Studying the New Jersey Law Items on the PSI Exam: A Topic-by-Topic Guide
The short answer: The New Jersey section of PSI's salesperson outline lists 30 items in four areas: Duties and Powers of the Real Estate Commission (2), Licensing Requirements (3), Statutes and Rules Governing Licensee Activities (22), and Additional Requirements (3) (PSI bulletin). The fastest way to study them is to pair each topic with the statute (N.J.S.A. 45:15) or Commission rule (N.J.A.C. 11:5) it comes from, and learn the specific rule.
This guide does that, topic by topic. For the exam format, scoring and test-day rules, start with our PSI exam guide.
Where does each NJ topic come from?
| Outline area (salesperson items) | Main source to read |
|---|---|
| Licensing Requirements (3) | N.J.S.A. 45:15-1 and 45:15-3 |
| Duties and Powers of the Commission (2) | N.J.S.A. 45:15-17; N.J.A.C. 11:5-5.5 |
| Statutes and Rules Governing Licensee Activities (22) | N.J.A.C. 11:5 subchapters 4, 5 and 6; N.J.S.A. 45:15-16 and 45:15-17 |
| Additional Requirements (3) | NJREC's description of the laws it enforces (About NJREC); N.J.A.C. 11:5-6.4 |
What should you know for Licensing Requirements?
The outline lists two topics: activities requiring a license and types of licenses. No one may act or advertise as a broker, broker-salesperson or salesperson without a license (N.J.S.A. 45:15-1). The definitions statute lists the activities (selling, buying, negotiating, leasing, collecting rents, soliciting buyers or tenants, for others and for pay) and the license types: broker, broker-salesperson, salesperson, and salesperson licensed with a referral company (N.J.S.A. 45:15-3).
Study move: practice saying whether a described activity needs a license, and which license.
What should you know about the Commission's duties and powers?
Two topics: maintenance of records and sanctions.
- Records: licensees must make transaction records, books and documents available to the Commission for inspection. The Commission can issue subpoenas, administer oaths and hold hearings. Transaction and listing files stay at the broker's office when a salesperson leaves (N.J.A.C. 11:5-5.5).
- Sanctions: the Commission can impose probation, suspension, revocation and penalties of up to $5,000 for a first violation and $10,000 for later ones (N.J.S.A. 45:15-17).
Our Real Estate Commission guide covers the Commission's structure.
How do you study the 22 Statutes and Rules items?
The outline names 13 topics without item counts per topic. Here's the section to read for each and one rule worth knowing cold:
| # | Outline topic | Read | One rule to know |
|---|---|---|---|
| 1 | Advertising | N.J.A.C. 11:5-6.1 | Ads that mention a commission rate must say "In New Jersey commissions are negotiable" (6.1(q)) |
| 2 | Broker/Salesperson Relationships | N.J.A.C. 11:5-4.1 | A signed written agreement with the broker is required before any brokerage activity (4.1(a)) |
| 3 | Commissions and Required Accounting | N.J.A.C. 11:5-4.1; N.J.S.A. 45:15-16 | The broker pays the salesperson's share within 10 business days of receipt unless the agreement sets another schedule |
| 4 | Agency/Conflicts of Interest/Disclosure | N.J.A.C. 11:5-6.9 | The Consumer Information Statement and its timing |
| 5 | Contracts and Other Documents | N.J.A.C. 11:5-6.2 | Attorney review: three business days from delivery (6.2(g)) |
| 6 | Trust Fund Requirements | N.J.A.C. 11:5-5.1 | Deposit "promptly" means within five business days |
| 7 | Listings and Content of Listing Agreements | N.J.S.A. 45:15-17(f) | A listing needs a definite end date, and the client gets a fully executed copy at signing |
| 8 | Place of Business | N.J.A.C. 11:5-4.4 | A resident broker keeps a NJ main office, open to the public, under full-time supervision |
| 9 | Records, including Escrow Bookkeeping | N.J.A.C. 11:5-5.4 | Records of others' funds kept at least six years; escrow withdrawals by check to a named payee or bank transfer, never to cash |
| 10 | Inducements | N.J.A.C. 11:5-6.1(m) | Offers worth over $1,000 retail need a written disclosure; no lotteries, contests, games or drawings |
| 11 | Offering Buyer Rebates | Your course materials | Listed in the outline; learn it from the rule section your instructor assigns |
| 12 | Responsibility to Public and Other Licensees | N.J.A.C. 11:5-6.4 | Written offers go to the owner within 24 hours |
| 13 | Other Laws and Regulations | Outline list | Know what each named law covers at a basic level |
Agency and contracts also have their own national sections. Our pages on agency on the NJ exam and contracts on the NJ exam go deeper on both.
For topic 13, the outline names nine laws: the Farmland Reassessment Act (as printed), the Pinelands Protection Act of 1979, the Realty Transfer Fee, Mount Laurel requirements, zoning and building codes, the Municipal Land Use Law, the real estate transfer tax, the Truth in Renting Act, and the Freshwater Wetlands Protection Act of 1987 (PSI bulletin).
