On August 1, 2024 Governor Phil Murphy signed a Bill into action changing some practices from optional to mandatory.  Among these practices for the consumer are the following very important documents, now required in the industry.  I have always utilized these documents in my business; however, now it is the law.   

The first is the Seller's Property Condition Disclosure Statement.  Sellers must provide a fully completed, property condition disclosure statement before buyers are contractually obligated. This rule applies to all residential sales, including bank-owned properties, exclusives, and estates.

The next is the Buyer Agency Agreement, which is now required before showing a property.  All real estate licensees will be required to use written brokerage agreements outlining the services they will provide over the course of a respective transaction, regardless of the status of the property being shown, i.e private exclusive vs. active. What a buyer will pay in commission will be established at this time, within this signed agreement.

Some additional points regarding representation in the law states that Listing Agents will be required to explicitly disclose who they represent at open houses. There is now also Designated Agency in comparison to Dual Agency which enables a brokerage to appoint an agent to either side of a transaction at the client’s request.  

Please let me know if you have any questions or would like to discuss this topic further.  Thank you! 

Best, Melanie