REAL ESTATE COMMISSION 11:5-6.9
1. Where an office manager has such an individual affiliation, the manager and all licensees working under his or her supervision must provide the disclosure to all buyers referred to the affiliate by that office.
2. Where a referral agent, a salesperson or a broker- salesperson has such an individual affiliation, he or she must provide the disclosure to all buyers he or she refers to the affiliate.
(d) The disclosure required by this section may be combined with the disclosure of affiliation required under RESPA, 12 U.S.C. §§ 2601 et seq. Copies of all written disclosures required by this rule must be retained by the broker as business records available for inspection pursuant to N.J.A.C. 11:5-5.4 and 5.5.
New Rule, R.1992 d.232, effective June 1, 1992. See: 23 N.J.R. 3424(b), 24 N.J.R. 2058(b). Amended by R.1998 d.497, effective October 5, 1998. See: 30 N.J.R. 2333(a), 30 N.J.R. 3646(a). In (a) and (d), changed N.J.A.C. references; and in (a), deleted a reference to stylistic requirements in the introductory paragraph. Amended by R.2012 d.006, effective January 3, 2012. See: 43 N.J.R. 1791(a), 44 N.J.R. 86(b). In (c)2, inserted “referral agent, a” and inserted “a” preceding “broker- salesperson”.
11:5-6.9 Consumer Information Statement
(a) When applied to rental transactions which are not exempt from this rule, references to sellers and buyers, and to the various types of brokerage agreements and business relationships mentioned throughout this rule should be construed as indicating their appropriate counterparts in rental transactions. For example, references to sellers should be read as lessors or owners and references to buyers should be read as lessees or tenants, etc. As used in this rule, the following terms or phrases shall have the following meanings:
1. “Brokerage agreement” means a written agreement between a brokerage firm and a party describing the terms under which that firm will perform brokerage services as specified in N.J.S.A. 45:15-3. Brokerage agreements include, but are not limited to, sale and rental listing agreements, buyer-broker, lessee-broker, transaction broker, and dual agency agreements.
2. “Brokerage firm” means a licensed corporate, partnership or sole proprietor broker, and all individuals licensed with that broker.
3. Consumer Information Statement” means the Consumer Information Statement on New Jersey Real Estate Relationships as prescribed in (h) below.
4. “Informed consent to dual agency” means the written authorization by a party for the brokerage firm which represents them as their agent in a real estate transaction to also represent the other party to that transaction as an agent. Informed consent can only be obtained after the brokerage firm has disclosed to the consenting party all material facts which might reasonably impact on that party’s decision to authorize dual agency,
including the extent of the conflicts of interests involved and the specific ways in which each consenting party will receive less than full agency representation from the dual agent. In order to obtain informed consent it is also necessary for the licensee to first advise the consenting party of the other business relationships offered by that licensee and of those not offered by that licensee, and of that party’s right to consult an attorney.
5. “Party” shall mean actual or prospective sellers, lessors, buyers or lessees of an interest in real estate.
6. “Short term rental” shall mean the rental of a residential property for not more than the 125 consecutive day time period specified in N.J.S.A. 46:8-19 as constituting the “seasonal use or rental” of real property, under the terms of an oral rental agreement or written lease which contains a specific termination date. Month-to-month tenancies are not considered short term rentals.
7. “Transaction broker” shall mean a brokerage firm which works with both parties in an effort to arrive at an agreement on the sale or rental of real estate and facilitates the closing of a transaction, but does not represent either party, and has no agency relationship with either party to the transaction. The New Jersey Real Estate License Law, N.J.S.A. 45:15-1 et seq., and the administrative rules promulgated thereunder do not mandate that licensees must act as agents when rendering real estate brokerage services.
8. “Business relationship(s)” means real estate licensees working as a seller’s agent; a buyer’s agent; a disclosed dual agent; or a transaction broker.
(b) Prior to acting as a dual agent, a brokerage firm must have the written informed consent of the parties to the transaction. Informed consent is not acquired through distribution of the Consumer Information Statement on New Jersey Real Estate Relationships as required by (e) and (k) below alone. At a minimum, licensees must also secure the signature of the party on a separate writing which confirms the party’s informed consent to the licensee acting as a Disclosed Dual Agent for that party. Such a writing may be part of, or an attachment to a brokerage agreement.
(c) Licensees shall supply information with regard to their working relationship with parties to real estate transactions as provided in this section.
(d) Licensees shall comply with all requirements of this section when involved in:
1. Transactions which involve the sale of residential real estate containing one to four dwelling units or the sale of vacant one-family lots;
2. Residential lease transactions other than short term rentals. However, in short-term rental transactions, licensees shall include in all leases prepared by them a statement indicating