The Real Estate Consumer Protection Enhancement Act introduces comprehensive regulations to improve consumer protections in real estate transactions in New Jersey. It establishes clear definitions for various roles, including "agency relationship," "brokerage firm," "buyers agent," and "sellers agent," which delineate the responsibilities of real estate professionals. The bill mandates that brokerage firms enter into written brokerage services agreements with sellers, outlining the terms of the agency relationship, including whether it is exclusive or nonexclusive. It also requires the seller's consent for the brokerage firm to act as a disclosed dual agent or designated agent, ensuring transparency regarding the duties and limitations of these roles.

Additionally, the legislation emphasizes the importance of confidentiality and the handling of material information, requiring agents to disclose any conflicts of interest and maintain loyalty to their clients. It introduces specific duties for sellers' agents and dual agents, mandates that compensation agreements be in writing, and clarifies that a principal is not liable for unauthorized actions of their agent. The bill also amends continuing education requirements for real estate licensees, ensuring that they receive training on agency during each license renewal period. The New Jersey Real Estate Commission is empowered to create further regulations regarding agency relationships, with the act set to take effect on August 1, 2024.

Statutes affected:
Introduced: 45:15-16.2