Written Buyer Agreements in NJ: When You Need One and What It Must Say
The short answer: In a New Jersey residential deal, a brokerage firm must sign a written brokerage services agreement with a buyer "before, or as soon as reasonably practical after," it starts providing brokerage services to that buyer (P.L.2024, c.32, s.3.b(1)). Without one, the firm can't be paid (s.11.g). Separately, MLS policy adopted after the NAR settlement has required agents working with a buyer to sign a written agreement before the buyer tours a home since August 17, 2024 (NAR settlement FAQ).
So in practice the paperwork comes early. Here's what the agreement has to contain and when it isn't needed.
Do NJ buyers have to sign before seeing homes?
There are two rules here, and they come from different places.
| Rule | Source | When the agreement is due |
|---|---|---|
| New Jersey law | P.L.2024, c.32, s.3.b(1) | Before, or as soon as reasonably practical after, the firm starts providing brokerage services to the buyer (residential deals) |
| MLS policy after the NAR settlement | NAR settlement FAQ, Q73-74, Q84 | No later than before the buyer "tours a home," unless state law requires it earlier |
NAR's FAQ defines touring as the buyer or agent entering the house, including an agent going in to give a live virtual tour. A "home" there means a property with one to four dwelling units (NAR settlement FAQ, Q74).
The MLS policy is a trade-association rule enforced by MLSs, not a New Jersey statute. If your firm belongs to an MLS, plan to meet whichever deadline comes first, and ask your broker how the office handles it.
What must a NJ buyer agreement include?
The 2024 law lists the required contents (s.3.b(2)):
| Item | What it covers |
|---|---|
| Term | How long the agreement lasts, plus any protection period after it ends for homes the firm showed the buyer |
| Appointment | That the firm is appointed as the buyer's agent |
| Exclusive or not | Whether the agency is exclusive or nonexclusive |
| Dual or designated agency | Whether the buyer consents, with a separate initial or signature if they do |
| Compensation | The firm's pay, how it's calculated, and whether it may be shared with another firm |
| Negotiability | A statement that broker compensation is "fully negotiable and not set by law" |
Two more items come from section 2 of the law. The firm's role must appear in a paragraph titled "Agency Disclosure", or in a separate signed writing with that title (s.2.i). The Consumer Information Statement must be included as part of the agreement, with a signed acknowledgment of receipt (s.2.h). NJREC tells licensees to use the revised statement attached to Bulletin 24-11.
What if the seller isn't paying the buyer's agent?
The agreement has to deal with this up front. If no other party offers to pay the buyer's firm, or offers less than the buyer agreed is due, the agreement must say whether the buyer pays the difference. If not, it must say how to proceed. One option the law names is telling the agent not to show homes where the seller offers less (s.11.g(2)).
The NAR policy adds that the compensation in a buyer agreement must be objectively ascertainable and not open-ended. "Whatever the seller is offering" or "between X and Y percent" won't work (NAR settlement FAQ).
Under New Jersey law, a firm's pay can come from the seller, the buyer, a third party or a shared commission. Any compensation agreement must be in writing and signed by the seller or buyer as applicable (s.11.a).
Does an open house visitor have to sign one?
No. NAR's FAQ says an agent hosting an open house only for the seller isn't "working with" the visitor, so no buyer agreement is required (Q77). NJREC's bulletin adds that an unrepresented buyer doesn't have to sign a Consumer Information Statement acknowledgment just to view a property at an open house (Bulletin 24-11). The required open-house sign tells visitors the host represents the seller (s.14).
When is no buyer agreement needed?
- Commercial buyers. The law says an agreement isn't required with a buyer in a commercial transaction (s.3.b(1)).
- Limited services. A firm can be paid without an agreement for a broker's price opinion, a comparative market analysis, or a referral when it provided no other brokerage services (s.11.h).
- Tenants are not an exception. The law's definition of "buyer" includes a prospective tenant (s.1), so residential rentals are covered too.
How does a buyer agreement end?
It ends at the earliest of completion, expiration of the agreed term, mutual agreement, or written notice as the agreement allows. Ending it by mutual agreement or notice needs written confirmation. Termination doesn't erase either side's contract rights (s.10.a-b). If the firm was a disclosed dual agent, ending early takes a writing signed by the buyer with confirmed delivery (s.10.d).
What should a new agent do?
- Use your firm's form. Your broker decides which agreement the office uses.
- Explain it before the first tour, including the term, exclusivity, pay and the shortfall clause.
- Get a fresh signature when terms change, and keep the signed Consumer Information Statement with the file.
- Watch your ads. An ad that mentions a commission rate or compensation amount must say "In New Jersey, broker compensation is fully negotiable and not set by law" (N.J.A.C. 11:5-6.1(q), as amended Jan 20, 2026).
For how agreements fit with the other business relationships, see what changed in NJ licensing law, disclosed dual agency and the seller-side listing agreement types. Agency basics are in our agency guide for the exam.
If you're not licensed yet, Business Elementary's 75-hour pre-licensing course is the first step.
Sources
- P.L.2024, c.32 (sections 1, 2, 3, 10, 11 and 14): https://pub.njleg.state.nj.us/Bills/2024/PL24/32_.PDF
- NJ Department of Banking and Insurance, Bulletin No. 24-11 (Aug 1, 2024): https://www.nj.gov/dobi/bulletins/blt24_11.pdf
- N.J.A.C. 11:5-6.1(q), as amended by R.2026 d.020, effective Jan 20, 2026 (58 N.J.R. 816): https://www.nj.gov/dobi/proposed/aa260120njac11_5.pdf
- National Association of REALTORS®, NAR Settlement FAQs (PDF, updated Sept 5, 2024; file dated Oct 29, 2024): https://www.nar.realtor/sites/default/files/2024-10/nar-settlement-faq-2024-10-29.pdf
Last reviewed: October 30, 2026
Frequently Asked Questions
Does a NJ buyer agreement have to be exclusive?
No. It must state whether the agency relationship is exclusive or nonexclusive (P.L.2024, c.32, s.3.b(2)(c)).
Is the buyer's agent commission set by law in New Jersey?
No. The agreement must include a statement that broker compensation is fully negotiable and not set by law (s.3.b(2)(g)).
Can a buyer agreement cover just one home or a short period?
NAR's policy doesn't dictate the term, giving "one day, one month, one house" as examples (NAR settlement FAQ, Q75). NJ law requires the agreement to state its term (s.3.b(2)(a)).
Do renters need to sign a buyer agreement in NJ?
The law defines "buyer" to include a prospective tenant, so the residential agreement requirement applies to rentals too (s.1, s.3.b).
Who pays the buyer's agent under a NJ agreement?
It can be the seller, the buyer, a third party or a shared commission. The agreement must say what the buyer owes if no one else pays, or pays less (s.11.a, s.11.g(2)).