Before you read
Test yourself first: 5 questions
Question 1 of 5
At the outset of a working relationship with a consumer, a New Jersey licensee is required to present and explain a Consumer Information Statement (CIS). The CIS principally functions to:
Answer: B. The Consumer Information Statement describes the types of business/agency relationships available in New Jersey (such as seller's agent, buyer's agent, disclosed dual agent, and transaction broker) so the consumer can make an informed decision. It is not a price-setting document or a purchase contract.
Question 2 of 5
How should a New Jersey broker maintain the brokerage's trust (escrow) account records?
Answer: C. New Jersey brokers must maintain full, accurate trust-account records showing money received, held, and disbursed for each transaction. These records must be retained and made available for inspection by the Real Estate Commission.
Question 3 of 5
How long must a New Jersey broker generally retain transaction and brokerage records for Commission review?
Answer: B. New Jersey brokers must retain transaction and trust-account records for the period required by the Commission and produce them upon request. The exact period is set by regulation; the key principle is mandatory retention and availability for inspection.
Question 4 of 5
A New Jersey broker pays a referral fee for a closed transaction. To whom may the broker lawfully pay it?
Answer: B. Compensation for performing licensed brokerage activity, including referral fees, may be paid only to licensees (and is paid to a salesperson through their broker). Paying unlicensed persons for brokerage services is prohibited.
Question 5 of 5
A New Jersey licensee fails to complete the required continuing education by the renewal deadline. Which outcome is most consistent with New Jersey's CE enforcement approach?
Answer: B. In New Jersey, a licensee who has not completed required CE cannot validly renew and should not practice as though active until the outstanding CE is completed. CE is not waived for time elapsed and cannot be replaced by completing more transactions.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Earnest money and other client deposits must be placed in the broker's trust (escrow) account and kept separate from the brokerage's own funds. New Jersey is not a community-property state, so marital property interests are determined under its own equitable rules rather than community-property law.
New Jersey Contract/Transaction Specifics: FAQs
Is New Jersey Contract/Transaction Specifics on the real estate exam?
Yes. State License Law is a scored domain on the New Jersey real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does New Jersey test this differently?
New Jersey applies its own license law on top of the national portion. This page covers the New Jersey rules specifically, which is what the state section of your exam tests.
