New Jersey guide

Agency Relationships in NJ: Seller's Agent, Buyer's Agent, Dual Agent, Transaction Broker

In New Jersey, you can have an agent who works only for you, share an agent with the seller (dual agency), or use a transaction broker who works for neither side.

Reading as buyer.

TL;DR

In New Jersey, you can have an agent who works only for you, share an agent with the seller (dual agency), or use a transaction broker who works for neither side. Only a buyer's agent owes you full loyalty and keeps your budget and strategy private from the seller. Since August 17, 2024, you must sign a written buyer agency agreement with your agent before they tour homes with you.

Before you start — 10 things to know

New Jersey recognizes four types of agent relationships you can have when buying a home: seller's agent, buyer's agent, disclosed dual agent, and transaction broker.
A New Jersey buyer's agent legally owes you six fiduciary duties: loyalty, confidentiality, full disclosure, obedience to lawful instructions, reasonable care, and accounting for your funds.
If the agent showing you a home is the seller's agent, they represent the seller, not you, and they are not required to keep your top budget or negotiation strategy confidential.
A seller's agent in New Jersey still has to tell you about known material defects in the home, even though their loyalty runs to the seller.
Disclosed dual agency in New Jersey happens when the same brokerage represents both you and the seller, and it can only proceed after both sides give informed written consent.
In a dual-agency deal in New Jersey, your agent cannot share the seller's bottom-line price with you, cannot advocate hard for your offer, and must treat both sides fairly.
Many large New Jersey brokerages avoid one-agent dual agency by using designated agency, where one licensee represents you and a different licensee in the same firm represents the seller.
A transaction broker in New Jersey is a neutral facilitator who helps both sides close the deal but owes neither party loyalty, confidentiality, or obedience; it is uncommon in residential sales.
Since August 17, 2024, New Jersey buyers must sign a written buyer agency agreement with an agent before that agent tours homes with them, in line with settlement guidance from NJREC.
Before any agent relationship is formally established in New Jersey, the agent must hand you a Consumer Information Statement that explains all four relationship options in plain language.

The timeline — step by step

At your very first substantive meeting with a New Jersey real estate agent, expect to be handed the Consumer Information Statement that explains the four agency options.
Decide which relationship you want before touring homes; if you want full loyalty and confidentiality, ask the agent to represent you as a buyer's agent.
Sign a written buyer agency agreement before you tour any property with that agent in New Jersey, since that signed agreement has been required since August 17, 2024.
If you fall in love with a home that is listed by your own agent's brokerage, expect a separate written dual-agency or designated-agency consent before any offer is written.
Read the dual-agency consent carefully and only sign if you accept that your agent can no longer privately coach you on price; otherwise ask for a different agent in the same firm.
During negotiation under dual agency in New Jersey, expect your agent to pass numbers between you and the seller without arguing for either side.
At closing, keep the Consumer Information Statement, the buyer agency agreement, and any dual-agency consent with your other documents in case any question comes up later.

Common questions

Do I really have to sign a buyer agency agreement before I tour homes in New Jersey?

Yes, since August 17, 2024, New Jersey buyers must have a written buyer agency agreement in place with an agent before that agent tours property with them, following NJREC guidance implementing the settlement.

Does the agent at the open house represent me?

Usually not; in New Jersey the agent hosting an open house typically represents the seller, so anything you tell them about your budget or urgency is not held in confidence for you.

What is the catch with dual agency in New Jersey?

In a New Jersey dual-agency deal, the same agent represents both you and the seller, so they cannot share the seller's lowest price with you, cannot advocate for your side, and must treat both parties fairly.

Can I say no to dual agency and still buy a home listed by my agent's firm?

Yes, you can refuse dual agency in New Jersey; the brokerage can then assign a different agent in the same firm to represent only you under designated agency, or you can hire an outside buyer's agent.

What is a transaction broker, and should I use one as a buyer?

A transaction broker in New Jersey is a neutral facilitator who owes both sides honesty and reasonable care but no loyalty or confidentiality, so most buyers prefer a buyer's agent who is legally on their side.

What is the Consumer Information Statement my agent gave me?

The Consumer Information Statement is a New Jersey-required disclosure that explains the four agency relationships you can choose from before you formally pick one with the agent.

Glossary

1 term

NAR — National Association of Realtors: The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.

Sources

Last updated