A licensee must disclose whom they represent before sharing confidential information.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Under New Jersey's agency model, a licensee who works with a buyer or seller but does NOT represent either party as a fiduciary is acting as a:
Answer: B. New Jersey recognizes the transaction-broker relationship, in which the licensee works with a consumer to facilitate the transaction without representing that consumer's interests as an agent or fiduciary. This relationship is described in the CIS.
Question 2 of 5
Which agency is responsible for licensing and regulating real estate salespersons and brokers in New Jersey?
Answer: A. The New Jersey Real Estate Commission (REC) regulates and licenses real estate salespersons and brokers. The REC operates as a unit within the New Jersey Department of Banking and Insurance.
Question 3 of 5
Which agency is responsible for licensing and regulating real estate brokers and salespersons in New Jersey?
Answer: A. The New Jersey Real Estate Commission (REC) is the licensing and regulatory authority for real estate licensees and operates as a division within the New Jersey Department of Banking and Insurance (DOBI).
Question 4 of 5
What disclosure form must a New Jersey licensee provide to a consumer at the first contact involving a discussion of the consumer's specific real estate needs?
Answer: B. New Jersey licensees must provide the Consumer Information Statement (CIS) on agency relationships at the first substantive contact, explaining the types of business relationships available to the consumer.
Question 5 of 5
During a New Jersey Real Estate Commission disciplinary proceeding, which of the following best describes a licensee's procedural rights?
Answer: B. As an administrative agency action, a disciplinary proceeding affords the licensee due process, including notice of the charges and an opportunity to be heard at a hearing before any sanction is imposed.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- A Consumer Information Statement (CIS) explaining agency relationships must be provided.
- The CIS is given at first contact / first substantive discussion about a property.
- Common roles: seller's agent, buyer's agent, disclosed dual agent, and transaction broker.
- Disclosed dual agency requires the informed written consent of both parties.
- A licensee must disclose whom they represent before sharing confidential information.
- Agents owe statutory duties (loyalty, confidentiality, disclosure) to their client.
- Salespersons act on behalf of their supervising broker in every transaction.
NJ Agency Model Cheat Sheet: FAQs
Is NJ Agency Model Cheat Sheet 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.
