Bill > S1314

Introduced Session

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.

Committee Categories

Nilsa Cruz-Perez (D)*,  Nellie Pou (D)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)

Official Document