New Jersey Realtors® commends the signing of the Real Estate Consumer Protection Enhancement Act into law today by Gov. Phil Murphy. New Jersey Realtors® worked with the sponsors of Bill S3192/A4454—Sen. Patrick Diegnan and Asm. Roy Freiman—to craft this legislation, which will enhance transaction transparency and further protect consumers throughout the state.
The law, which will go into effect on Aug. 1, strengthens both consumer and real estate licensee protections.
The following are the six major changes the law provides for:
- Sellers must provide a fully completed property condition disclosure form before buyers sign a contract.
- Listing agents will be required to explicitly disclose who they represent at open houses.
- Designated agency, which enables a brokerage to appoint an agent to either side of a transaction at the client’s request, is now permissible.
- 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.
- Sellers’ agents can no longer disclose compensation in Multiple Listing Services (MLSs) or notify MLSs about cooperative compensation.
- Continuing education classes on agency are now required.
NJ Realtors® is looking at all forms and contracts to ensure they conform with the new statute.
Stay tuned to NCJAR for upcoming training sessions and further updates.
