What’s Happening at the Association
80,719
New Listings in New Jersey Year-to-Date
117
Educational Sessions on the 2024 Realtors® Triple Play Schedule
38% of brokerage firms had experience working with commercial building repurposing according to the 2024 Realtors® & Sustainability Commercial Report.
What’s Happening in the Industry
Realtors® Triple Play is set for Dec. 9-12 in Atlantic City. Encourage your agents to attend these courses to further understand industry practice changes: Communicating Your Value to Buyer Clients, Lawsuits, Commission & Realtors®, Oh My!, and Litigation Update: Recent Cases Impacting Real Estate
Bring your brokerage into the digital age with digital business cards from member perks partner Mobilo. Share your contact information with just a tap and receive 15% off any custom card material with NJ Realtors® Member Perks Program. Click here to learn more
We’ve teamed up with Clean Ocean Action to host a beach clean-up at Island Beach State Park on Oct. 19 from 9 a.m.-12 p.m. Bring gloves and a bucket, and help keep our Jersey shoreline clean. Click here to sign up
Convey industry changes online to potential clients and agents with shareable social media posts about the Real Estate Consumer Protection Enhancement Act. Post a full law breakdown, the ins and outs of brokerage services agreements, and introduce designated agency
LEGISLATIVE UPDATES
Acting Governor Signs New Legislation Outlawing Discrimination in Real Estate Appraisals
Last month, Acting Governor Tahesha Way signed Bill A2280/S1311, sponsored by Asw. Yvonne Lopez, Asw. Verlina Reynolds-Jackson, Asw. Tennille R. McCoy, Sen. Nellie Pou, and Sen. Teresa Ruiz, into law.
The legislation prohibits discriminatory practices in real estate appraisals and aims to take a step toward eliminating the racial wealth gap in New Jersey by confirming it is illegal for real estate appraisers to take into account a person’s demographics when determining the value of their property.
These personal characteristics include race, color, religion, sex, sexual orientation, gender identity, age, marital status, disability, familial
status, or national origin of the current or future owners or occupants of the property in question, or nearby.
The Appraisal Qualification Board will enforce the law and provide an additional way for property owners to report and seek remedies for home appraisal discrimination.
The new law also requires real estate appraisers to complete a fair housing and appraisal bias education course, offered by the Appraisal Qualification Board, to learn about bias and how to avoid bias in the appraisal process. Click here to read the governor’s office release
New FAQs Released on the Real Estate Consumer Protection Enhancement Act
Q: Who is required to complete the Seller’s Property Condition Disclosure Statement under the Real Estate Consumer Protection Enhancement Act?
The Real Estate Consumer Protection Enhancement Act, which went into effect on Aug. 1, 2024, requires all sellers of all residential real property, including banks, estate administrators and other entities, to disclose on the Seller’s Property Condition Disclosure Statement, any known condition of the property to the best of their knowledge. While certain disclosures (ex. Flood Risks) must be disclosed beyond actual knowledge, most of the Property Condition Disclosure Statement relies upon a seller’s actual knowledge. If a seller does not have actual knowledge to answer the question, the seller may select “unknown” if the option is available.
In the context of commercial transactions, sellers of commercial real estate are not required to complete the entire Seller’s Property Condition Disclosure Statement but are required to make the necessary “Flood Risk” disclosures on the Seller’s Property Condition Disclosure Statement beyond actual knowledge.
Please note the Seller’s Property Condition Disclosure Statement must be completed (in its entirety for any residential sales and partially for solely commercial sales) and signed by the seller and provided to the buyer prior to the buyer becoming obligated under any contract to purchase the real estate.
If the real property consists of multiple units, systems and/or features, sellers are required to provide complete answers for such units.
Q. Which pre-closing disclosure forms must include the conspicuous statement about the negotiability of commissions?
To comply with the National Association of Realtors® proposed settlement agreement, beginning on Aug. 17, 2024, licensees working with sellers and buyers must disclose in conspicuous language that broker commissions are not set by law and are fully negotiable. In addition to including this disclosure in brokerage services agreements (i.e. listing agreements and written buyer agreements), the conspicuous statement must also be included on all pre-closing disclosure forms pertaining to broker representation services (or, if the form is government-specified, be accompanied by a document containing the conspicuous statement). Examples of pre-closing disclosure forms, which must contain the conspicuous statement include, but are not limited to, the Consumer Information Statement, Informed Consent to Disclosed Dual Agency, and the Informed Consent to Designated Agency. New Jersey Realtors® updated its preclosing disclosure forms to comply with this requirement and created an addendum to accompany any such pre-closing disclosure forms, which do not have the conspicuous statement included.
Visit njrealtor.com/zipform to download the updated forms.
For more FAQs, visit njrealtor.com/cpea
Broker Bulletin
Summer Market Reaches New High While Mortgage Interest Rates Expect to Decline
Prices and temperatures in the Garden State reached new heights and according to New Jersey Realtors® August 2024 housing market data report, the median sales price across the entire market increased 11.1% year-to-date—officially clocking in at half a million dollars.
