45:15-16.87 Brokerage firm acting as buyer's, seller's, dual disclosed, designated agent, duties owed to principal, all parties in a transaction.

694 words·~3 min read·/nj/title-45/chapter-15/45-15-16-87·

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2. In addition to the duties provided for under current law, a brokerage firm, including its brokers, broker-salespersons, and salespersons, when acting as a buyer's agent, seller's agent, disclosed dual agent, or designated agent, owes the following duties to the brokerage firm's principal and to all parties in a transaction, which may not be waived:

a. to strictly comply with the laws of agency and the principles governing fiduciary relationships;

b. to exercise reasonable skill and care;

c. to deal honestly and in good faith;

d. unless otherwise directed in writing by the principal, to present all written offers and counteroffers in a timely manner in accordance with applicable law and to provide written confirmation of receipt to the other party or its agent or transaction broker of each and every written offer or counteroffer as soon as reasonably practicable, regardless of whether the property is subject to an existing contract for sale or the buyer is already a party to an existing contract to purchase another property;

e. where the principal is the seller in a residential real estate transaction, to obtain a signed property condition disclosure statement that is provided for in section 1 of P.L.1999, c.76 (C.56:8-19.1), with it being required that the seller provide to the brokerage firm the statement with the information filled in and signed by the seller and, if the seller is not represented by a brokerage firm or working with a brokerage firm that is a transaction broker, then the seller shall be required to provide the statement to the buyer before the buyer becomes obligated under any contract for the purchase of the property;

f. to disclose all existing material information known by a real estate broker, real estate broker-salesperson, or real estate salesperson acting on behalf of the brokerage firm or which a reasonable effort to ascertain the information would have revealed to their principal and when appropriate to any other party to the transaction concerning the physical condition of the property that is for sale;

g. to provide an accounting to the principal as necessary in a timely manner for all money and property received from or on behalf of any party to the transaction;

h. in a residential real estate transaction, to provide the consumer information statement in the form required by the New Jersey Real Estate Commission and obtain a signed acknowledgment of receipt of same by the party. The statement shall be included as part of the brokerage services agreement. The statement shall be provided to:

(1)any party to whom the broker renders real estate brokerage services as soon as reasonably practical, but no later than at the time the party signs a brokerage services agreement; and

(2)any party not represented by a brokerage firm in a transaction before the party signs an offer or as soon as reasonably practical thereafter;

i. to disclose in writing as soon as reasonably practical, but no later than at the time the brokerage firm's principal signs a brokerage service agreement:

(1)whether the brokerage firm is acting as the buyer's agent, the seller's agent, a disclosed dual agent, a designated agent, or a transaction broker. The disclosure shall be set forth in a separate paragraph titled "Agency Disclosure" in a brokerage services agreement prepared by the brokerage firm between the principal and the brokerage firm or in a separate writing titled "Agency Disclosure" signed by the principal; and

(2)the terms of compensation, if any, offered by a party or the brokerage firm to another brokerage firm representing a different party; and

j. to undertake a reasonable effort to obtain material information concerning the condition of every property for which the brokerage firm accepts an agency relationship or is retained to market as a transaction broker and concerning the financial qualifications of every person for whom the brokerage firm submits an offer to the brokerage firm's principal, provided that the broker, broker-salesperson, or salesperson at the brokerage firm who undertakes the reasonable efforts shall not be held to a standard of a licensed property inspector unless that broker, broker-salesperson, or salesperson is separately licensed as a property inspector.

L.2024, c.32, s.2.