Buying or Selling a Home in New Jersey: Current Rules and the Pros and Cons of Going Without an Agent

Buying or selling a home in New Jersey involves more than agreeing on a price. Property disclosures, brokerage agreements, agency relationships, inspections, and contract deadlines all affect the transaction.

New Jersey's Real Estate Consumer Protection Enhancement Act, effective August 1, 2024, strengthened disclosure and brokerage requirements. Separate flood-disclosure laws and national real estate practice changes also took effect in 2024.

You can choose to buy or sell without a real estate agent. The question is whether you understand the responsibilities you will handle yourself—and who, if anyone, is representing your interests.

What changed under New Jersey's Consumer Protection Enhancement Act?

The Act addresses seller disclosures, written brokerage agreements, agency relationships, compensation transparency, and open-house notices.

It does not require every buyer or seller to hire an agent. It does require participants and real estate professionals to follow applicable rules.

Sources: Read the enacted Act and NJ REALTORS® guidance.

Sellers must provide a completed, signed property disclosure

Residential sellers must complete and sign a Seller's Property Condition Disclosure Statement. A seller working with a brokerage must provide it to that firm; an unrepresented seller must provide it directly to the buyer before the buyer becomes obligated under a purchase contract.

The completed, signed disclosure should be provided to the buyer before the buyer becomes contractually obligated to purchase the property. This timing matters whether the seller uses a brokerage or sells FSBO.

NJ REALTORS® explains that this requirement includes estates and bank-owned residential properties. An executor who never lived in the home should answer according to actual knowledge and use "unknown" where the form permits it, rather than guess.

A disclosure is not a substitute for an inspection or a guarantee that a house has no defects. It provides information about the property and known conditions.

Selling FSBO does not remove the disclosure requirement. Neither does advertising a home "as-is."

Sources: Act Section 2(e) and NJ REALTORS® guidance.

Flood disclosures are a separate requirement

Beginning March 20, 2024, New Jersey required specific flood-risk disclosures when selling real property. These include FEMA flood-hazard-area information and the seller's actual knowledge of flooding and related matters.

For South Jersey buyers, this matters beyond oceanfront and bayfront homes. An inland property can also experience flooding.

Review the disclosure alongside flood maps, insurance information, inspection findings, and advice from qualified professionals. A property's appearance on a dry day does not tell its full flood history.

Source: NJDEP Flood Disclosure Law.

Buyers working with a brokerage need a written agreement

New Jersey law requires a residential buyer's brokerage agreement before, or as soon as reasonably practical after, the firm begins providing brokerage services to or for that buyer.

Separately, applicable REALTOR®/MLS practice rules require a written buyer agreement before touring a home when the professional is working with the buyer. These national practice rules and New Jersey's statute are distinct requirements.

Before signing, understand:

• The properties or area covered and the agreement's duration.
• Whether the relationship is exclusive.
• The services and representation you will receive.
• The compensation amount or calculation.
• Any amount you could owe if another party contributes less than the agreed fee.
• Termination provisions and any protection period after the agreement ends.
• Whether you consent to dual or designated agency.

Do not assume an agreement ends whenever you decide to stop working together. Read the actual terms.

Sources: N.J.S.A. 45:15-16.88 and NAR buyer guidance.

Do you need a buyer agreement just to attend an open house?

Simply attending an open house on your own does not require you to hire the hosting agent or sign a buyer representation agreement.

A sign-in sheet, agency notice, and representation agreement serve different purposes. Ask what a document does before signing it.

At a brokerage-hosted open house, New Jersey requires notice explaining the host's seller representation, subject to the law's agency exceptions. A friendly conversation does not automatically make the host your agent.

Avoid sharing your maximum budget, urgency, or negotiating strategy with the seller's representative unless you understand how that information may be used.

Sources: Act Section 14 and NAR open-house guidance.

What is the Consumer Information Statement?

New Jersey's Consumer Information Statement, often called the CIS, explains the available real estate brokerage relationships.

Under N.J.S.A. 45:15-16.87(h), a brokerage must provide the statement and obtain a signed acknowledgment of receipt in a residential transaction. For a party receiving brokerage services, it must be provided as soon as reasonably practical and no later than signing the brokerage services agreement. For an unrepresented party in a transaction, it must be provided before the party signs an offer or as soon as reasonably practical afterward.

Acknowledging receipt of the CIS does not, by itself, hire the agent or create a buyer representation agreement. Read the CIS, the separate agency disclosure, and any brokerage services agreement to understand the relationship.

