estate broker, broker-salesperson, or salesperson, temporarily or otherwise, without being licensed. This also prohibits advertising or representing oneself as authorized to act as a broker, broker-salesperson, or salesperson, or to engage in any of the activities described in R.S.45:15-3, without a license.

• ✓A license is required to engage directly OR indirectly in real estate brokerage, even temporarily
• ✓You may not advertise or represent yourself as authorized to act as a broker, broker-salesperson, or salesperson without a license
• ✓The three license categories are broker, broker-salesperson, and salesperson

Under 45:15-2, any single act, transaction, or sale constitutes 'engaging in business' within the meaning of the license law. A person cannot avoid licensing requirements by claiming they only performed one transaction.

• ✓A single act, transaction, or sale is enough to constitute engaging in the real estate business
• ✓One-time activity does not exempt a person from the licensing requirement

A real estate broker is a person, firm, or corporation who, for a fee, commission, or other valuable consideration (or expectation thereof), lists, sells, exchanges, buys, or rents real estate; offers or attempts to negotiate such transactions; collects rent; solicits prospects; assists in procuring prospects or negotiating/closing transactions; negotiates mortgage loans for others; or conducts public/private competitive sales of land. The term also includes anyone who supervises a real estate referral company.

• ✓A broker may be a person, firm, or corporation and acts for a fee, commission, or valuable consideration (or expectation thereof)
• ✓Broker activities include listing, selling, buying, renting, exchanging, negotiating loans, collecting rents, and soliciting/procuring prospects
• ✓A broker includes any person, firm, or corporation who supervises a real estate referral company

A real estate salesperson is a natural person who, for compensation, is employed or contracted by and operates under the supervision of a licensed broker to sell, buy, negotiate, lease, rent, collect rents, or solicit prospects. A salesperson must always work under a licensed broker's supervision. The definition also includes a salesperson licensed with a real estate referral company unless otherwise indicated.

• ✓A salesperson must be a natural person operating under the supervision of a licensed broker
• ✓A salesperson works under and is compensated by the broker; they cannot operate independently
• ✓The salesperson definition includes referral-company salespersons unless otherwise indicated

A real estate broker-salesperson is a natural person who is qualified to be licensed as a broker but who, for compensation, is employed or contracted by and operates under the supervision of a licensed broker to perform the functions of a salesperson. Despite qualifying as a broker, the broker-salesperson still works under another broker's supervision.

• ✓A broker-salesperson is qualified to be a broker but chooses to work under a supervising broker
• ✓A broker-salesperson performs the functions of a salesperson while under broker supervision

No person, firm, partnership, association, or corporation may bring or maintain an action in NJ courts to collect compensation for brokerage acts without alleging and proving they were a duly licensed broker at the time the cause of action arose. A salesperson or broker-salesperson may only sue their employing broker (not third parties) for compensation, and must prove they were duly licensed at the time.

• ✓To sue for compensation as a broker, you must allege and prove you were duly licensed when the cause of action arose
• ✓A salesperson or broker-salesperson can only bring an action for compensation against their own employing/contracting broker
• ✓Being unlicensed at the time of the transaction bars recovery of a commission in court

Under 45:15-3.2, no broker-salesperson or salesperson may commence business activity for a broker, and no broker may authorize them to act, until a written agreement signed by both parties recites the terms of the retention. The business affiliation may be either an employment relationship or an independent-contractor arrangement, and its nature must be defined in the written agreement.

• ✓A signed written agreement between broker and licensee is required BEFORE the licensee commences any business activity
• ✓The affiliation may be either employee or independent contractor, and the nature must be specified in the written agreement

All persons desiring to become real estate brokers, broker-salespersons, or salespersons must apply to the New Jersey Real Estate Commission. Applicants must meet minimum age, education, and character requirements, and pay a non-refundable application fee. In the case of an association or corporation, the directors must also meet the age requirement.

• ✓Every applicant must be at least 18 years of age; directors of an association or corporation must also be 18 or over
• ✓Every applicant must have the equivalent of a high school education
• ✓Application must be made on forms prescribed by the commission and accompanied by a non-refundable $50 application fee
• ✓Applicant must furnish evidence of good moral character; members, officers, or directors of an association, partnership, or corporation must also furnish such evidence

Before any license is granted, the applicant (and in the case of an entity, the partners/directors/officers actively engaged in the business) must pass a State examination administered under commission supervision.

