New Jersey Real Estate License Exam: Cheat Sheet

Looking for a fast way to get up to speed on the New Jersey Real Estate Licensing Exam? Use our summary outline of key real estate concepts to guide your study time and succeed with your test:

• Licensing Requirements

Minimum age: 18 years

• High school diploma or GED

• Complete 75-hour pre-licensing course

• Pass state licensing exam

• Submit application and fee

• Complete background check and fingerprinting

• Property Ownership

Freehold Estates: Fee Simple Absolute, Fee Simple Defeasible, Life Estate

• Leasehold Estates: Estate for Years, Periodic Tenancy, Tenancy at Will, Tenancy at Sufferance

• Forms of Co-ownership: Tenancy in Common, Joint Tenancy, Tenancy by the Entirety, Condominiums, Cooperatives

• Land Use Controls and Regulations

Zoning: Residential, Commercial, Industrial, Agricultural

• Building Codes and Permits

• Eminent Domain and Condemnation

• Environmental Regulations: Wetlands, Flood Zones, Lead-Based Paint, Asbestos, Radon

• Contract Law

Types of Contracts: Express, Implied, Unilateral, Bilateral, Executory, Executed

• Contract Essentials: Offer, Acceptance, Consideration, Legality, Capacity, Consent

• Termination of Contracts: Performance, Breach, Mutual Agreement, Operation of Law

• Real Estate Contracts: Listing Agreements, Buyer Representation Agreements, Purchase Agreements, Option Agreements, Leases

• Real Estate Agency

Types of Agency: Seller representation, Buyer representation, Dual representation

• Agent’s Duties: Loyalty, Obedience, Disclosure, Confidentiality, Accountability, Skill and Care

• Disclosure Requirements: Agency Relationships, Material Defects, Lead-Based Paint, Flood Zones

• Termination of Agency: Performance, Expiration, Mutual Agreement, Breach, Operation of Law

• Real Estate Finance

Types of Mortgages: Conventional, FHA, VA, Adjustable-Rate, Fixed-Rate

• Mortgage Concepts: Loan-to-Value Ratio (LTV), Points, Amortization, Private Mortgage Insurance (PMI)

• Foreclosure Process: Default, Pre-foreclosure, Auction, REO

• Government Programs: FHA, VA, USDA

• Appraisal and Valuation

Appraisal Principles: Highest and Best Use, Principle of Substitution, Principle of Anticipation

• Approaches to Value: Sales Comparison, Replacement Cost, Income Capitalization

• Adjustments and Reconciliation

• Appraisal Report Formats: Uniform Residential Appraisal Report (URAR), Narrative, Form Reports

• Closing and Settlement

Prorations: Taxes, Rents, Insurance, Interest

• Closing Disclosures and Settlement Statements

• Transfer of Title: Deed Preparation, Recording, Title Insurance

• Closing Costs: Loan Fees, Title Fees, Recording Fees, Tax Prorations, Insurance Premiums

• New Jersey Real Estate Laws and Regulations

New Jersey Real Estate Commission (NJREC)

• Licensing and Continuing Education Requirements

• Trust Accounts and Recordkeeping

• Disciplinary Actions and Penalties

Consult your textbook for definitions of these real estate concepts. We also have resources on our website if you prefer staying online.

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