Before you read
Test yourself first: 5 questions
Question 1 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.
Question 2 of 5
A New Jersey salesperson accepts a commission directly from a buyer without the knowledge or consent of her employing broker. This is:
Answer: A. In New Jersey a salesperson works under and is paid only by her employing broker. Accepting compensation directly from a member of the public, or from anyone other than the employing broker, is a license-law violation subject to discipline.
Question 3 of 5
A licensee induces a homeowner to list by falsely telling her that minority families are moving into the neighborhood and prices will collapse. Under New Jersey law this is:
Answer: A. Inducing sales or listings by representations about the entry of persons of a particular race, religion, or other protected class into a neighborhood is blockbusting (panic selling). It is illegal under fair housing law and is prohibited conduct for which a New Jersey licensee can be disciplined.
Question 4 of 5
Which agency has authority over a New Jersey broker who has mishandled trust account funds?
Answer: A. The New Jersey Real Estate Commission (REC), which operates under the Department of Banking and Insurance (DOBI), regulates licensees and can discipline brokers for trust-account violations.
Question 5 of 5
A New Jersey seller's agent discovers a known latent defect, a chronically wet basement, that the seller wants hidden. The agent's correct course of action is to:
Answer: A. Even while representing the seller, a licensee may not misrepresent or conceal known material defects. The duty of honesty and disclosure of material facts to the buyer overrides a client's instruction to conceal. Following the seller's instruction to hide the defect would be prohibited conduct subject to discipline.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Before disciplinary action, a licensee is generally entitled to notice and an opportunity for a hearing. New Jersey also maintains a Real Estate Guaranty Fund that can reimburse consumers who obtain an unsatisfied judgment against a licensee for certain wrongful acts, subject to statutory limits.
New Jersey License Discipline & Enforcement: FAQs
Is New Jersey License Discipline & Enforcement 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.
