Real estate buyers and sellers in New Jersey have more leverage starting Aug. 1

Gov. Phil Murphy has signed into law the Real Estate Consumer Protection Enhancement Act, which implements consumer protections in both residential and commercial real estate transactions.

The bill, co-sponsored by Assemblyman Roy Freiman, D-Somerset, will require new responsibilities for brokerage firms, buyers’ agents, sellers’ agents, and anyone else who helps consumers buy and sell real estate, as of Aug. 1.

“By standardizing broker agreements and promoting continued education for licensees, we cultivate trust and integrity in the real estate market, supporting residents throughout the process, and assisting them in achieving their homeownership goals,” Freiman said in a statement.

The bill was inspired by a Missouri federal jury decision from October 2023 that found the National Realtors Association (NAR) and other real estate companies guilty of making home sellers pay extra in commission fees.

More: Here are the latest home sales in the Central Jersey real estate market

NAR reached a settlement with the federal government establishing new principles for real transactions, which New Jersey has parroted in its new bill.

Principles include sellers having to provide a property disclosure form while realtors will be required to use buyer agency agreement forms.

Ethan Mannello: EMannello@mycentraljersey.com

This article originally appeared on MyCentralJersey.com: NJ real estate buyers and sellers have more leverage starting Aug. 1