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A PRINTABLE VERSION CAN BE FOUND
HERE
CONSUMER INFORMATION STATEMENT ON
NEW JERSEY REAL ESTATE RELATIONSHIPS
In New Jersey, real estate licensees
are required to disclose how they
intend to work with buyers and
sellers in a real estate
transaction. (In rental
transactions, the terms “buyers” and
“sellers” should be read as
“tenants” and “landlords,”
respectively.)
1. AS A SELLER’S AGENT OR SUBAGENT,
I, AS A LICENSEE, REPRESENT THE
SELLER AND ALL MATERIAL INFORMATION
SUPPLIED TO ME BY THE BUYER WILL BE
TOLD TO THE SELLER.
2. AS A BUYER’S AGENT, I, AS A
LICENSEE, REPRESENT THE BUYER AND
ALL MATERIAL INFORMATION SUPPLIED TO
ME BY THE SELLER WILL BE TOLD TO THE
BUYER.
3. AS A DISCLOSED DUAL AGENT, I, AS
A LICENSEE, REPRESENT BOTH PARTIES,
HOWEVER, I MAY NOT WITHOUT EXPRESS
PERMISSION, DISCLOSE THAT THE SELLER
WILL ACCEPT A PRICE LESS THAN THE
LISTING PRICE OR THAT THE BUYER WILL
PAY A PRICE GREATER THAN THE OFFERED
PRICE.
4. AS A TRANSACTION BROKER, I, AS A
LICENSEE, DO NOT REPRESENT EITHER
THE BUYER OR THE SELLER. ALL
INFORMATION I ACQUIRE FROM ONE PARTY
MAY BE TOLD TO THE OTHER PARTY.
Before you disclose confidential
information to a real estate
licensee regarding a real estate
transaction, you should understand
what type of business relationship
you have with that licensee. There
are four business relationships:
1. seller’s agent;
2. buyer’s agent;
3. disclosed dual agent; and
4. transaction broker.
Each or these relationships impose
certain legal duties and
responsibilities on the licensee as
well as on the seller or buyer
represented. These four
relationships are defined in greater
detail below. Please read carefully
before making your choice.
SELLER’S AGENT
A seller’s agent WORKS ONLY FOR THE
SELLER and has legal obligations,
called fiduciary duties, to the
seller. These include reasonable
care, undivided loyalty,
confidentiality and full disclosure.
Seller’s agents often work with
buyers, but do not represent the
buyers. However, in working with
buyers a seller’s agent must act
honestly. In dealing with both
parties, a seller’s agent may not
make any misrepresentations to
either party on matters material to
the transaction, such as the buyer’s
financial ability to pay, and must
disclose defects of a material
nature affecting the physical
condition of the property which a
reasonable inspection by the
licensee would disclose.
Seller’s agents include all persons
licensed with the brokerage firm
which has been authorized through a
listing agreement to work as the
seller’s agent. In addition, other
brokerage firms may accept an offer
to work with the listing broker’s
firm as the seller’s agent. In such
cases, those firms and all persons
licensed with such firms, are called
“sub-agents.” Sellers who do not
desire to have their property
marketed through sub-agents should
so inform the seller’s agent.
BUYER’S AGENT
A buyer’s agent WORKS ONLY FOR THE
BUYER. A buyer’s agent has fiduciary
duties to the buyer which include
reasonable care, undivided loyalty,
confidentiality and full disclosure.
However, in dealing with sellers, a
buyer’s agent must act honestly. In
dealing with both parties, a buyer’s
agent may not make any
misrepresentations on matters
material to the transaction, such as
the buyer’s financial ability to
pay, and must disclose defects of a
material nature affecting the
physical condition of the property
which a reasonable inspection by the
licensee would disclose.
A buyer wishing to be represented by
a buyer’s agent is advised to enter
into a separate written buyer agency
contract with the brokerage firm
which is to work as their agent.
