The Real Estate Consumer Protection Enhancement Act introduces new definitions and clarifications regarding agency relationships in real estate transactions in New Jersey. It establishes terms such as "agency relationship," "brokerage firm," "buyers agent," and "sellers agent," defining the roles and responsibilities of real estate professionals. The bill mandates that brokerage firms owe specific duties to their principals, including timely presentation of all offers, necessary disclosures, and confidentiality of information. It also requires brokerage services agreements to be established between the brokerage firm and the buyer or seller before services commence, particularly in residential transactions. Additionally, the bill emphasizes transparency by requiring brokerage firms to disclose their agency roles and any potential conflicts of interest.

The legislation further outlines the requirements for brokerage services agreements, specifying that they must detail the term of the agreement, the nature of the agency relationship, and the firm's compensation structure. It allows for dual agency relationships with written consent from both parties and clarifies the responsibilities of transaction brokers. The bill also introduces provisions regarding compensation, limiting the liability of principals for their agents' actions unless they authorized them. It amends continuing education requirements for real estate licensees to include training on agency, and grants the New Jersey Real Estate Commission authority to create regulations for other agency or business relationships. The act is set to take effect on August 1, 2024.

Statutes affected:
Introduced: 45:15-16.2