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Rules Changes and Laws For New Jersey Real Estate

By
Real Estate Agent with Fathom Realty 8431215

As required by the landmark lawsuit settlement against the National Association of Realtors, the following changes  have been and will be implemented this week:

 

1.  In our local MLS, it is no longer a requirement for sellers to compensate the buyer agency.  It is optional.  In my opinion, when a seller does offer compensation, it opens your house up to more potential buyers.

 

2.  All buyers are required to sign a Buyer Agency Agreement, as of Saturday 8-17-24.   This agreement outlines agency, and also sets in writing the fee you will now pay the buyer broker, if the seller is not offering any assistance.  This also binds the buyer to one agent for a specific time period, so choose wisely.

If you are viewing property in NJ without having signed one after 8-17-24, your agent is breaking the rules.

This does not apply to open houses.   

Math confuses many people, and I am sure there will be some bumps in the road, and a lot of confusion among many.  I have a pretty firm grasp on how to navigate these new rules, and I am here to help and assist if you have any questions.

 

(609) 864-8164

 

  https://michaelelliott.fathomrealty.com/

 

Posted by

Michael Elliott

NO ONE DOES MORE TO GET YOU MORE

         

michaelelliott.fathomrealty.com

Burlington, New Jersey Real Estate 

Broker / Salesperson

Fathom Realty

elliottrealtor@gmail.com

cell (609) 864-8164   office (888) 455-6040

My market area map for New Jersey

Comments(9)

Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Michael Elliott,

Your post reinforces that real estate is different in any state. In your state dual agency is allowed in ours it is not but we do have Intermediary.  With 89% of buyers being represented by an agent it does pose the question to a seller do they want to attract this pool of buyers?

Aug 14, 2024 05:39 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Michael... has your MLS previously required the seller to compensate the buyer's agent?

Aug 14, 2024 05:43 AM
Michael Elliott

Yes--edit--  I am told now No.   I am pretty sure this rule was relaxed not too long ago.  No one ever explained that it was optional, I guess this is why the lawsuit, Nina Hollander, Broker .  Optional, for MLS submission.

Aug 14, 2024 06:08 AM
Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

Good morning Michael. Sellers are interested in one number, net proceeds. Buyers are interested in one number, cash out of pocket. If sellers do the math they will be surprised to find how they can net more by seemingly taking less. Math can lie. Reality does not. Enjoy your day.

Aug 14, 2024 05:45 AM
Michael Elliott

Well said Wayne.

Aug 14, 2024 06:08 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

I feel a bit sorry for first time buyers. They may be talking to an agent but do not feel comfortable signing a buyer rep agreement. Agents need to fill out two forms...one simply for the first house you show them, a second if they like your service and wish to continue. I think it is important for agents to establish what they bring to the table during that first meeting.

Aug 14, 2024 06:00 AM
Michael Elliott

Jeff--as you know, many sellers in first time markets will not cut off their nose to spite their face.   Many will pay the buyer broker, or a buyer concession.

Aug 14, 2024 06:07 AM
Roy Kelley
Retired - Gaithersburg, MD

It is good to let consumers know that changes are being made and it may take a while for the needed adjustments.

Aug 14, 2024 06:54 AM
Jeffrey Richman
Immediate Home Solutions - Myrtle Beach, SC
Creative Real Estate Specialist

Hi Michael,

It does seem like each state is different and has different requirements.  Best of luck to you with the new changes.

Aug 14, 2024 07:51 AM
Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

I have told my agents we only adhere to Nebraska Law.  We will only take guidance from that and the Nebraska Real Estate Commission...which has been quiet on the subject up to this point.

So for us, since our company is not a member of NAR or the local/state...it is business as usual for us with the exception of asking a new set of questions.  

I am sure it will all shake out in the next few months.

Aug 14, 2024 05:12 PM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Michael Elliott I am not a Realtor, but I don't think #1 is a good rule, however, I think #2 is a good one.

Aug 14, 2024 06:06 PM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Our Calif rules are similar, Michael Elliott

No commission offered through the mls...a big NO.

Must sign a contract with  buyer before showing a home.

Different approach when holding an open house.

We will adapt and we will prosper.

Aug 20, 2024 04:18 PM