The New Jersey Legislature enacted the Real Estate Consumer Protection Enhancement Act (Bills A4454/S3192) to bolster transparency and consumer safeguards in real estate transactions.

Effective August 1, 2024, this law introduces two primary provisions:

1. Mandatory Seller Property Condition Disclosure:

• Requirement: Sellers must provide a fully completed property condition disclosure statement to prospective buyers before any contractual obligation is established.
• Purpose: This ensures buyers receive comprehensive information about the property’s condition upfront, promoting informed decision-making and reducing potential disputes.

2. Authorization of Designated Agency:

• Definition: Designated agency allows a brokerage to appoint separate agents within the same firm to represent different parties in a transaction—one for the seller and another for the buyer.
• Implementation: To engage in designated agency, the brokerage must obtain informed written consent from both the seller and the buyer. The designating broker oversees the transaction, acting neutrally without advocating for either party to prevent conflicts of interest.

In summary, the Act mandates that sellers disclose property conditions before binding agreements and permits brokerages to represent both parties in a transaction through designated agents, provided all parties consent.

These measures aim to enhance transparency and trust in New Jersey’s real estate market.