What does the New Real Estate Law mean for you in New Jersey?

In early July, Gov. Murphy signed a new Real Estate Bill into law.  The Real Estate Consumer Protection Enhancement Act which went into effect Aug. 1, 2024, strengthens both consumer and real estate licensee protections.  This comes in advance of some of the changes that the National Association of Realtors is implementing effective August 17 coming out of the March 13 settlement, and largely just accelerates those upcoming practice changes.  So, what does this mean for home buyers and sellers?  I’ll break it down for you.

Brokerage Services Agreements

First, before you start working with a licensed real estate professional, you’ll be asked to sign an agreement. While this might seem overwhelming at first, it’s simply an agreement meant to protect you as the client.  It lays out what level of service the agent you’re working with will provide, and outlines how and by whom your agent will be compensated.

Seller’s Property Disclosure

Second, when selling a home, the seller’s property condition disclosure form is now required. Sellers must present a completed and signed form to buyers before the buyers becoming obligated to the sale. The form makes the property history more easily accessib­le for Buyers.. The seller’s disclosure form has been around since 2001 and has been utilized by many sellers even when it was not mandatory. The law gives prospective buyers all the transparency and information necessary to make an informed choice on whether to purchase.

Increased Transparency

Overall, the new Real Estate law aims to increase transparency and clarity in all parts of a real estate transaction.  There are some additional provisions to the law, but the above are the ones that will have the most impact on the experience for Buyers and Sellers.   Buying or selling a home is a complex process and that is why it is important to have a professional New Jersey Realtor® as your guide.  You need someone who is your neighborhood expert and can help you understand the nuances of any deal, ensuring you make informed decisions and navigate any problems smoothly.

For more information on the new Real Estate Law or to start your home buying or selling journey, set up an appointment with me.

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