If you’d like to become a real estate agent in New Jersey, it helps to understand everything involved before you start the process. Here, we’ll cover the benefits of the profession as well as everything that is required to receive your license.
There are a number of steps in the New Jersey real estate licensing process, so we’ve broken it down to keep things simple. To get your license, you will need to:
Step 1: Complete Pre-License Education
Step 2: Pass the Course Final Exam
Step 3: Register for the New Jersey Real Estate Exam
Step 4: Pass the New Jersey Real Estate Exam
Step 5: Complete a Background Check (fingerprinting)
Step 6: Secure a Sponsoring agent
Step 7: Submit a Real Estate License Application
Before we move on to the steps to get your license, consider if becoming a New Jersey real estate agent is right for you.
The Benefits of Working as a New Jersey Real Estate agent
At salary.com, the average salary for a real estate agent in New Jersey is listed as $57,537 to $81,600 per year. This varies depending on your commission percentage, the number of homes you sell, if you have any caps, what your split is with your agent, and the value of the homes sold.
In New Jersey, the average price of a home is $461,990. Real estate agents often make 5% commission on sales, which would be $23,100.
Salary aside, becoming a real estate agent includes these other benefits:
- Flexibility in your schedule
- Unlimited income potential
- Career mobility
- Helping people
- Familiarity with your community and neighborhoods
- Varying environments and tasks
If this sounds like a good fit for you, these are the things you should consider next.
Do You Prequalify?
To prequalify as a New Jersey real estate agent you need to:
- Be at least 18-years old
- Be a US citizen or permanent resident alien
- Have a high school education or its equivalent
1. Complete Pre-License Education
To qualify as a real estate agent in New Jersey, you need to complete a 75-hour pre-license education course that is approved by the New Jersey Real Estate Commission. The course can be taken in a live classroom or online, as long as it’s on the approved list of schools. You can find some course options on the Department of State website.
If you have a university degree with a major course study in real estate, or have a current real estate license from another state and are seeking licensure in New Jersey, see the Department of State Division of Licensing website for the education and examination requirements in your specific case.
The pre-licensing education covers these (and other) topics:
- Licensing laws
- Real estate practice
- Forms of ownership, transfer, and recording of title
- Financing and settlement
- Closing
In New Jersey, the course completion is valid for 8 years, and will need to be used to obtain a license within that time.
2. Pass the course final exam
Once you finish the course, you will need to take a final course exam within one year. You need to get a score of at least 70% to pass.
3. Register For the New Jersey Real Estate Licensing Exam
After completing the course and its exam, you’ll be ready to register for the New Jersey Real Estate Salesperson Exam. This one is administered by PSI, an outside examination agency.
Your pre-licensing course provider will electronically submit your license application eligibility to PSI once you complete the course. After you get an emailed confirmation from PSI that they have received this, you can go to www.psiexams.com or call 1(855) 579-4634 to register and schedule for your exam. If you find that they do not have your record, you should contact your education provider.
The easiest way to schedule your exam is on the PSI website. For step-by-step instructions, see the PSI brochure here. The exam fee is $38.
For the exam, you can choose to test at a PSI test site, or you can take a remotely proctored exam online from a computer at a remote location.
You can find additional information about this process on their website at dobj.nj.gov.
4. Pass the New Jersey Real Estate Licensing Exam
On the day of the exam, you will need to bring two (2) forms of ID (see here for accepted types of ID).
Once you’re in the exam site, you will need to place all electronic devices, bulky clothing, and other personal items in a secure location. You will then sit at a computer to take the test.
The exam has to be completed in 4 hours, and it includes 110 questions. To pass you need a score of at least 70%. Your exam score will appear on your screen when you are finished, and a score report will be emailed to you.
Some of the topics covered in the exam are:
- Real estate practice
- Contracts
- Property ownership
- Leasing and property management
- Transfer of title
- Valuation and market analysis
- Financing
- Real estate calculations
5. Complete a Background Check (fingerprinting)
All New Jersey real estate agent candidates have one year from the completion date of their pre-license education to file a fully completed application with the Licensing Services Bureau. In order to avoid problems with the expiration of your one year of eligibility for licensure, you must complete the fingerprinting process as soon as possible after passing the State examination.
To schedule a fingerprinting appointment:
- Make sure that you complete the correct Universal Form(IDG_NJAPP_051719_V1) by identifying the license type in section #4 on the form.
- Once the Universal form is completed, use this page to schedule an appointment. Do not discard the Universal form as it will need to be presented at your scheduled appointment.
As evidence of your completed fingerprinting, you will need to include these items with your license application:
- a copy of your completed Universal Form (IDG_NJAPP_051719_V1); and
- a copy of the payment receipt issued by IDEMIA, the Live Scan fingerprint vendor, at the time of completion of the fingerprinting.
There is a $66.05 fee for the fingerprinting/criminal history record check; payment is required when you schedule your appointment.
6. Secure a Sponsoring Broker
To become a licensed and practicing real estate agent in New Jersey, you need to be associated with a registered brokerage firm or broker. Before submitting your application, you’ll need to have secured this sponsorship. It’s important to choose the right broker, as they’ll play a key role in growing your real estate career.
Consider the following when choosing a managing agent to work with:
- Their reputation as a agent or agentage firm
- The types of agents they look for
- If they provide education and training for agents
- If they provide marketing materials and potential leads
- Which systems they use
- The benefits they offer
- What is their commission structure?
- What is the growth potential?
7. Submit a Real Estate License Application
Upon completing and passing your exam at the testing center and securing a sponsoring broker, you can submit your license application to the Licensing Services Bureau.
You can view these instructions for how to complete your application.
To be accepted, your fully completed application must be sent with the license fee of $160 and evidence of the completion of the fingerprinting process.
You will be notified by the Real Estate Commission once your application has been approved or denied or if any additional information is needed by the Department.
Once you’ve completed all of these steps successfully, you will receive your New Jersey Real Estate agent License by mail. At this point, you might want to consider if you’re interested in becoming a Realtor. Here’s what this means:
Real Estate Agent vs Realtor: What’s the difference?
For a real estate agent to become a Realtor, they need to become a member of the National Association of Realtors®. The NAR is an organization for real estate agents and other industry professionals. Members are required to subscribe to standards and a code of ethics set by the association. Membership offers access to market data and transaction management services, and other benefits.
To become a part of this community, these are the steps you need to take:
- Get your state real estate license
- Join your local REALTORS® Association – find one close to you with their “find an association” tool
- Pay the application fee – this varies by association
- Maintain membership dues – to keep your title of REALTOR®, you need to pay an annual fee of $150
Become a top Real Estate Agent!
Now that you’re a Real Estate Agent. You’ll need a website to show off your listings, attract buyers and sellers and if your ambitious get real estate coaching or digital marketing from some of the best in the field. Reach out to us at RE Digital to learn how we can help you become a top performer.
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