Sales prices in the single family market experienced a similar trend with a median sales price increase of 11% to $555,000. The median sales price for townhouses and condos increased slightly more at 13.2% reaching $413,000. In adult communities, the median sales price is up 7.6% to $355,000.
Closed sales are down 2.2% across the entire market year-to-date, but the townhouse-condo market experienced a slight uptick of 0.7%. Closed sales decreased 3.5% in adult communities and 3% in single family homes.
Even with the small decline in closed sales, demand for single family homes remains strong with homes remaining on the market for less time than last year and receiving an average of 3.2% over asking, 1% more than this time last year.
These continued above-asking offers coupled with the expected dropping mortgage interest rates, could have pushed unsure sellers to list their homes. New listings across New Jersey are up 4.7% year-to-date which amounts to 3,611 additional new listings so far in 2024 compared to 2023. Federal rate cuts are anticipated over the next several weeks and mortgage rates preemptively decreased during the latter half of September. As of Sept. 26, the 30-year rate averaged 6.08% in the U.S., the 52-week average remains close to 7% at 6.89%.
While sales prices in New Jersey continue to rise, declining mortgage interest rates could be just what buyers are looking for to start their home search.
Important Dates Ahead
OCT. 15 Last Day for Realtors® Triple Play Early Bird Registration
OCT. 18 2025 NJ Realtors® Committee Application Deadline
OCT. 19 NJ Realtors® Beach Clean Up with Clean Ocean Action
NOV. 6-11 NAR NXT in Boston
DEC. 9-12 Realtors® Triple Play in Atlantic City
DEC. 31 NAR Code of Ethics Deadline
FEATURE STORY
New Consumer Guides to Buyers Agency Agreements Now Available
As industry changes as mandated by the National Association of Realtors® proposed settlement agreement and the New Jersey Real Estate Consumer Protection Enhancement Act take shape in the real estate industry, it is vital to continue to support consumers in their home buying, selling, and renting journey. While the way we do business has transitioned, Realtors® dedication to their clients remains stronger than ever before.
Buyer agency agreements, and other agreements that fall within the scope of brokerage services agreements, are not a new practice by any means. Even so, first-time buyers will undoubtedly have questions about the agreement, why they must sign it, and how it impacts their transaction. To aid members in their pursuit of transparent transactions and following the new regulations, NAR launched a series of consumer guides to help you and your agents address brokerage services agreements and compensation. Click the links below to download NAR’s guides or visit facts.realtor
• Consumer Guide to Written Buyer Agreements: Covers why consumers must sign the agreement, how consumers benefit from the agreements, and how real estate agents are paid.
• Consumer Guide to Open Houses and Written Agreements: Addresses open houses and signing agreements, industry definitions, and buyer agreements’ purpose.
• Realtors® Duty to Put Client Interests Above Their Own: Helps consumers learn
about a Realtors® commitment to the Code of Ethics, the difference between buyer’s and seller’s best interests, and steering.
• What Veterans Need to Know About Buying a Home: Encompasses paying agents under VA loan rules, NAR’s work in promoting VA loans, and the VA’s temporary policy which allows buyers to pay agents with VA home loans.
• Consumer Guide to Offers of Compensation: Deals with the types of compensation, advertising compensation, and concessions.
• Consumer Guide to Negotiating Written Buyer Agreements: Asists consumers’ understanding of the ability to negotiate buyer agreements, how agents are compensated, and how to start the conversation.
• Consumer Guide to Multiple Listing Services: Breaks down what an MLS is and its value, how it helps consumers buy and sell homes, and how to navigate compensation.
Empower home buyers and sellers with the knowledge they need to navigate one of the largest transactions of their lifetime. Use these guides to start conversations, educate agents and clients, and implement the necessary changes to your brokerage. NAR plans to continue to develop more guides in the weeks to come—stay up to date and visit facts.realtor. All guides are available in English and Spanish.
LLC Rule to Go into Effect in Early 2025
The New Jersey Real Estate Commission adopted the Limited Liability Company Rule to allow commission payments to be made to LLCs. As part of the regulatory process in New Jersey, the next step is the State of New Jersey publishing the LLC Rule in the New Jersey Register, which contains all proposed and adopted changes, public notices, and Executive Orders.
The NJ Register published the LLC Rule on Aug. 19 and the changes will take effect six months after the publication date. We will notify members when the new rule is officially in effect. Click here to read the NJ Register
BUILDING CONNECTIONS
Volunteer with NJ Realtors® and Make Your Voice Heard
Whether you have new, seasoned, or part-time agents, New Jersey Realtors® invites all members to apply to serve on a 2025 committee. 14 committees oversee a vital aspect of the association and help with the decision-making process such as our advocacy efforts, professional standards, communications, and more. Click here to share the application. All applications are due by Oct.18 at 5 p.m.