Bill
Bill > S1314
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill prohibits licensed real estate brokers, salespeople, and broker-salespeople from entering into contracts for the sale of real estate that give the licensee the exclusive right to act as listing agent for the real estate for a period longer than ten years. The bill also requires that such contracts include an option allowing the owner of the real estate to terminate the contract early in exchange for an amount that is not greater than the initial contract price, plus six percent of the initial contract price for each year that elapses following the effective date of the contract. Exclusive listing agreements typically do not last more than one year, and are not entered into unless the owner has immediate plans to sell the real estate. However, some licensees pay real estate owners nominal consideration in the form of cash upfront in exchange for the exclusive right to serve as the owner's listing agent in the event that the owner decides to sell their real estate at any time during a contract period. This contracted period can last for decades, and the contracts contain severe penalties for attempting to terminate the contracts early or list the home with another broker. These contracts may be predatory in nature, and real estate licensees who engage in these contracts have been known to target people in desperate financial situations, including the sick and elderly. This bill protects New Jersey's most vulnerable real estate owners and promotes fair dealing in contracts.
AI Summary
This bill establishes new regulations for certain long-term real estate listing contracts, specifically those termed "right-to-list home sale agreements," which grant a real estate licensee exclusive rights to list a property in the future in exchange for upfront payment. The bill prohibits these agreements from lasting longer than ten years and mandates that they include an option for the property owner to terminate the contract early. If an owner chooses to terminate early, they would be required to pay an amount no greater than the original contract price plus six percent of that price for each year that has passed since the contract began, with the yearly amount compounding. Additionally, the bill requires that these contracts clearly and conspicuously state the contract's duration and the early termination clause, and comply with existing laws regarding real estate contracts. This legislation aims to protect vulnerable property owners from potentially predatory contracts that can have severe penalties for early termination, especially those targeting individuals in difficult financial situations.
Committee Categories
Business and Industry
Sponsors (3)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S1314 |
| BillText | https://pub.njleg.gov/Bills/2026/S1500/1314_I1.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S1500/1314_I1.HTM |
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