The bill introduces new definitions and regulations for real estate brokerage firms in New Jersey, establishing terms such as "agency relationship," "brokerage services agreement," "buyers agent," and "sellers agent." It mandates that brokerage firms must enter into written agreements with buyers and sellers before providing services, ensuring clarity regarding rights and obligations. The bill outlines the duties of brokerage firms to their principals, including compliance with agency laws, timely communication of offers, and the handling of confidential information. It also specifies the conditions under which a brokerage firm can act as a buyer's agent, seller's agent, disclosed dual agent, or transaction broker, emphasizing the importance of loyalty to clients and the disclosure of potential conflicts of interest.

Additionally, the bill amends existing real estate laws to clarify the liability of brokerage firms and the responsibilities of principals. It allows brokerage firms to receive compensation for certain services without a formal brokerage services agreement, provided they did not offer real estate brokerage services in the transaction. The bill also states that a principal is not liable for the actions of their agent unless they authorized those actions. It requires that at residential property showings open to the public, a sign must inform prospective buyers that the hosting brokerage firm represents the seller only. The New Jersey Real Estate Commission is tasked with creating regulations to support the bill's objectives, and 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