(**) Disclosure: This post may contain affiliate links, meaning RealEstateCareerHQ.com will get a commission if you decide to make a purchase through the links, but at no additional cost to you.
To become a real estate agent in New Jersey, applicant must complete the 75 hours of pre-licensing real estate courses, pass the real estate salesperson exam, and register with the New Jersey Real Estate Commission. This is the governing body that issue licenses to real estate salesperson, brokers, and regulate the industry.
If you are interested in knowing about a real estate career in New Jersey, then this is the guide for you. Not only you’ll learn about the step-by-step process to become a real estate agent and broker, but you will also find helpful information such as the salary, career outlook and a list of top real estate firms in New Jersey.
7 Steps to Become a Real Estate Agent in New Jersey
Step 1: Meet the eligibility requirement
- Citizen of the United States or lawfully admitted alien
- At least 18 years of age
- Have a valid Social Security Number
- Hold a high school diploma or equivalent
Step 2: Complete the pre-licensing education
You are required to take 75 hours of course which covers different real estate concept. It must be taken from an approved education provider.
The course would cover the NJ License Law, the regulations of the New Jersey Real Estate Commission, the Law of Agency and of Fair Housing Laws. You will also learn real estate mathematics, real estate valuation concepts and mortgage calculations.
When choosing a real estate school, I prefer one where you could take the courses online. This way, you could study at your own pace whenever and wherever. The CE Shop is a trustworthy real estate education provider. You may click here to see whether they offer pre-licensing course in your state. (**)
Step 3: Pass the New Jersey Real Estate Salesperson Examination
The New Jersey Real Estate Salesperson Exam consists of 110 questions. You’ll be given 4 hours in writing it and the required passing score is 70%.
It is to test your knowledge on the real estate topics that are covered in the pre-licensing course and administered by the PSI Services. To register, you need to complete their exam registration form and provide them with the required documents. Also, there is a $45 examination fee which could be paid by credit card.
At the time I’m writing this post, you are allowed to take the NJ real estate exam online. I’ll include more details about the exam later in the post.
Step 4: Go through a background check
The NJ Real Estate Commission needs to protect the public interest, so they will conduct a background check on all real estate license applicants. To do so, you have to complete a fingerprinting process (Live Scan) by scheduling an appointment with an approved vendor.
This will be used to check the criminal history records of the FBI.
As I’m reading the NJ Real Estate Commission’s website, they instruct that you MUST complete the fingerprinting process as soon as you pass the exam. To prove that you have completed the process, you are required to provide:
- New Jersey Universal Fingerprint Form
- Payment receipt issued by IDEMIA, the Live Scan fingerprint vendor
Step 5: Work with a NJ licensed real estate broker
In order to place any real estate business, you must work with a real estate broker who would sponsor your license.
When choosing a real estate brokerage, many people only focus on the commission split, but there are many other factors you also need to consider.
For example, what type of training will they provide? Will they equip you with the skills in finding qualify prospects and closing a sale? Is there a shared office space you could use? Can the brokerage provide you with adequate administrative and marketing support? Will they provide you with leads to work on? Do they utilize up-to-date technology (i.e.: CRM, software subscription) to streamline the daily workflow.
Finding a good trainer is crucial at the initial stage of your real estate career.
Below are the top real estate brokerage in New Jersey based on their sales volume in 2018. The figures are obtained from RealTrends.com.