• ✓The examination tests general knowledge of NJ statutes concerning real property, conveyancing, mortgages, agreements of sale, leases, the provisions of R.S.45:15-1 et seq., and commission rules
• ✓A license is granted only upon satisfactorily passing the examination and fulfilling all other qualifications
• ✓The commission may make rules and regulations for the conduct of examinations

Licenses expire at the end of a two-year term set by the commission and are renewed biennially without examination upon fee payment and completion of continuing education, with an exception for referral company salespersons.

• ✓A license expires on the last day of a two-year license term established by the commission
• ✓Renewal is without examination, biennially, upon payment of the fee fixed by R.S.45:15-15
• ✓Broker, broker-salesperson, and salesperson renewals require completion of applicable continuing education, EXCEPT a salesperson licensed with a real estate referral company is not required to complete continuing education for renewal

Every individual applicant for a salesperson license must complete a mandated number of pre-licensure education hours, including specific hours dedicated to ethics and fair housing, at a commission-licensed school.

• ✓Salesperson applicants must complete 75 hours in the aggregate of real estate courses at a commission-licensed school as a prerequisite to admission to the examination
• ✓At least three hours must be on ethics and ethical conduct in the salesperson profession
• ✓At least one hour must be on fair housing and housing discrimination

Every individual applicant for a broker or broker-salesperson license must complete a greater number of pre-licensure hours, including a significant ethics component and fair housing instruction.

• ✓Broker/broker-salesperson applicants must complete 150 hours in the aggregate of real estate and related courses at a commission-licensed school
• ✓Thirty hours must be on ethics and ethical conduct in the broker profession
• ✓At least one hour must be on fair housing and housing discrimination
• ✓The commission may approve specialized courses from non-school providers to fulfill a portion of the total broker pre-licensure requirement

Every individual, partnership, or corporation licensed as a real estate broker must maintain a special account in a state- or federally-chartered bank, savings bank, savings and loan, or other depository institution physically located and authorized to do business in New Jersey and approved by the commission. Into this account the broker must deposit and maintain all monies received while acting as a broker, escrow agent, or temporary custodian of others' funds in NJ real estate transactions. The account must be in the broker's licensed name, designated as the 'trust account' or 'escrow account,' and kept separate and apart from all other personal and business accounts. All checks and deposit slips must bear the words 'trust account' or 'escrow account.' This requirement does NOT apply to an individual licensed as a broker-salesperson.

• ✓Brokers must maintain a special trust/escrow account in a commission-approved NJ depository institution for all monies received as broker, escrow agent, or custodian of others' funds
• ✓The account must be in the broker's licensed name, labeled 'trust account' or 'escrow account,' and kept separate from all personal and business accounts
• ✓All checks and deposit slips must contain the words 'trust account' or 'escrow account'
• ✓This requirement does not apply to an individual licensed as a broker-salesperson

Any real estate licensee who, in performing activities under R.S.45:15-3, receives monies of others as a representative of a broker acting as escrow agent or temporary custodian must accept the monies only if they are cash or a negotiable instrument payable to the broker through whom the individual is licensed (or another form the commission prescribes by rule). The licensee must, immediately upon receipt, account for and deliver the funds to the broker for deposit into the escrow/trust account, or for other disposition required by the escrow agreement.

• ✓A licensee may accept others' monies only as cash or a negotiable instrument payable to the broker through whom the licensee is licensed (or another commission-prescribed form)
• ✓The licensee must immediately account for and deliver received funds to the broker for deposit into the escrow/trust account or as the escrow agreement requires

All licenses issued to brokers, broker-salespersons, and salespersons are kept by the employing/contracting broker, while the accompanying pocket card is delivered to the licensee, who must possess it at all times when engaged in real estate business. When a licensee is terminated or resigns, written notice with the effective date must be given (by the broker upon termination, or by the licensee upon resignation). Within five business days of the effective date, the broker must either (a) deliver/mail the license to the commission and send written notice to the licensee's last known residence (with a copy to the commission), or (b) deliver prescribed transfer materials to the departing licensee and commission. No licensee may perform any acts under the authority of that license after the effective date of termination/resignation until authorized by the commission. A new license may be issued upon a $25 fee and proof of new employment/contract with a licensed broker. A broker-salesperson or salesperson must be licensed under one broker only and cannot be licensed with more than one broker at the same time.

