In July 2024, Governor Phil Murphy signed the Real Estate Consumer Protection Enhancement Act (RECPEA) into law, marking a significant shift in how real estate transactions are conducted in New Jersey. This important legislation, which took effect on August 1, 2024, enhances protections for both consumers and real estate professionals, prioritizing transparency and accountability in our industry.
To help our members stay compliant and informed, here are the top six updates every NCJAR REALTOR® should know:
1. Seller’s Property Condition Disclosure Statement Now Required
Sellers of residential properties are now required to provide a fully completed property condition disclosure statement before buyers become contractually obligated. This promotes transparency, enables informed decision-making, and helps reduce the risk of future disputes. Ensuring this document is completed and delivered on time is now a non-negotiable part of every residential listing.
2. Brokerage Service Agreements Are Mandatory
All real estate licensees must now utilize brokerage service agreements for every client. These agreements clearly outline the services to be provided throughout a transaction, strengthening the understanding between clients and REALTORS®. To support you, a full suite of updated and compliant forms is available at
njrealtor.com/zipform
3. Designated Agency Is Now Permitted
Good news for brokerages: designated agency is now officially allowed. This model enables a brokerage to assign different agents to represent the buyer and seller in the same transaction, each with full fiduciary duties—provided the client agrees. For those looking to get up to speed, a free class titled “Agency and RECPEA” is available at
njrealtorsace.com
4. Agency Now a Required Core CE Topic
To keep licensees up-to-date and well-informed, a course on agency has been added as a required core topic in the New Jersey Real Estate Commission’s continuing education curriculum for the 2025 CE Term. This addition ensures REALTORS® have a strong understanding of agency relationships and responsibilities, reinforcing consumer trust.
5. Open House Representation Signage Is Mandatory
During open houses, listing agents must now clearly disclose whom they represent using signage placed at the entrance or on the sign-in sheet. This requirement is intended to eliminate confusion for attendees about agency relationships. A free, printable version of this sign can be found at
njrealtor.com/cpea
6. Changes to Compensation Disclosures in the MLS
Finally, under the new law, sellers’ agents can no longer disclose or notify Multiple Listing Services (MLSs) about cooperative compensation if doing so is prohibited by MLS policy. This change aligns with recent shifts in the industry toward clearer, more consumer-focused practices.
Stay Informed & Stay Compliant
This legislation represents a significant step forward for both consumer protection and the professionalism of our industry. NCJAR members are encouraged to review the full suite of updated forms and take advantage of the free training resources available online.
For additional details and to access helpful tools, visit:
Have questions about how these changes affect your business? Reach out to NCJAR support or attend one of our upcoming info sessions. We're here to help you navigate this new era of real estate in New Jersey.
