Compensation Disclosure Under N.J.A.C. 11:5 and Post-Settlement Requirements

Before you start — 6 things to know

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  Your buyer agency agreement in New Jersey must spell out exactly what your agent will be paid — either a dollar amount, a percentage of the purchase price, or another objective formula. Vague language like 'whatever the seller offers' does not satisfy the NAR settlement rules that took effect in August 2024.

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  You can negotiate the compensation your buyer's agent receives in New Jersey. The Consumer Information Statement your agent must give you up front states plainly that buyer's agent pay is variable and open to negotiation.

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  If a seller's concession ends up larger than the fee in your buyer agency agreement, the extra money must be credited back to you at closing. The only exception is when your buyer agency agreement explicitly says your agent may keep any overage.

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  Under New Jersey rule N.J.A.C. 11:5-6.2(a), your buyer's agent cannot receive any compensation or thing of value tied to your transaction without written consent from the party paying it. That includes seller concessions, broker bonuses, and any other payment connected to the deal.

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  Since August 2024, the compensation a seller is willing to offer a buyer's agent can no longer appear in MLS listing data fields. Your buyer's agent has to find out by asking through the listing agreement, the offer package, or direct broker-to-broker negotiation.

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  You can put a request for a seller concession toward your agent's fee directly into your written offer on a New Jersey home. The seller can accept, counter, or reject that request just like any other term of the offer.

The timeline — step by step

1. 1

   Before your buyer's agent shows you any homes in New Jersey, they must hand you the Consumer Information Statement. This one-page document explains how agent compensation works and that it is fully negotiable.

2. 2

   Sign a written buyer agency agreement that states the exact amount your agent will be paid — as a dollar figure, a percentage of the purchase price, or another clear formula — before you tour properties or submit offers. Open-ended compensation language no longer satisfies the NAR settlement requirements.

3. 3

   When you write an offer on a New Jersey home, decide whether to ask the seller to cover part or all of your agent's fee. That request belongs in your offer package, not in the MLS listing data.

4. 4

   At closing, review the settlement statement for the buyer's agent fee. If the seller's concession turned out to be larger than the amount in your buyer agency agreement, the difference should be credited to you unless your contract says your agent can keep it.

Common questions