| NJ Real Estate Brokerages | Cities | 2018 Sales Volume |
|---|---|---|
| NRT LLC | Madison | $178,153,264,000 |
| Keller Williams Realty Ridgewood | Ridgewood | $2,001,747,038 |
Prominent Properties Sotheby's International Realty | Ridgewood | $1,834,291,327 |
Berkshire Hathaway HomeServices New Jersey Properties | Somerset | $1,563,196,558 |
| Keller Williams Realty West Monmouth | Morganville | $1,386,086,827 |
| Keller Williams Premier Properties | Summit | $1,053,292,621 |
| Keller Williams City Life Realty | Hoboken | $931,733,178 |
| Diane Turton, Realtors | Point Pleasant Beach | $858,354,215 |
| Keller Williams Realty Morristown | Morristown | $756,524,698 |
| Heritage House Sotheby's International Realty | Holmdel | $701,149,827 |
| Keller Williams Montclair, NJ | Montclair | $686,599,381 |
| Callaway Henderson Sotheby's International Realty | Princeton | $673,015,518 |
| RE/MAX Select | Westfield | $665,818,384 |
| RE/MAX at Barnegat Bay | Forked River | $576,107,585 |
Step 6: Register with the New Jersey Real Estate Commission
The license needs to be applied through a sponsoring real estate broker. There is a $160 fee which covers the license fee, application fee and guaranty fund. This can be done through the Online Licensing Services.
Step 7: Maintain the real estate license
You are required to renew the license every two years. In addition to the renewal application, all New Jersey real estate salespersons need to complete 12 credit hours of CE courses and at least six of them must cover the core topics. The core topics include:
- Agency
- Disclosure
- Legal Issues (i.e. listing agreements, contracts, leases, attorney review)
- Ethics (2 credit hours mandatory)
- Fair Housing and New Jersey Law Against Discrimination (1 credit hour mandatory)
- New Jersey Real Estate Broker and Salesperson Statues and Regulations
- State and Federal Environmental Laws/Regulations Pertaining to Real Estate
- Legal Requirements regarding Escrow Monies and Financial Recordkeeping
- Real Estate Licensee Safety
- Real Estate Financial Literacy and Planning
The remaining 6 credits could be elective classes and below is the list of approved elective topics.
- Commercial Real Estate
- Property Management
- Seasonal Rentals
- Real Estate Sales Full Disclosure Act and Real Estate Timeshare Act
- Financing
- Land Use
- Real Estate Valuation
- Foreclosure and Short-Sale Transactions
- Specific Aspects of Residential Real Estate Transactions
Here’s a Snippet of What Lori James Think about Being a Real Estate Agent!
“I think being a real estate agent is a good career for self motivated people. You can make your own hours, but you have to plan out your week in advance, so you have a work life balance.”
– Lori James, Real Estate Agent at Real Living Real Estate.
Here’s the article where you can read more on Lori’s thoughts about the real estate sales profession. In there, you can also find valuable feedback from multiple professional real estate agents. Don’t miss out!
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Here is more info on the New Jersey Real Estate Salesperson Examination
Real Estate Exams Summary
| Examination Portion | # of Questions | Time Allowed | Required Passing Score |
|---|---|---|---|
| Salesperson | 110 (110 points) | 4 hours | 70% (77 correct) |
Exam Content
In most other states, the real estate exam is divided into the National and State Portion. I read through the NJ Exam Candidate Information Bulletin Booklet, and it didn’t specify it has two separate parts. However, the NJ exam topics are very similar to those in other states.
Below is part of the exam topics. I believe the questions could be more related to the National level.
| Exam Content | Weighting (Salesperson) |
|---|---|
| Property ownership | 8% |
| Land use controls and regulations | 5% |
| Valuation and market analysis | 7% |
| Financing | 10% |
| General principles of agency | 13% |
| Property disclosures | 6% |
| Contracts | 17% |
| Leasing and Property Management | 3% |
| Transfer of Title | 8% |
| Practice of real estate | 13% |
| Real estate calculations | 10% |
Here are the remaining exam topics. They should correspond more to questions on the State level.
| Salesperson (# of Items) | |
|---|---|
| Duties and Powers of the Department and the State Board of Real Estate | 2 |
| Licensing Requirements | 3 |
| Statutory Requirements Governing the Activities of Licenses | 22 |
| Additional Requirements | 3 |
Effective tips in passing the real estate exam
Screen shot from PSI Real Estate Exams Candidate Information Bulletin
The Colibri is the online school that I like. Their Exam Prep have helped thousands of students pass their exam on the first try. They even have a “Pass or Don’t Pay” Guarantee. That’s why confident they are with their program. You may click here to view their exam prep. (**)
To give you a better idea about the real estate exam, here are a few sample questions for your reference.
