Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Senator PAUL D. MORIARTY
District 4 (Atlantic, Camden and Gloucester)
Co-Sponsored by:
Senator Turner
SYNOPSIS
Real Estate Consumer Protection Enhancement Act.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning consumer rights in certain real estate transactions and amending P.L.2009, c.238 and supplementing chapter 8 of Title 56 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
Agency relationship means the agency relationship created under P.L. , c. (C. ) (pending before the Legislature as this bill) between a real estate brokerage firm and a principal relating to the performance of real estate brokerage services.
Agent means a real estate brokerage firm, including affiliated brokers, broker-salespersons and salespersons who are duly licensed under P.L. , c. (C. ) (pending before the Legislature as this bill), that has an agency relationship with a principal.
Brokerage firm means a real estate brokerage firm, including real estate brokers, real estate broker-salespersons and real estate salespersons licensed or otherwise authorized to provide brokerage services in this State pursuant to chapter 15 of Title 45 of the Revised Statutes who are affiliated with the brokerage firm, unless the context requires the terms to be considered separately. In accordance with section 2 of P.L.1989, c.239 (C.45:15-16.28), broker also includes any broker, broker-salesperson or salesperson who performs within this State as an agent or employee of a subdivider any one or more of the services or acts as set forth in chapter 15 of Title 45 of the Revised Statutes.
Brokerage services means the rendering of services for which a real estate license is required under chapter 15 of Title 45 of the Revised Statutes.
Brokerage services agreement means a written agreement between a brokerage firm and principal that appoints a brokerage firm to represent the principal as an agent or work with a buyer or seller as a transaction broker. Broker services agreements include, but are not limited to, sale and rental listing agreements; buyer-lessee agency agreements; and transaction broker, dual agency and designated agency agreements.
Buyer means an actual or prospective purchaser in a real estate transaction, or an actual or prospective tenant in a real estate rental or lease transaction, as applicable.
Buyers agent means a brokerage firm, including brokers, broker-salespersons and salespersons affiliated with the brokerage firm, that has an agency relationship and works only with the buyer in a real estate transaction, and to whom the brokerage firm and its brokers, broker-salespersons and salespersons owe fiduciary duties.
Commercial real estate means a fee title interest, possessory estate, or lease in real property located in the State of New Jersey, other than an interest in real property that is:
(1) improved with one single-family residential unit or one multifamily structure with four or fewer residential units;
(2) unimproved and the maximum permitted development is one to four residential units or structures under applicable zoning regulations;
(3) classified as farmland, timberland or other agricultural land for real estate tax assessment purposes;
(4) improved with single-family residential units, such as condominiums, townhouses, timeshares, or stand-alone houses in a subdivision that may be legally sold, leased or otherwise disposed of on a unit-by-unit basis;
(5) subject to an agreement that provides that the real estate should be considered residential; or
(6) within the definition in this section as of the date of its disposition.
Confidential information means information from or concerning a principal that, unless required to be disclosed by the brokerage firm pursuant to applicable law:
(1) is acquired by the brokerage firm during the course of an agency relationship with the principal;
(2) is information that, as advised by the principal to the brokerage firm, the principal reasonably expects to be kept confidential or that the brokerage firm otherwise knows is confidential;
(3) would, if disclosed, operate to the detriment of the principal, except that the information may be disclosed if authorized by the principal; and
(4) the principal personally would not be obligated to disclose to the other party.
Designated agent means, in any transaction where the buyers agent and the sellers agent are affiliated with the same brokerage firm or are the same broker, broker-salesperson or salesperson, the broker, broker-salesperson or salesperson who has been designated by the brokerage firm, including but not limited to by a broker or managing broker of the brokerage firm, to solely represent the buyer as the buyers agent and another broker, broker-salesperson or salesperson who has been designated by the brokerage firm, including but not limited to a broker or managing broker of the brokerage firm, to solely represent the seller as the sellers agent in a particular real estate transaction.
Disclosed dual agent means a brokerage firm, including brokers, broker-salespersons and salespersons affiliated with the brokerage firm, that has an agency relationship and is working for both the buyer and seller in the same transaction.
Material information means the existence or non-existence of information:
(1) to which a reasonable person would attach importance in deciding whether or how to proceed with a transaction; or
(2) that the agent knows or has reason to know that the recipient of the information regards or is likely to regard as important in deciding whether or how to proceed, although a reasonable person would not so regard it.
Principal means a buyer or a seller who has an agency relationship with a brokerage firm.
Real estate transaction or transaction means an actual or prospective transaction involving a purchase, sale, option, or exchange