45:15-16.96 Real estate transaction, brokerage firm compensation.
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/nj/title-45/chapter-15/45-15-16-96·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
11. a. In any real estate transaction, a brokerage firm's compensation may be paid by one or more of the following: the seller; the buyer; a third party; or by sharing the compensation between brokerage firms. Agreements on compensation shall be in writing signed by the seller or buyer, as applicable.
b. An agreement to pay or payment of compensation shall not establish an agency relationship between the party who paid the compensation and the brokerage firm.
c. A seller may agree that a seller's agent's or transaction broker's brokerage firm may share with another brokerage firm the compensation paid by the seller, provided that this type of agreement is in writing and signed by the seller.
d. A buyer may agree that a buyer's agent's or transaction broker's brokerage firm may share with another brokerage firm the compensation paid by the buyer, provided that this type of agreement is in writing and signed by the buyer.
e. Notwithstanding any provision of chapter 15 of Title 45 of the Revised Statutes or any other law, rule, or regulation to the contrary, including, but not limited to, subsection i. of R.S.45:15-17, a brokerage firm may be compensated by more than one party for real estate brokerage services in a real estate transaction regardless of the agency or transaction broker relationship the brokerage firm has with the parties.
f. A brokerage firm may receive compensation based upon a flat fee arrangement, a percentage of the purchase price, or other method permitted by law, all of which shall be a commission payment for any real estate brokerage services rendered, without breaching any duty to the buyer or seller.
g. To receive compensation for rendering real estate brokerage services from any party, firm, or third party, a brokerage firm shall have a written brokerage services agreement with the buyer or the seller, as applicable, in a residential real estate transaction and a written brokerage services agreement with the seller but not with the buyer in a commercial real estate transaction containing the following:
(1)the terms of compensation, including:
(a)the amount the principal agrees to compensate the brokerage firm;
(b)the principal's consent, if any, and any terms of the consent to compensation sharing between brokerage firms and parties sharing the payment of the compensation; and
(c)the principal's consent, if any, and any terms of consent to compensation of the brokerage firm by more than one party; and
(2)in a brokerage services agreement with a buyer, if there is no agreement, offer, or a limited offer by any other party or brokerage firm to pay compensation to the brokerage firm, if the buyer will pay the difference between the offer and the compensation the buyer has agreed is due to the buyer's agent and, if not, the buyer's agreement as to how to proceed in this situation, including, but not limited to, directing the buyer's agent not to introduce the buyer to properties where the seller is not offering compensation or is offering less compensation to the buyer's agent than the buyer agreed is due to the buyer's agent.
h. A brokerage firm may receive compensation, which shall be deemed to be the payment of a commission, without a brokerage services agreement for the provision of a broker's price opinion, comparative market analysis, or a referral by one firm to another firm if the referring firm provided no real estate brokerage services in the transaction.
L.2024, c.32, s.11.