• ✓Licenses are held by the employing/contracting broker; the licensee keeps the pocket card and must have it when engaged in real estate business
• ✓Upon termination or resignation, the broker must act within five business days by delivering the license to the commission (with notice to the licensee) or providing prescribed transfer materials
• ✓A terminated/resigned licensee may not perform any licensed acts until authorized by the commission; a new license requires a $25 fee and proof of new affiliation
• ✓A broker-salesperson or salesperson may be licensed under only one broker at a time

Licenses are issued for two-year (biennial) terms. The biennial fee is $200 for a broker's license, $200 for a broker-salesperson's license, $100 for a salesperson's license, and $100 for a branch office license. Late renewal fees (if a licensee fails to apply before expiration) are $20 for a salesperson/broker-salesperson and $40 for a broker, and the commission may refuse renewal for sufficient cause. The commission must refuse to renew the license of any licensee convicted of an offense enumerated in C.45:15-19.1 during the last license term (unless already subject to a revocation proceeding). Initial and reinstated license fees are based on the biennial fees, with a full biennial fee payable for the term in which the application is received.

• ✓Biennial fees: broker $200, broker-salesperson $200, salesperson $100, branch office $100; licenses run for two-year terms
• ✓Late renewal fees are $20 (salesperson/broker-salesperson) and $40 (broker); the commission may refuse renewal for sufficient cause
• ✓The commission must refuse renewal for a licensee convicted of a C.45:15-19.1 offense during the last license term unless already the subject of a revocation proceeding

No real estate salesperson or broker-salesperson may accept a commission or valuable consideration for performing any licensed act from any person except his employer or contracting broker, who must be a licensed real estate broker. This channels all compensation through the supervising broker.

• ✓A salesperson or broker-salesperson may accept commissions or valuable consideration only from his employer/contracting broker
• ✓That employing or contracting broker must be a licensed real estate broker

The NJREC requires each natural person licensed as a real estate broker, broker-salesperson, or salesperson to complete continuing education (CE) as a condition of biennial license renewal under R.S.45:15-10. The maximum requirement is 16 hours per biennial term. Salespersons licensed with a real estate referral company are exempt from CE. Brokers or broker-salespersons with 40+ years of experience (including equivalent experience in other jurisdictions as determined by the commission) are also exempt.

• ✓CE is required as a condition of biennial license renewal for brokers, broker-salespersons, and salespersons
• ✓No more than 16 hours of CE may be required per biennial term
• ✓Salespersons licensed with a real estate referral company are exempt from CE
• ✓Brokers/broker-salespersons with 40+ years of experience are exempt from CE

CE requirements must be completed on or before April 30 of the year in which the biennial license expires. A licensee who fails to complete CE before May 1 of the second year of the biennial term is subject to a reasonable processing fee determined by the commission, not to exceed $200.

• ✓CE must be completed on or before April 30 of the year the biennial license expires
• ✓Failure to complete CE before May 1 subjects the licensee to a processing fee
• ✓The late processing fee may not exceed $200

A person who completes one or more broker pre-licensure education courses during a biennial term is deemed to have fulfilled the CE requirement for that license term. A salesperson initially licensed during the first year of a two-year term must complete all applicable CE to renew; a salesperson initially licensed in the second year of the term is not required to fulfill any CE to renew at the term's conclusion.

• ✓Completing broker pre-licensure courses during a term is deemed to fulfill the CE requirement
• ✓A salesperson first licensed in the first year of the term must complete all applicable CE to renew
• ✓A salesperson first licensed in the second year of the term is exempt from CE for that renewal

At least 50% of required CE must consist of core topics: agency; disclosure; legal issues; ethics (not less than two hours); fair housing; rules and regulations; real estate licensee safety; financial literacy and planning; and any other core topics prescribed by the commission. Core topics may never be required to exceed 60% of total CE hours. Each hour of instruction equals one credit.

