The New Jersey real estate salesperson exam is a significant hurdle for most license candidates.
According to PSI Services, LLC, the pass rate on the New Jersey real estate salesperson license exam was only 25% of the 1,800 candidates who took the exam in January, 2021. Since that time, PSI Services, Inc has stopped reporting its pass rate.
There are several reasons the pass rate is as low as it is. First, the material covered on the test falls well outside the experience of most candidates.
The exam covers overwhelming amount of information including contract law, license law, valuation and mortgage finance. While none of the material is difficult to understand, the sheer volume makes the material hard to retain and apply without diligent study. The material is easily forgotten in a short period of time.
The 110 question test consists of 80 general real estate questions and 30 questions regarding NJ license law, the rules of the NJ Real Estate Commission, the law of agency and fair housing laws. The passing score for the state exam is 70% (77 correct answers out of the 110 questions).
PSI presents the questions in a manner that is confusing and hard to understand. Application of the information is tested rather than a simple recall of terms and concepts. Many students are simply not ready to make the critical differentiations necessary to pass the exam.
In order to pass the exam, students need to master the key concepts covered in the course and build skills in fielding multiple choice questions of the type on the state exam.