The bill P.L.2024, c.32 establishes a comprehensive framework for real estate brokerage services in New Jersey, defining the roles and responsibilities of brokerage firms, agents, and principals in real estate transactions. It introduces key definitions such as "agency relationship" and "brokerage services agreement," and mandates that brokerage firms comply with agency laws, exercise reasonable skill and care, and provide timely disclosures. The legislation emphasizes the importance of confidentiality and requires signed agreements with buyers and sellers before services commence. It also outlines conditions for dual agency and transaction broker roles, ensuring transparency regarding agency relationships and compensation terms.

Additionally, the bill amends existing real estate laws, clarifying the liability of brokerage firms and the responsibilities of principals and agents. It allows brokerage firms to receive compensation for certain services without a formal agreement, limits a principal's liability to the benefits received, and establishes disclosure responsibilities for brokerage firms regarding property conditions. The bill mandates public signage at residential property showings to inform buyers of the agent's representation and requires the New Jersey Real Estate Commission to create supporting regulations. It also updates continuing education requirements for real estate professionals, focusing on essential topics such as agency and disclosure, with the act 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