• ✓At least 50% of required CE must be core topics; core topics may never be required to exceed 60%
• ✓Ethics must comprise not less than two hours
• ✓Core topics include agency, disclosure, legal issues, ethics, fair housing, rules/regulations, licensee safety, and financial literacy
• ✓Each hour of instruction equals one credit

Notwithstanding the general core-topic rules, the commission must require at least one hour on the core topic of fair housing and housing discrimination during each biennial license term. The commission must also require that a CE course on agency be completed by every broker, broker-salesperson, and salesperson as a condition for license renewal during each biennial term (added by P.L. 2024 c.32, eff. 2024-08-01).

• ✓At least one hour of CE on fair housing and housing discrimination is required each biennial term
• ✓A CE course on agency must be completed by every licensee each biennial term as a renewal condition
• ✓These requirements apply notwithstanding the general 50%/60% core-topic allocation

'Subdivision' and 'subdivided lands' mean land situated OUTSIDE the State of New Jersey (whether contiguous or not) where one or more lots, parcels, units, or interests are offered as part of a common promotional plan of advertising and sale. It expressly includes condominiums (Condominium Act), homeowners associations, housing cooperatives, and community trusts. This is a critical exam distinction — the Act governs out-of-state land sold to New Jersey residents.

• ✓Subdivided lands are located OUTSIDE New Jersey but offered to NJ purchasers
• ✓The definition includes condominiums, homeowners associations, housing cooperatives, and community/other trust devices
• ✓'Common promotional plan' means offers by a single person/group acting in concert where interests are contiguous or advertised as a common entity

Unless exempt, no person may offer, dispose, or participate in the disposition of subdivided lands in New Jersey except in accordance with the Act. A current public offering statement disclosing all information required by section 12 must be delivered to the purchaser, who must have a reasonable opportunity to examine it before the disposition takes place.

• ✓Registration/compliance is required before offering or disposing of subdivided lands in NJ
• ✓A current public offering statement must be delivered to the purchaser prior to disposition
• ✓The purchaser must have a reasonable opportunity to examine the public offering statement before disposition

Forms of conveyance for secondary-registration subdivided land must include a seven-day right of rescission. A purchaser may cancel without cause by delivering written notice by midnight of the seventh calendar day following execution of the contract OR the day the purchaser is notified that secondary registration is complete, whichever is later. A disclosure statement covering common property, owner obligations, HOA assessments, mandatory club membership, and special taxing districts must be provided with a signed receipt.

• ✓The purchaser has a seven-calendar-day right of rescission without cause, measured from contract execution or notice of completed registration, whichever is later
• ✓A disclosure statement detailing common property, HOA assessments, mandatory club membership and special taxing districts must be provided before contract execution, with a signed purchaser receipt

Unless the method is adopted to evade the Act, it does not apply to dispositions: by an owner for his own account in a single/isolated transaction; wholly for industrial/commercial purposes; by court order; by a governmental agency; of cemetery lots; of fewer than 100 lots/parcels/units; where common elements are limited to unimproved, unencumbered open space; or in developments comprised wholly of rental units (landlord-tenant). It also excludes certain mortgage-secured debt, REIT securities, registered securities, and oil/gas/mineral interests regulated as securities.

• ✓Offerings of fewer than 100 lots, parcels, units or interests are exempt
• ✓Single/isolated transactions by an owner for his own account, court-ordered, governmental, cemetery, all-rental (landlord-tenant), and industrial/commercial dispositions are exempt
• ✓Exemptions do not apply if the disposition method is adopted for the purpose of evading the Act
• ✓The commission may grant additional exemptions where enforcement is unnecessary for public/purchaser protection due to small amount or limited character

P.L. 2024 c.32 (effective August 1, 2024) established five statutory relationships between a brokerage firm and consumers: buyer's agent, seller's agent, disclosed dual agent, designated agent, and transaction broker. An 'agency relationship' is created between a brokerage firm and a principal for real estate brokerage services. A 'principal' is a buyer or seller who has an agency relationship with a firm. These sections apply alongside — and do not replace — the existing broker/broker-salesperson/salesperson licensing provisions.

