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Buyer Agency Agreements and Seller Property Disclosures Are Required Under New Jersey Law

• Buyer Agency

As real estate professionals, we have a responsibility to understand—and comply with—the laws and regulations that govern our business. Some requirements are not matters of personal preference, office policy, or "best practice." They are legal obligations.

Two of the most important are buyer agency agreements and seller property disclosures.

Buyer Agency Agreements: A Legal Requirement

New Jersey law now requires brokerage services to be governed by a written brokerage services agreement. When a brokerage firm represents a buyer, the agency relationship, compensation terms, and required disclosures must be documented in writing. The agreement must include the New Jersey Real Estate Commission's Consumer Information Statement and clearly disclose the agency relationship before or at the time the brokerage services agreement is signed.

This is more than paperwork—it establishes who you represent, defines your fiduciary duties, and provides transparency for the consumer.

Every REALTOR® should ensure that buyers understand:

1. Who represents them.
2. The scope of the representation.
3. How compensation is addressed.
4. Their rights and responsibilities under the agreement.

Failure to properly document the agency relationship can expose both the licensee and the brokerage to unnecessary regulatory and legal risk.

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