Section 45:15-16.88 - Brokerage firms, real estate brokerage services, buyer's agent, conditions, exceptionsa. A brokerage firm, including brokers, broker-salespersons, and salespersons affiliated with the brokerage firm, that performs real estate brokerage services for a buyer is a buyer's agent unless: (1) a brokerage firm, including brokers, broker-salespersons, and salespersons affiliated with the brokerage firm, represents the seller pursuant to a brokerage services agreement between the brokerage firm and the seller, in which case the brokerage firm, including the brokers, broker-salespersons, and salespersons, is a seller's agent;(2) a brokerage firm, including brokers, broker-salespersons, and salespersons affiliated with the brokerage firm, represents the seller pursuant to a brokerage services agreement between the brokerage firm and the seller, and the brokerage firm, including the same broker, broker-salesperson, or salesperson or a different broker, broker-salesperson, or salesperson affiliated with the same brokerage firm in a residential real estate transaction or otherwise represents the buyer in a commercial real estate transaction, represents the buyer pursuant to a brokerage services agreement between the brokerage firm and the buyer, in which case the brokerage firm, including the broker, broker-salesperson, or salesperson or brokers, broker-salespersons, or salespersons, as applicable, is a disclosed dual agent;(3) the brokerage firm, including a broker, broker-salesperson, or salesperson affiliated with the brokerage firm, has agreed to work with the buyer pursuant to a brokerage services agreement between the brokerage firm and the buyer in a residential real estate transaction or otherwise represents the buyer in a commercial real estate transaction as a transaction broker; or(4) the broker, broker-salesperson, or salesperson affiliated with the brokerage firm is the seller or one of the sellers.b.(1) In a residential real estate transaction, a brokerage firm shall enter into a brokerage services agreement with the buyer before, or as soon as reasonably practical after, the firm commences rendering real estate brokerage services to, or on behalf of, the buyer. A brokerage services agreement shall not be required between a brokerage firm and a buyer in a commercial real estate transaction.(2) The brokerage services agreement shall include the following: (a) the term of the brokerage services agreement, including, if applicable, the period after the termination of the agreement that the brokerage firm will be protected as provided in the agreement with regard to any properties that a broker, broker-salesperson, or salesperson from the brokerage firm introduced to the buyer during the term of the agreement;(b) that the brokerage firm is appointed as an agent for the buyer;(c) if the agency relationship is exclusive or nonexclusive;(d) if the buyer consents to the brokerage firm acting as a disclosed dual agent or designated agent, which, if consent is granted, shall be in the brokerage services agreement or another document requiring separate initialization or signature by the buyer and include an acknowledgment from the buyer that a disclosed dual agent shall not advocate terms favorable to one principal to the detriment of the other principal;(e) if the buyer consents, as demonstrated by initialization or signature, to the broker or a managing broker for the brokerage firm, or a broker, broker-salesperson, or salesperson appointed by the broker or managing broker, being an agent for the buyer to act as a disclosed dual agent in a transaction in which the same broker, broker-salesperson, or salesperson or different brokers, broker-salespersons, or salespersons, as applicable, affiliated with the brokerage firm represent different parties;(f) the brokerage firm's compensation, how the compensation will be calculated, and if the compensation is to be shared with another brokerage firm that may have a brokerage relationship with another party to the transaction; and(g) a disclosure expressly stating that broker compensation is fully negotiable and not set by law.c. A brokerage firm may work with a party in separate transactions pursuant to different or the same agency relationships, including, but not limited to, representing a party in one transaction and at the same time representing that party in a different transaction, if the broker complies with P.L.2024, c.32 (C.45:15-16.86 et al.) in establishing the relationships for each transaction, even if the other transaction is a related transaction.Added by L. 2024, c. 32,s. 3, eff. 8/1/2024.