Princeton Town Topics – Let’s Talk Real Estate – August 7, 2024
REAL ESTATE CONSUMER PROTECTION ENHANCEMENT ACT
In early July, Gov. Murphy signed Bill S3192/A4454, also known as the Real Estate Consumer Protection Enhancement Act, into law. The law, which goes into effect Aug. 1, 2024, strengthens both consumer and real estate licensee protections.
- Seller’s Property Condition Disclosure Statement Now Required
Sellers must provide a fully completed property condition disclosure statement before buyers are contractually obligated. This ensures buyers have all the necessary information, promoting informed decision-making and reducing potential disputes. - Designated Agency Now Allowed
Designated agency, which enables a brokerage to appoint different agents to represent both the seller and the buyer with full fiduciary duties at the client’s request, is now permissible.
- Brokerage Services Agreements Required
All real estate licensees will be required to use brokerage agreements, which outline services they will provide to all clients over the course of a respective transaction.
- Signage Required at Open Houses
Listing agents will be required to explicitly disclose who they represent at open houses in the form of signage either at the entrance or sign-in sheet for all attendees to see.
- Compensation Disclosure Changes in Multiple Listing Services
Sellers’ agents can no longer disclose compensation in Multiple Listing Services or notify MLSs about cooperative compensation, if prohibited by MLS policy.
- New CE Requirement Added
Licensees must complete continuing education classes every two years to stay informed and best serve their clients. One course on agency will be added to New Jersey Real Estate Commission continuing education requirements.
