The NJ Real Estate Commission announces crucial updates to the Real Estate Broker and Salesperson Act. Stay informed about changes in business relationships, agency rules, and new continuing education requirements. NCJAR members, read the bulletin to stay compliant and informed.
The New Jersey Real Estate Commission has implemented significant changes to the Real Estate Broker and Salesperson Act under P.L. 2024, c.32. These updates are crucial for all NJ real estate professionals. Here's a breakdown of the top 10 things you need to know:
-
Designated Agency Introduction: A new type of agency relationship called "Designated Agency" has been introduced, affecting how brokers represent clients in transactions.
-
Consumer Information Statement (CIS): The CIS now includes information on designated agency relationships. It's mandatory for all brokerage firms to provide this updated CIS to clients and obtain a signed acknowledgment.
-
Brokerage Service Agreements (BSA): All residential real estate transactions now require a written BSA, clearly outlining the business relationship and compensation details.
-
Property Condition Disclosure Statement: Brokers must obtain a signed disclosure statement from sellers, ensuring buyers are fully informed about the property's condition.
-
Broker Compensation: The act allows brokers to receive compensation from multiple parties in a transaction, with clear consent required for dual agency situations.
-
Signage at Showings: New regulations require specific signage at all residential property showings, clearly communicating the agent's representation.
-
New Continuing Education Requirement: Licensees must complete at least one CE course on the topic of "agency" to meet the new requirements for license renewal.
-
Fiduciary Duties Clarified: The law outlines specific duties for brokers, including loyalty, confidentiality, and full disclosure of material information.
-
Transaction Broker Role: Clear guidelines are established for transaction brokers, who facilitate transactions without creating an agency relationship.
-
Compliance Deadline: The new regulations take effect on August 1, 2024. It's essential to understand and comply with these changes to avoid any legal or professional issues.
Action Required: All NCJAR members should read the full bulletin to ensure they understand and implement these changes in their business practices. Staying informed and compliant is critical for maintaining professionalism and protecting your license.
Questions? Contact NCJAR for further clarification or assistance.
