Real Estate Consumer Protection Enhancement Act (CPEA)

& NAR Practice Changes

CPEA & NAR Practice Changes Resources

All the information you need to do business in the post-NAR settlement real estate industry.

We’ve established a valuable information hub to keep you informed about the Real Estate Consumer Protection Enhancement Act (CPEA) and the NAR practice changes with resources from the National Association of REALTORS®, New Jersey REALTORS®, and Bright MLS.

Review the information and utilize the resources available to ensure compliance and to protect your organization. The information on this page will be updated as it becomes available, and we suggest you revisit it for frequent updates.

What Should I Know?

In July 2024, Governor Murphy signed Bill S3192/A4454, also known as the Real Estate Consumer Protection Enhancement Act, into law. The CPEA, which strengthens protections and transparency for consumers and real estate licensees, took effect on August 1. The law requires brokerage services agreements, mandates the Seller’s Property Condition Disclosure Statement, introduces designated agency, and more.

Where Can I Learn More?

Visit njrealtor.com/cpea and download the document that briefly explains the law and specifics about the types of agency. Visit the FAQs to the CPEA page here – you will need to scroll down the page to view the FAQs. Read the Bill here. The New Jersey Real Estate Commission issued Bulletin No. 24-11 to provide guidance to real estate licensees regarding the requirements of the Real Estate Consumer Protection Enhancement Act. View the bulletin here. For information about the Antitrust Lawsuit, visit NJ REALTORS® Antitrust Updates page here.

The main provisions of the new law include, but are not limited to, the following new mandates and allowances:

Seller’s Property Condition Disclosure Statement Now Required
Designated Agency Now Allowed
Brokerage Services Agreements Required
Signage Required at Open Houses
Compensation Disclosure Changes in Multiple Listing Services
New CE Requirement Added

(Download the one-sheet page on the right side that includes more information.)

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Forms

NJ Residential Listing Agreement (Updated September 16, 2024)

To comply with the terms of both the August 1 enactment of the CPEA and the National Association of REALTORS® (NAR) anti-trust settlement, MJAR – through its legal counsel – has revised the MJAR Listing Agreement as of August 16, 2024. This form is not required to be used by MJAR members for listing agreements.

Download the document here. (This form is not yet available on ZipForms. We will let our members know when the form is available on ZipForms.)

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Consumer Information Statement (CIS) Document
Download the CIS document here.

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To comply with the Real Estate Consumer Protection Enhancement Act (CPEA), New Jersey REALTORS® launched new and revised forms in the zipForms library.

What are the New Forms?

Addendum to Agency Agreement

Form 130A: Informed Consent to Designated Agency (Buyer)
Form 130B: Informed Consent to Designated Agency (Seller)
Form 131A: Informed Consent to Designated Agency (Tenant)
Form 131B: Informed Consent to Designated Agency (Landlord)
Form 144: Non-Exclusive Tenant Agency Agreement
Form 148: Cooperating Broker Compensation Agreement

Which Forms Were Revised?

Form 120: Non-Exclusive Buyer Agency Agreement
Form 121: Exclusive Buyer Agency Agreement
Form 126: Exclusive Tenant Agency Agreement
Form 128: Exclusive Buyer Agency Agreement with Rebate Provision
Form 129: Non-Exclusive Buyer Agency Agreement with Rebate Provision
Section 29 and Section 30 of NJ Realtors® Form 118: Contract of Sale

Visit the zipForms library to download these and other forms.

Webinars & Training Sessions

2024 Broker Briefing Panel Discussion (Recording)
On July 25, Jarrod Grasso, Barry Goodman, Conor Hennessey and Yuliya Tedeschi discuss the Buyer Agency Agreements, including the Real Estate Consumer Protection Enhancement Act, and the Independent Contractor Status. View the video recording here.

Agency Explained

Videos by New Jersey REALTORS®

Understanding the New Consumer Information Statement

In accordance with the Consumer Protection Enhancement Act (CPEA), the NJ RE Commission issued a revised Consumer Information Statement (CIS). It includes a new real estate business relationship called designated agency, and now the CIS must be signed in certain contexts. Watch the short video here with NJ REALTORS® General Counsel Yuliya Tedeschi to learn more.

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Overview of the Real Estate Consumer Protection Enhancement Act

The CPEA strengthens protections for consumers and real estate licensees. Watch the video here for a breakdown of the law covering:
-Property Condition Disclosure Statements
-Brokerage Services Agreements
-Designated Agency
-Open House Representation Signage
-Cooperative Compensation

Download Customizable Open House & Disclosure Signage

Download Customizable Open House Signage: The new law requires listing agents to explicitly disclose who they represent at open houses. Download the open house disclosure sign or click here to customize your sign.

