The Real Estate Consumer Protection Enhancement Act introduces comprehensive changes to the regulation of real estate transactions in New Jersey, focusing on enhancing consumer protections and clarifying the roles of real estate professionals. The bill establishes new definitions for key terms such as "agency relationship," "brokerage firm," "buyers agent," and "sellers agent," which delineate the responsibilities of these professionals. It mandates that brokerage firms must enter into a brokerage services agreement with sellers before providing services, outlining the relationship's terms, agency status, and the seller's consent regarding dual agency. Additionally, the bill emphasizes the importance of transparency by requiring brokerage firms to disclose their agency relationships and compensation terms to all parties involved.

Moreover, the legislation amends existing continuing education requirements for real estate licensees, mandating at least one hour of agency training during each biennial license renewal period. It also clarifies that a principal will not be held accountable for knowledge of facts known by their brokerage firm unless those facts are also known by the principal. The act aims to take effect on August 1, 2024, and seeks to ensure that consumers are well-informed throughout the transaction process while reinforcing ethical standards and proper representation for buyers and sellers.

Statutes affected:
Introduced: 45:15-16.2