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ew Jersey's Real Estate Consumer Protection Enhancement Act, which went into effect in August 2024, aimed to create a more transparent and buyer-friendly market. A year later, local agents say it's working. Allison Maguire, a sales associate with Brown Harris Stevens in Montclair, initially had concerns about the added paperwork and conversations required by the law. However, she now believes it has improved transparency.

    The law introduced several regulations, including mandatory property condition disclosure forms from sellers and landlords, and listing agents must post a disclosure of representation at open houses. Designated agency was also permitted, allowing managing brokers to choose an agent within their office to represent a client. The most significant change was making Buyer Representation Agreements (BRAs) mandatory for all buyers and renters.

    Maguire said the BRA regulation forced her to think about what she brings to the table as an agent and how she can make the process clear for her buyers through the agreement. She believes these agreements provide flexibility, allowing clients to sign for one town or multiple towns and work with a specific agent for a set period. This has alleviated concerns that buyers would be stuck in a contract.

    Michael Read, owner of Bridgeway Mortgage and Real Estate Services in Morristown, thinks the BRA provides protections for all parties involved in a transaction. It gives buyers and renters clarity about the process from the beginning and outlines agents' responsibilities and expectations. While first-time homebuyers and renters have been more hesitant to sign these agreements, established buyers have generally been more comfortable with them.

    The BRA also clarifies who pays the commission for the buyer's agent. Previously, sellers were responsible for paying both agents' commissions, but now it can fall on the buyer for their own agent. Read said he hasn't seen many instances where buyers are responsible for paying their agent's full commission since this regulation became mandatory.

    However, Maguire has seen more examples of sellers paying only a portion of a buyer's agent's commission, leaving the rest to be paid by the buyer. This has been affected by New Jersey's new mansion tax rules, which implemented higher fees for properties over $1 million and shifted the burden from buyers to sellers. Sellers are now more keen on paying less commission to help combat these new fees.

    Read believes there could be more changes down the road or additional regulations, but for now, he thinks this has been good for the market overall.