Important Changes to NJ CE Requirements

Starting August 1, as part of the CPEA, one course on the topic of agency will be added to the New Jersey Real Estate Commission’s continuing education requirements for license renewal. Further details on this new requirement will be announced soon from the REC.

NAR Lawsuit Settlement Resources

Dos and Don'ts When Working With Sellers - NEW RESOURCE 10/28/24

This resource will help you implement the practice changes and empower you to transact business consistent with the settlement, your ethical duties, and in the best interest of consumers. It is meant to clarify business practices allowed under the settlement and those that are not permitted. NAR members should not engage in the practices that are “don’ts” in this guide.

The consequences for failing to abide by the terms of the proposed settlement may be severe—including losing your released status under the settlement and losing NAR membership. Regardless of your NAR membership status, if you fail to abide by the settlement terms, you can lose MLS access or even face possible legal liability.

View the PDF here of important dos and don’ts to observe when working with sellers.

Conspicuous Statement About the Negotiability of Commissions

To comply with the National Association of REALTORS® proposed settlement agreement, licensees working with sellers and buyers must disclose in conspicuous language that broker commissions are not set by law and are fully negotiable.

In addition to including this disclosure in brokerage services agreements (i.e., listing agreements and written buyer agreements), the conspicuous statement must also be included on all pre-closing disclosure forms that pertain to broker representation services, or if the form is government-specified, be accompanied by a document containing the conspicuous statement.

The following examples of pre-closing disclosure forms must contain the conspicuous statement:

Consumer Information Statement
Informed Consent to Disclosed Dual Agency
Informed Consent to Designated Agency

Where Can I Find the Forms?

New Jersey REALTORS® has a pre-closing disclosure form addendum regarding the negotiability of commission on zipForm, which can be used to accompany any pre-closing disclosure form that does not currently include the conspicuous statement. Visit the zipForm library.

New Jersey REALTORS® has updated the CIS to include the conspicuous statement and is working on updating all other pre-closing disclosure forms to comply with this new requirement.

Summary of MLS Policy Changes

View a summary of MLS policy changes here.

**View NAR Windows to the Law videos explaining various elements of the Settlement, new Practice Changes and MLS Rules.**

View all the Windows to the Law: Settlement Facts videos here.

Bright MLS

Five things all REALTORS® must do to comply with the NAR Settlement

Bright’s new rules and policy updates have launched. Here’s what has changed:

The 21-day limit has been removed. Listings are able to be added to the Coming Soon status for an unlimited time. An expected on-market date is still required, and no showings can be held while a listing is in this status. See how this works with our Yes/No Flow Chart. Watch the video here.

All compensation fields have been removed from Bright, per NAR settlement terms that prohibit any mention of compensation/commission anywhere in the MLS, including remarks and other freeform text fields, photos, documents, showings platform, etc. Immediate fines will be assessed if this information is found. Watch the video here.

The MLS Entry Date must be within 2 days of the listing term beginning, which is the first date any potential buyer may learn about the property. View the video here.

This form is required for use with all clients in order to ensure NAR disclosures are shared with clients and to clarify marketing opportunities and MLS rules. View the video here.

We have made some adjustments to the optional seller concession fields, including removing the dollar/percentage fields at listing entry and streamlining the final concession fields at close. Get the details at BrightMLS.com/Concessions. View the video here.

To help you stay compliant with the settlement terms, we have incorporated an automatic language checker into Listing Management that will flag words and phrases that indicate potential NAR violations. You will see a warning message that will highlight words that are not allowed under the NAR settlement.

New Bright MLS & NAR Settlement Updates (Recording)

To ensure that Bright MLS and its subscribers remain in compliance with the NAR settlement terms, Bright has launched a new set of rules and policy updates. View the webinar recording with Bright MLS Legal Counsel Brian Schneider and EVP of Customer Engagement Rene Galicia, who discussed changes underway.

Five Things All REALTORS® Must Do to Comply with the NAR Settlement

Bright MLS' New Rules, Updates, and Forms

View Bright’s updated rules, policies and forms here.

Upcoming Bright Trainings

Change can be challenging, but Bright is here to help you navigate the new rules and requirements imposed by the NAR settlement and continue to thrive in this ever-evolving industry. Sign up for one of the upcoming training webinars here (choose from an array of days and times).

Bright MLS FAQs

View some of the top questions colleagues have asked regarding Bright MLS’ new rules and policy updates here.