Real Estate Consumer Protection Enhancement Act

The state of New Jersey passed into law new regulations in response to the NAR settlement, effective August 1, several weeks ahead of the August 17 national deadline.

Below is a synopsis of the new requirements taken from the NJ Association of Realtors site.

Please reach out if you have questions. Best, Rich

Brokerage Service Agreements Required
All real estate licensees will be required to use brokerage agreements, which outline services they will provide to all clients over the course of a respective transaction.

Designated Agency Now Allowed
Designated agency, which enables a brokerage to appoint different agents to represent both the seller and the buyer with full fiduciary duties at the client’s request, is now permissible.

Signage Required at Open Houses
Listing agents will be required to explicitly disclose who they represent at open houses in the form of signaListing agents will be required to explicitly disclose who they represent at open houses in the form of signage either at the entrance or sign-in sheet for all attendees

Seller’s Property Condition Disclosure Statement Now Required
Sellers must provide a fully completed property condition disclosure statement before buyers are contractually obligated. This ensures buyers have all the necessary information, promoting informed decision-making and reducing potential disputes.

Compensation Disclosure Changes in Multiple Listing Services
Sellers’ agents can no longer disclose compensation in Multiple Listing Services or notify MLSs about cooperative compensation, if prohibited by MLS policy.