• ✓The Act created five statutory relationships: buyer's agent, seller's agent, disclosed dual agent, designated agent, and transaction broker
• ✓'Agent' means a real estate brokerage firm (including affiliated brokers, broker-salespersons, and salespersons) that has an agency relationship with a principal
• ✓'Principal' means a buyer or seller who has an agency relationship with a brokerage firm
• ✓The Act took effect August 1, 2024 and supplements existing licensing provisions rather than replacing them

A buyer's agent is a brokerage firm that has an agency relationship working only with the buyer and owes fiduciary duties to the buyer. A seller's agent works only with the seller and owes fiduciary duties to the seller. A firm performing services for a buyer is a buyer's agent unless it represents the seller (seller's agent), represents both (dual agent), agreed to be a transaction broker, or an affiliated licensee is the seller. The same default logic applies in reverse for sellers.

• ✓A buyer's agent works only with the buyer and owes fiduciary duties; a seller's agent works only with the seller and owes fiduciary duties
• ✓A firm serving a buyer is by default a buyer's agent unless one of four exceptions applies (represents seller, dual agency, transaction broker, or licensee is the seller)
• ✓A firm serving a seller is by default a seller's agent unless it represents the buyer, is a dual agent, is a transaction broker, or the licensee is the buyer

A transaction broker works with a buyer or seller (or both) without representing either party, has no agency relationship, and owes no fiduciary duties. A transaction broker shall not act as an agent, shall not promote one party's interest over the other's, and is not required to keep any information confidential. It must still treat all parties honestly and competently, present all offers timely, keep parties informed, facilitate closing, and advise parties to seek expert advice.

• ✓A transaction broker has no agency relationship and owes no fiduciary duties to either party
• ✓A transaction broker shall not promote one party's interest over the other's and is not required to keep information confidential
• ✓Transaction broker duties include treating all parties honestly, presenting all written offers timely with written confirmation, keeping parties informed, and facilitating closing

A 'brokerage services agreement' is a written agreement appointing a firm to represent a principal as agent or to work with a buyer/seller as a transaction broker. In residential transactions, the firm must enter into a brokerage services agreement with the buyer or seller before, or as soon as reasonably practical after, commencing brokerage services. A written agreement is NOT required with a buyer in a commercial transaction.

• ✓Brokerage services agreements must be in writing and include sale/rental listings, buyer-lessee agency, transaction broker, dual agency, and designated agency agreements
• ✓In residential transactions a firm must enter into a brokerage services agreement with the buyer/seller before or as soon as reasonably practical after commencing services
• ✓A brokerage services agreement is NOT required with a buyer in a commercial real estate transaction

A buyer's or seller's brokerage services agreement must state: its term (including any post-termination protection period); that the firm is appointed as the agent; whether the relationship is exclusive or nonexclusive; consent (with separate initialing/signature) to disclosed dual or designated agency plus acknowledgment that a dual agent will not advocate for one party to the detriment of the other; the firm's compensation, how it is calculated, and whether shared; and a disclosure that broker compensation is fully negotiable and not set by law. Seller agreements must also state whether the listing will be circulated on an MLS.

• ✓Agreement must state its term including any post-termination protection period, exclusivity, and agent appointment
• ✓Consent to disclosed dual or designated agency requires separate initialing or signature plus acknowledgment the dual agent won't favor one party
• ✓Agreement must disclose compensation, how it is calculated, whether shared, and that broker compensation is fully negotiable and NOT set by law

When acting as buyer's, seller's, disclosed dual, or designated agent, the firm owes non-waivable duties: strict compliance with agency law/fiduciary principles; reasonable skill and care; honesty and good faith; timely presentation of all written offers/counteroffers with written confirmation of receipt; obtaining a signed property condition disclosure statement (residential seller); disclosing all known material physical-condition information; accounting to the principal; providing the Consumer Information Statement in residential deals; written agency disclosure no later than signing; and reasonable effort to obtain material info and financial qualifications of buyers.

