The bill P.L.2024, c.32 establishes a comprehensive framework for real estate brokerage services in New Jersey, defining key terms such as "agency relationship" and "brokerage services agreement." It mandates that brokerage firms must enter into written agreements with buyers and sellers before providing services, detailing the nature of the agency relationship, compensation, and confidentiality. The legislation emphasizes the responsibilities of brokerage firms acting as buyers' or sellers' agents, including loyalty to clients, timely disclosure of conflicts of interest, and the handling of confidential information. Additionally, it clarifies the role of transaction brokers, who cannot act as agents for any party, and outlines the conditions for terminating agency relationships while maintaining obligations such as confidentiality.

The bill also introduces amendments to existing real estate laws, focusing on the liability of brokerage firms and the responsibilities of principals. It allows brokerage firms to receive compensation for certain services without a formal agreement, provided they did not offer brokerage services in the transaction. Furthermore, it specifies that principals are not liable for unauthorized actions of their agents and outlines the conditions under which brokerage firms are not liable for information disclosed by sellers. The legislation requires public signage at residential property showings to inform buyers of the brokerage's representation and empowers the New Jersey Real Estate Commission to create regulations for implementation, including continuing education requirements for real estate professionals. The act is set to take effect on August 1, 2024.

Statutes affected:
Introduced: 45:15-16.2
Advance Law: 45:15-16.2
Pamphlet Law: 45:15-16.2