The Real Estate Consumer Protection Enhancement Act aims to improve consumer protections in real estate transactions in New Jersey by establishing clear definitions and responsibilities for brokerage firms, agents, and their relationships with buyers and sellers. The bill introduces key terms such as "agency relationship," "brokerage services agreement," "buyers agent," and "sellers agent," which are designed to clarify the expectations of all parties involved. It mandates that brokerage firms must act honestly, present all offers promptly, and provide necessary disclosures regarding agency relationships and compensation. Additionally, the legislation requires written brokerage services agreements for residential transactions, outlining the terms of the relationship, agency nature, and compensation structure.

The bill also addresses dual agency, requiring informed consent from both parties and specifying the duties of agents, including loyalty and timely conflict disclosure. It clarifies the roles of transaction brokers and designated agents, emphasizing confidentiality and impartiality. Furthermore, it mandates that a sign be posted at public open houses to inform prospective buyers of the hosting agent's representation of the seller. The legislation amends continuing education requirements for real estate licensees to include agency training and allows the New Jersey Real Estate Commission to create regulations for various agency relationships. These new provisions are set to take effect on August 1, 2024.

Statutes affected:
Introduced: 45:15-16.2