Navigating New Real Estate Laws: What Buyers and Sellers in New Jersey Need to Know

The Gill Group
Aug 26, 2024
3 min read

Updated: Feb 23

Recent changes in real estate practices are impacting how buyers and sellers navigate transactions across the country — including here in Bergen County and Northern New Jersey.

Laura Gill, CEO of The Gill Group, shares what these changes mean and how they may affect you.

If you're planning to buy or sell, understanding these updates is essential.

https://www.youtube.com/watch?v=TKVEf1ZsoTM

Key Change #1: Buyer Agency Agreement Required Before Viewing Homes

If you are a buyer and want to tour a property, you must now sign an Exclusive Buyer Agency Agreement before seeing any home.

This is one of the most significant changes in recent real estate practice.

What This Means for Buyers

You must formally establish a relationship with your buyer’s agent before touring homes.
Agreements can be flexible — you can sign for:
- A single day
- A week
- Or a longer-term commitment
This allows you to evaluate whether you and the agent are a good fit before committing long-term.

This agreement outlines representation terms, including compensation structure and responsibilities.

Key Change #2: Buyer Agent Compensation Is No Longer Published on the MLS

Another major update: listing agents can no longer publish buyer agent commission details on the MLS.

However, this does not mean commissions are disappearing.

What We’re Seeing in the Market

The vast majority of sellers are still offering compensation to buyer agents.

Why?

Because offering buyer agent commission remains one of the most effective marketing tools a seller has. It encourages agents to bring qualified buyers to the property.

How Buyers Can Know What a Seller Is Offering

Since commission details are no longer publicly displayed in the MLS:

Your buyer’s agent can directly contact the listing agent.
Compensation details can be confirmed before you tour the property.
You can understand whether:
- The seller is offering full commission
- A partial concession
- Or if you would be responsible for any portion

Transparency still exists — it just requires direct communication.

What If a Seller Does Not Offer Buyer Agent Commission?

While less common, some sellers may choose not to offer compensation.

In those cases, we are seeing buyers structure offers in one of two ways:

Writing a higher purchase offer and requesting a seller concession equal to the buyer agent commission.
Including language in the offer specifying that the seller will pay the agreed-upon buyer agency commission.

The terms would follow what is outlined in your Buyer Agency Agreement.

Why There Is Confusion Around These Changes

These updates involve legal agreements, MLS rule changes, and negotiation strategy — so it’s understandable that buyers and sellers may feel uncertain.

The key takeaway is this:

Representation still matters.Compensation structures still exist.Strategy and communication are more important than ever.

What This Means for Bergen County Buyers and Sellers

In competitive Northern New Jersey markets like Ridgewood, Allendale, Franklin Lakes, Glen Rock, and surrounding towns:

Buyers need clarity before touring homes.
Sellers need strong marketing strategies.
Negotiation structure is becoming more nuanced.

Working with an experienced, knowledgeable real estate team is critical in this evolving environment.

Frequently Asked Questions

Do I really need to sign a Buyer Agency Agreement before seeing a home?

Yes. Under the new guidelines, buyers must sign an Exclusive Buyer Agency Agreement before touring properties with an agent.

Can I sign a short-term buyer agreement?

Yes. Agreements can be structured for a day, a week, or longer — depending on what you and your agent agree upon.

Are sellers still paying buyer agent commissions?

In most cases, yes. The majority of sellers are still offering buyer agent compensation as part of their listing strategy.

Why can’t commission details be shown on the MLS anymore?

Under new industry rules, listing agents are no longer permitted to publish buyer agent compensation details in the MLS. Compensation must now be communicated directly.

What happens if a seller does not offer buyer agent commission?

Buyers can negotiate compensation within their offer, either through a higher offer with a concession or by including commission terms in the contract.

Does this change make buying more expensive?

Not necessarily. Compensation is still negotiable and often structured within the transaction. The impact depends on how the offer is written and negotiated.