Source: https://pub.njleg.state.nj.us/Bills/2024/PL24/32_.HTM.

Who represents whom?

If you work with a transaction broker, do not assume your maximum budget, minimum acceptable price, motivation, or negotiating strategy receives the same confidentiality protection as information shared with your own agent. Ask about the relationship before sharing sensitive information.

Ask directly: "Are you representing me, representing the other party, or facilitating the transaction?"

Sources: The enacted Act, dual agency, designated agency, and transaction brokerage.

Real estate compensation is negotiable

There is no commission percentage set by New Jersey law. Compensation was negotiable before the 2024 changes; the rules strengthen transparency and written documentation.

Compensation may come from the buyer, seller, a third party, or a sharing arrangement between brokerages. Who pays a fee does not, by itself, determine whom the agent represents.

A seller's contribution toward a buyer's brokerage fee can be negotiated. It is not guaranteed. Buyers should review their potential obligation before making an offer.

Source: N.J.S.A. 45:15-16.96.

Buying without an agent: benefits and tradeoffs

An unrepresented buyer may prefer direct communication, control over the search and offer process, and avoiding an agreement to pay a buyer's brokerage.

However, being unrepresented does not automatically reduce the purchase price or the seller's existing brokerage obligations. Any savings depend on the agreements and negotiations.

An attorney can advise on legal terms. An inspector evaluates the property within the inspection's scope. Neither should be assumed to provide every service normally included in a buyer's brokerage relationship.

Selling FSBO: benefits and tradeoffs

A seller may choose "For Sale By Owner," or FSBO, to control the process and reduce brokerage expenses. It can be workable when the seller has the time, knowledge, and professional support the transaction requires.

The strongest offer is not always the highest price. Financing, deposits, inspections, home-sale contingencies, closing dates, and the likelihood of completion also matter.

"As-is" does not mean "no disclosure"

An as-is sale generally addresses the property's condition and repair obligations. It does not authorize a seller to conceal known hidden material defects.

In Battaglia v. Aversa, a 2023 New Jersey appellate decision, the court upheld a $6,700 judgment against a seller over undisclosed basement flooding history despite an as-is contract.

This unpublished decision predates the 2024 Act and is not binding precedent in other cases. It illustrates the older disclosure principles; it is not a penalty imposed under the new Act.

Source: Battaglia v. Aversa.

Have courts ruled under the new NJ Act?

As of this article's review date, our public-source research has not identified a court decision interpreting or applying the 2024 Act itself. That is not a claim that no lawsuit, pending matter, or unindexed ruling exists.

The disclosure requirement is established by statute. It does not depend on a court first awarding damages in another transaction.

An out-of-state example shows why delivery matters: in Gulf Title Corporation v. Thomas and others (Louisiana, 2025), a court upheld buyers' cancellation and return of a $200,000 deposit because the sellers failed to provide the required disclosure.

The planned sale was in 2023. Louisiana's statute supplied that remedy; the decision does not establish an identical cancellation right in New Jersey.

Source: Read the Louisiana decision.

Other requirements can still affect your sale

The 2024 Act is not a complete closing checklist. Other requirements may include federal lead-based-paint disclosures for most pre-1978 housing and private-well testing for properties covered by New Jersey's Private Well Testing Act.

For covered wells, both parties must receive and review the results and sign the required certification before closing. Ask local officials and your attorney about property-specific certificates, permits, and municipal requirements.

Sources: NJ Department of Health lead guidance and NJDEP private-well requirements.

Frequently asked questions

Questions to ask before moving forward

1. 1 Who represents me, and what duties do they owe me?
2. 2 Which agreements am I signing, and when do they expire?
3. 3 What fees might I owe, and who has agreed to contribute?
4. 4 Have I received the required disclosures?
5. 5 Which inspections and professional advice do I need?
6. 6 Who is tracking each deadline?
7. 7 What happens if a problem arises or a party wants to cancel?

You can have an attorney while remaining unrepresented by a real estate agent. You can also hire both. Decide which responsibilities you can reasonably manage and which require professional help.

Buying or selling in South Jersey?

I help buyers and sellers understand the process, compare their options, and make informed decisions throughout South Jersey, including the Jersey Shore.

Before you sign an agreement or commit to a transaction, let's discuss your goals, the services you need, and how representation and compensation would work.

Derek Doernbach, REALTOR®

Century 21 Action Plus Realty | Your Jersey Shore Team

DerekDoernbach.com

This article provides general educational information, not legal advice or an exhaustive list of transaction requirements. Laws, forms, and practices can change. Consult a New Jersey real estate attorney about your transaction.