What's in Additional Requirements?
Three items drawn from four laws (PSI bulletin):
- Real Estate Sales Full Disclosure Act: the Commission enforces it for out-of-state and foreign property marketed in New Jersey (About NJREC).
- NJ Law Against Discrimination: licensees give owners a summary of the LAD when taking a residential listing, and can't deny services on protected grounds, including source of lawful income (N.J.A.C. 11:5-6.4(j)–(k)).
- Real Estate Guaranty Fund: run by the Commission and funded by licensee and applicant assessments, not tax dollars (About NJREC). $10 of the initial $160 salesperson license fee goes to it (NJREC fees).
- NJ Real Estate Time Share Act: listed in the outline; study it from your course materials.
Which NJ numbers should you memorize?
| Number | Rule | Source |
|---|---|---|
| 24 hours | Written offers to the owner | N.J.A.C. 11:5-6.4 |
| 48 hours | Listing broker notifies the MLS of a new listing | N.J.A.C. 11:5-6.4 |
| 3 business days | Attorney review period | N.J.A.C. 11:5-6.2(g) |
| 5 business days | Depositing others' money "promptly" | N.J.A.C. 11:5-5.1 |
| 10 business days | Broker pays salesperson's commission share | N.J.A.C. 11:5-4.1 |
| 30 days | Licensee reports an arrest, indictment or conviction | N.J.S.A. 45:15-17(s) |
| 6 years | Broker keeps records of others' funds | N.J.A.C. 11:5-5.4 |
| $5,000 / $10,000 | Maximum penalty, first / later violation | N.J.S.A. 45:15-17 |
How should you study the state section?
- Read the rule, not a summary. Open each section linked above. Exam questions often turn on one word, such as "business days."
- Turn each rule into a question. "How long does a broker have to deposit an earnest money check?"
- Drill the numbers table until you can fill it in from memory.
- Take timed practice tests, then return to the rule behind every miss. A set of NJ practice exams is one way to do this.
- Use your diagnostic. If you don't pass, PSI's score report breaks results down by topic (PSI bulletin).
The bulletin lists one passing score for the salesperson exam: 70% (77 correct). If you have questions about how the state items are scored, ask PSI directly.
This page is general information, not legal advice. If you haven't started yet, Business Elementary's 75-hour pre-licensing course teaches these rules before you sit for the exam.
Sources
- PSI, NJ Candidate Information Bulletin (updated 2/1/2026), New Jersey content outline and examination summary: https://test-takers.psiexams.com/api/content/bulletin/1667
- N.J.S.A. 45:15-1, 45:15-3, 45:15-16 and 45:15-17 (via Justia): https://law.justia.com/codes/new-jersey/title-45/section-45-15-1/ ; https://law.justia.com/codes/new-jersey/title-45/section-45-15-3/ ; https://law.justia.com/codes/new-jersey/title-45/section-45-15-16/ ; https://law.justia.com/codes/new-jersey/title-45/section-45-15-17/
- N.J.A.C. 11:5-4.1 and 11:5-4.4 (via Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-4-1 ; https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-4-4
- N.J.A.C. 11:5-5.1, 11:5-5.4 and 11:5-5.5 (via Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-5-1 ; https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-5-4 ; https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-5-5
- N.J.A.C. 11:5-6.1, 6.2, 6.4 and 6.9 (via Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-1 ; https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-2 ; https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-4 ; https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-9
- NJREC, About the Commission: https://www.nj.gov/dobi/division_rec/reabout.html
- NJREC, Real Estate License Fees: https://www.nj.gov/dobi/division_rec/licensing/recfees.htm
Last reviewed: October 27, 2026
Related guides:
- Studying the LAD item? The NJ Law Against Discrimination for Real Estate Agents compares NJ's protected classes with federal law and explains the listing notice, exemptions and complaints.
Frequently Asked Questions
How many New Jersey law items are on the salesperson exam?
The bulletin's NJ outline lists 30 salesperson items: 2 on the Commission's duties and powers, 3 on licensing requirements, 22 on statutes and rules, and 3 on additional requirements (PSI bulletin).
Which NJ rule covers real estate advertising?
N.J.A.C. 11:5-6.1. It covers broker names in ads, phone numbers, "sold" signs, CMA statements and the "commissions are negotiable" statement (N.J.A.C. 11:5-6.1).
How long must a NJ broker keep escrow records?
At least six years from the date the funds were received (N.J.A.C. 11:5-5.4(a)).
Can a salesperson take files when changing brokers?
No. Transaction, listing and property-management files stay at the broker's office (N.J.A.C. 11:5-5.5(c)).
What laws are in the "Additional Requirements" section?
The Real Estate Sales Full Disclosure Act, the NJ Law Against Discrimination, the Real Estate Guaranty Fund and the NJ Real Estate Time Share Act (PSI bulletin).