A. Which of the following interests in property is held by a person who is granted a lifetime use of a property that will be transferred to a third party upon the death of the lifetime user?
1. A life estate.
2. A remainder estate.
3. An estate for years.
4. A reversionary estate.
B. Which of the following statements BEST identifies the meaning of the term, “rescission of a contract”?
1. A ratification of a contract by all parties.
2. A return of all parties to their condition before the contract was executed.
3. A transfer or assignment of a particular responsibility from one of the parties to another.
4. A review of the contract by the legal counsel of either party that may result in a cancellation without penalty or further obligation
C. Which of the following clauses in a mortgage allows the lender to demand loan repayment if a borrower sells the property?
1. Defeasance
2. Prepayment
3. Acceleration
4. Alienation
Quote from New Jersey Real Estate Salesperson and Broker Candidate Information Bulletin
How long does it take to become a licensed real estate agent in New Jersey?
It takes approximately four months to become a licensed real estate agent in New Jersey. But it also depends on the time it takes you to complete the 75 hours pre-licensing course, exam, background check, application, and get sponsorship by an actively licensed NJ managing broker.
You may speed up in getting the real estate license by taking online courses. This way, you’ll have the flexibility to finish the pre-licensing education at a quicker pace.
How much does it cost to get a New Jersey real estate salesperson license?
It costs approximately $505 to get the real estate license in New Jersey. Here is the breakdown:
- Pre-licensing courses with exam prep is approximately $240
- Exam fee $45
- Background check $60
- Application fee $160
I have a real estate license in another state. Can I become licensed in New Jersey by applying through reciprocity?
Unfortunately, at the time I’m writing this post, New Jersey does not have reciprocity with any state.
However, if you are a disabled U.S Veteran and a citizen of New Jersey, you may apply for an education waiver. But you should confirm with the Commission’s Education Waiver Section at 609-292-7272.
Can a felon be a real estate agent in New Jersey?
The NJ Real Estate Commission would put into consideration of the applicant’s honesty, trustworthiness, character and integrity.
” If an applicant has ever been convicted of a crime, or is currently on parole or probation their application for a real estate license may be denied.”
Quote from www.nj.gov/dobi/division_rec/licensing/reclicrequire.htm
Whether a felon can be a real estate agent is subjected to how the licensing commission evaluates the case. But don’t get discouraged as everyone has a past. The most important is that you can demonstrate that you will serve the public in a fair, honest, and open manner.
You may want to consult with the NJ Real Estate Commission before you jump through all the hoops on studying and writing the exam.
However, if you find there is incorrect details on the FBI identification record, you may challenge its accuracy set forth in Title 28, Code of Federal Regulations (CFR), 16.34.
How much do real estate agents make in New Jersey?
Real estate agents in New Jersey make an average annual income of $69,660, it typically falls between $43,350 and $66,880. Top earning sales agent are making $143,230 per year. (+)
You earning as a real estate agent would depend on the price range of the properties that you work with, the number of transactions you could complete, the commission splitting schedule with the real estate brokerage and other factors.
At the beginning phase in your real estate career, you probably would not make a lot, because you built up the client base and established trust with the prospects. But as you continue to gain experience and sharpen your knowledge, you should be able to notice a significant improvement to your earning.
(*) Source: Bureau of Labor Statistics May 2019
[Read: Real Estate Agent Salary Guide – What Makes a 6 Figures Earner?]
Is there a demand for real estate agents in New Jersey?
New Jersey has a population of 8.9 million, making it the 11th most populous state. Whenever there are transactions in buying, selling or renting property, there will be a demand for NJ real estate agents.
