A salesperson must work under and be supervised by a licensed broker.
Before you read
Test yourself first: 2 questions
Question 1 of 2
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 2 of 2
A New Jersey salesperson manages rental properties and collects rents on behalf of owner-clients. With respect to those funds, the salesperson must:
Answer: B. Money collected on behalf of others must be handled through the employing broker and kept separate from personal funds, consistent with New Jersey's trust/escrow handling requirements. Commingling client rents with personal or general operating funds, or withholding them, violates a licensee's fiduciary and regulatory duties.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Regulator: New Jersey Real Estate Commission (REC).
- REC sits within the NJ Department of Banking and Insurance (DOBI).
- Salesperson pre-licensing education: 75 hours of approved coursework.
- A salesperson must work under and be supervised by a licensed broker.
- REC issues, renews, suspends, and revokes real estate licenses statewide.
- REC enforces the license law and adopts the rules salespersons must follow.
- Salespersons cannot operate independently or hold escrow in their own name.
NJ License Law & Regulator Quick Sheet: FAQs
Is NJ License Law & Regulator Quick 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.
