Buyer-Agent Agreements in New Jersey
New Jersey is NOT a "rely purely on NAR settlement/MLS rules" state like New York. New Jersey passed its own genuine state statute — the Real Estate Consumer Protection Enhancement Act (CPEA), Senate Bill S3192 (companion A4454), signed into law by Governor Phil Murphy on July 10, 2024 and codified at P.L. 2024, c.32, amending N.J.S.A. 45:15-1 et seq. It took effect August 1, 2024 — coincidentally the same date as the national NAR practice changes, but it is an independent, freestanding New Jersey law, not merely an MLS rule adopted to comply with the NAR settlement. It is broader than a narrow buyer-agreement mandate like Texas's SB 1968: it overhauls agency law generally (codifying buyer's agent, seller's agent, disclosed dual agent, transaction broker, and a brand-new 'designated agency' relationship), while also mandating written brokerage services agreements (covering both buyer-side and seller-side representation), seller property-condition disclosure for all residential sales, and open-house representation signage. New Jersey MLS rules (administered by NJMLS and other local MLSs) separately implement the NAR settlement's practice changes (e.g., removing compensation fields from MLS listings), and the two frameworks now operate in parallel/overlap in New Jersey — the state statute did not replace the need for MLS participants to also comply with the national settlement's MLS-level rules, but it means NJ has real, independent statutory backing for buyer-agreement requirements, unlike pure MLS-rule-only states such as New York.
Real Estate Consumer Protection Enhancement Act (CPEA) — N.J. bill S3192/A4454, codified as P.L. 2024, c.32 — effective August 1, 2024 (signed by Gov. Phil Murphy on July 10, 2024)
Requirements
- Written brokerage services agreement required: real estate licensees/brokerage firms must obtain a signed written agreement with the buyer (or seller) before, or as soon as reasonably practicable after, the firm begins rendering brokerage services — practically requiring a signed buyer representation agreement before an agent shows a property to a buyer (open houses are treated as an exception/carve-out).
- Mandatory content of the agreement: must state the term/duration of the agreement, the name of the brokerage firm, whether the agency relationship is exclusive or non-exclusive, whether the principal consents to dual agency or designated agency if it arises, the brokerage's compensation and how it is calculated (stated in an objective, ascertainable, non-open-ended way), and a conspicuous statement that broker commissions/fees are not set by law and are fully negotiable.
- Compensation cap tied to the agreement: the participant/broker may not receive compensation for brokerage services from any source (buyer, seller, or otherwise) that exceeds the amount or rate agreed to in the signed agreement with the buyer.
- Creation of 'designated agency': brokerages may now formally appoint two different affiliated agents within the same firm to separately and fully represent the buyer and the seller in the same transaction (in addition to the pre-existing buyer's agent, seller's agent, disclosed dual agent, and transaction broker relationships).
- Seller property condition disclosure mandate: all sellers of residential real property (including unrepresented/FSBO sellers) must complete and provide a Seller's Property Condition Disclosure Statement to the buyer before the buyer becomes contractually obligated.
- Open house / MLS transparency rules: listing agents must post conspicuous signage or provide a sign-in disclosure at open houses stating whom the agent represents, and (aligned with the national NAR settlement) compensation offers may no longer be published as a field within the MLS.
Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.