• ✓Core duties (skill/care, honesty/good faith, agency compliance, timely offer presentation) may NOT be waived
• ✓In a residential transaction the firm must provide the Consumer Information Statement and obtain a signed acknowledgment of receipt
• ✓The firm must disclose in writing, no later than when the principal signs the agreement, which agency relationship it has (in a separate 'Agency Disclosure')
• ✓The firm must disclose all known material information about the property's physical condition

A firm may act as a disclosed dual agent only with the informed consent of both parties, set forth in signed brokerage services agreements (residential) or otherwise in writing (commercial). A dual agent owes duties to both parties, must not take action detrimental to either, must not disclose confidential information about either, and must not advocate terms favorable to one party to the detriment of the other. A dual agent may be compensated by either or both parties if sources and amounts are disclosed in writing to both.

• ✓Disclosed dual agency requires the informed written consent of BOTH parties
• ✓A disclosed dual agent may not disclose confidential information about either party or advocate terms favorable to one to the detriment of the other
• ✓A dual agent may receive compensation from either or both parties only if sources and amounts are disclosed in writing to both
• ✓Presenting additional offers or showing competing properties does not constitute action adverse to a party

When different licensees at the same firm (or the same firm) would represent both buyer and seller, the firm may designate one licensee to solely represent the buyer and another to solely represent the seller. Designated agents are NOT dual agents — each owes fiduciary duties solely to their respective principal. A designated agency relationship requires a written designated agency agreement (which may be part of the brokerage services agreement) with the informed written consent of each party.

• ✓Designated agents are NOT dual agents and owe fiduciary duties solely to their respective principals
• ✓Designated agency requires a written agreement with the informed written consent of each party
• ✓A designated agent may receive compensation from either or both parties if sources and amounts are disclosed in writing to both

At any residential property showing generally open to the public, a sign must be posted at the entrance or on the sign-in sheet advising prospective buyers that the hosting firm represents the seller only and has no relationship with the buyer. The statute prescribes exact sign text stating the agent represents the seller, that information given is NOT confidential and may be disclosed to the seller, and that the buyer is entitled to a buyer's agent. Buyers already exclusively represented must disclose this on the sign-in sheet.

• ✓A sign must be posted at the open-house entrance or on the sign-in sheet stating the firm represents the seller only
• ✓The mandated text must warn that information given is NOT considered confidential and could be disclosed to the seller
• ✓A buyer already exclusively represented by a buyer's agent must disclose that representation on the sign-in sheet
• ✓The open-house agent is not precluded from becoming a disclosed dual agent or designated agent if the buyer agrees

• A. Requiring all applicants to submit a credit report from a nationally recognized reporting agency.
• B. Refusing to rent to a family with minor children in a building where the landlord occupies one unit of a two-unit structure.
• C. Declining to rent to an applicant who cannot demonstrate lawful ability to enter into a contract.
• D. Refusing to rent to a prospective tenant solely because the tenant has a housing choice voucher (Section 8). ✓ Answer

• A. Retain the interest as additional compensation for administering the security deposit account.
• B. Credit the interest annually to the tenant or pay it to the tenant in cash at the tenant's request. ✓ Answer
• C. Remit the interest annually to the New Jersey Department of Community Affairs.
• D. Apply the interest automatically toward the tenant's next month's rent.

• A. The tenant may withhold rent in full and the landlord has no right to pursue eviction until services are restored.
• B. The tenant may vacate the premises, terminate the lease, and sue for damages without being liable for future rent. ✓ Answer
• C. The tenant must first obtain a court order declaring constructive eviction before vacating.
• D. The tenant's only remedy is to file a complaint with the Bureau of Housing Inspection.

• A. New Jersey Real Estate Commission (NJREC)
• B. New Jersey Division of Consumer Affairs
• C. Bureau of Housing Inspection within the Department of Community Affairs ✓ Answer
• D. New Jersey Division of Fire Safety

• A. 30 days
• B. 60 days
• C. 3 months ✓ Answer
• D. 18 months

• A. No longer than 30 days after receiving the first written demand
• B. No longer than 90 days, after which the broker must file for interpleader
• C. The broker may hold the funds indefinitely in trust while awaiting mutual written consent or a court order, as long as the account is properly maintained ✓ Answer
• D. The broker must release the funds to the seller after 60 days of dispute without resolution