The New Jersey Real Estate Consumer Protection Enhancement Act
New Jersey Governor Phil Murphy has signed Bill S3192/A4454 into law, officially known as the Real Estate Consumer Protection Enhancement Act. This new law, which takes effect on August 1, 2024, is designed to enhance transparency in real estate transactions and provide greater protection for consumers across the state. Here’s what you need to know about the six major changes this law brings:
Property Condition Disclosure:
Sellers are now required to provide a fully completed property condition disclosure form before buyers sign a contract. This ensures that buyers have all the necessary information about the property’s condition upfront.
Agent Representation Disclosure:
Listing agents must explicitly disclose who they represent at open houses. This clarity helps buyers understand the agent’s role and for whom they are advocating in the transaction.
Designated Agency:
The new law allows for designated agency, meaning a brokerage can appoint an agent to represent either side of a transaction at the client’s request. This flexibility benefits both buyers and sellers.
Brokerage Agreements:
All real estate licensees will now be required to use brokerage agreements when working with buyers. These agreements outline the services that will be provided to clients throughout the transaction, ensuring a clear understanding of expectations and responsibilities.
Compensation Disclosure in MLS:
Sellers’ agents can no longer disclose compensation in Multiple Listing Services (MLSs) or notify MLSs about cooperative compensation. This change aims to reduce conflicts of interest and enhance fairness in transactions.
Continuing Education:
Continuing education classes on agency are now mandatory for all real estate professionals. This requirement ensures that agents stay updated on best practices and maintain a high standard of service for their clients.
At Century 21 Christel Realty, we are committed to embracing these changes to provide you with the best possible service. Our team is here to guide you through every step of your real estate journey with the enhanced protections and transparency this new law offers.
For more information or if you have any questions, please feel free to contact us.