According to the NJ Realtors, there were 10,188 closed sales in March 2021, which was up by 23.3% when compared to the same month of the previous year. Bergen County (932) and Ocean County had the most closed sales during that period. The median sales price was $375,000.
Currently, there are 2020 real estate agents in New Jersey, which works out to be 0.533 real estate agents per 1000 of workers. (*)
(*) Source: Bureau of Labor Statistics May 2019
So do you find this guide helpful? If so, please share it!
Practical ideas to build a real estate career in New Jersey
Tip#1: Network with other real estate professionals
You may consider joining the New Jersey REALTORS. This allows you to connect with other real estate salespeople and brokers, thus learn from their valuable experience and share ideas with one another.
In addition, you should build a referral network with other real estate professionals. such as mortgage agents, lenders, notary loan signing agents, and appraisers.
Here’s a list real estate professional groups on our resource page. Hope this will be useful to you.
Tip#2: Become a licensed real estate broker
Once you have established a solid client base and develop the necessary skills, then you could consider expanding your business to become a real estate broker.
This allows you to build a team of real estate agents, where your brokerage could be providing training, marketing, administrative support, office space, and a subscription to industry software.
In return, you would get a share of the commission from the transactions that your real estate sales associates handle. Thus, lead to a scalable business model.
Here’s a post on how to become a NJ real estate broker.
Tip#3: Consider the commercial real estate niche
To become a commercial real estate agent in New Jersey, you need to complete 75 hours of pre-licensing education, pass the real estate salesperson exam, and register with the NJ Real Estate Commission.
The Real Estate Commission do not issue separate licenses for residential and commercial agents. So, the requirement is basically the same one we just went through. Furthermore, if you are going to pursue a career as a CRE agent, you should look for a brokerage that could give you the right support and resources. After all, not every brokerage specializes in commercial properties.
Here’s a Snippet of what Amie Lenhart thinks about being a Commercial Real Estate Agent!
“… I work as my clients biggest advocate and work on behalf of their best interest. My job is an agent is to research, match needs, know the market, tour, draft LOI’s and Lease Proposals and successfully negotiate for my client meeting their goals and objectives...
… I think being a real estate agent is a great career. I love the hustle and relationship building aspect of this job and working for myself...”
– Amie Lenhart ,Commercial Real Estate Agent with Donald R. Kenney and Company Realty (DRK)
Here’s the article where you can read more on Amie’s thoughts about the real estate sales profession. In there, you can also find valuable feedback from multiple professional real estate agents. Don’t miss out!
I have more questions about the real estate license, whom should I contact?
For licensing inquiry, you could contact:
- Licensing Bureau, Real Estate. NJ Dept. of Banking and Insurance
- PO Box 474, Trenton, NJ 08625-0474
- Phone: 609-292-7272
- FAX: 609-292-0944
- E-mail: relic@dobi.nj.gov
If you are reading up to this point, I bet you must be interested in getting a real estate license. Your first step is to complete the pre-licensing courses. You should select one that has an excellent reputation and long-term track record of satisfying students. The Colibri is exactly that! You may click here to check it out yourself. (**)
(**) Affiliate Disclosure: Please note that some of the links above are affiliate links, and at no additional cost to you. Our company, JCHQ Publishing will earn a commission if you decide to make a purchase after clicking on the link. Please understand that we include them based on our experience or the research on these companies or products, and we recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something through the links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. For full and exact details, please contact the New Jersey Real Estate Commission.
Reference:
- New Jersey Real Estate Commission (Source)
- New Jersey REALTORS (source)
- Monthly Housing Market Statistics (source)
- New Jersey Real Estate Licensing Salesperson and Broker Examinations Candidate Information Bulletin (Source)
- Bureau of Labor Statistics – Real Estate Agents (May 2018) (Source)
- Real Trends: 2018 Real Trends 500 by Volume (Source)
- Zillow.com – New Jersey Home Prices & Values (Source)
- World Population Review- Population of Cities in New Jersey (Source)