DISCLOSED DUAL AGENT
A disclosed dual agent WORKS FOR
BOTH THE BUYER AND SELLER. To work
as a dual agent, a firm must first
obtain the informed written consent
of the buyer and the seller.
Therefore, before acting as a
disclosed dual agent, brokerage
firms must make written disclosure
to both parties. Disclosed dual
agency is most likely to occur when
a licensee with a real estate firm
working as a buyer’s agent shows the
buyer properties owned by sellers
for whom that firm is also working
as a seller’s agent or sub-agent.
A real estate licensee working as a
disclosed dual agent must carefully
explain to each party that, in
addition to working as their agent,
their firm will also work as the
agent for the other party.
They must also explain what effect
their working as a disclosed dual
agent will have on the fiduciary
duties their firm owes to the buyer
and to the seller. When working as a
disclosed dual agent, a brokerage
firm must have the express
permission of a party prior to
disclosing confidential information
to the other party. Such information
includes the highest price a buyer
can afford to pay and the lowest
price a seller will accept and the
parties’ motivation to buy or sell.
Remember, a brokerage firm acting as
a disclosed dual agent will not be
able to put one party’s interests
ahead of those of the other party
and cannot advise or counsel either
party on how to gain an advantage at
the expense of the other party on
the basis of confidential
information obtained from or about
the other party.
If you decide to enter into an
agency relationship with a firm
which is to work as a disclosed dual
agent, you are advised to sign a
written agreement with that firm.
TRANSACTION BROKER
The New Jersey Real Estate
Licensing Law does not require
licensees to work in the capacity of
an “agent” when providing brokerage
services. A transaction broker works
with a buyer or a seller or both in
the sales transaction without
representing anyone. A TRANSACTION
BROKER DOES NOT PROMOTE THE
INTERESTS OF ONE PARTY OVER THOSE OF
THE OTHER PARTY TO THE TRANSACTION.
Licensees with such a firm would be
required to treat all parties
honestly and to act in a competent
manner, but they would not be
required to keep confidential any
information. A transaction broker
can locate qualified buyers for a
seller or suitable properties for a
buyer. They can then work with both
parties in an effort to arrive at an
agreement on the sale or rental of
real estate and perform tasks to
facilitate the closing of a
transaction.
A transaction broker primarily
serves as a manager of the
transaction, communicating
information between the parties to
assist them in arriving at a
mutually acceptable agreement and in
closing the transaction, but cannot
advise or counsel either party on
how to gain an advantage at the
expense of the other party. Owners
considering working with transaction
brokers are advised to sign a
written agreement with that firm
which clearly states what services
that firm will perform and how it
will be paid. In addition, any
transaction brokerage agreement with
a seller or landlord should
specifically state whether a notice
on the property to be rented or sold
will or will not be circulated in
any or all Multiple Listing System(s)
of which that firm is a member.
YOU MAY OBTAIN LEGAL ADVICE ABOUT
THESE BUSINESS RELATIONSHIPS FROM
YOUR OWN LAWYER. THIS STATEMENT IS
NOT A CONTRACT AND IS PROVIDED FOR
INFORMATIONAL PURPOSES ONLY.
ACKNOWLEDGEMENT OF RECEIPT OF
CONSUMER INFORMATION STATEMENT
FOR
SELLERS AND LANDLORDS
“By signing this Consumer
Information Statement, I acknowledge
that I received this Statement from
Joseph & Johnna Zarroli of Island
Realty Group prior to discussing my
motivation to sell or lease or my
desired selling or leasing price
with one of its representatives.”
Signed
_________________________________________
Date
________________________
DECLARATION
OF BUSINESS RELATIONSHIP
We, Joseph C Zarroli & Johnna M.
Zarroli, as authorized
representatives of Island Realty
Group intend, as of this time, to
work with you as a:
(indicate one of the following)
_____ seller’s agent only
_____ buyer’s agent only
_____ seller’s agent and
disclosed dual agent if the
opportunity arises
_____ buyers agent and disclosed
dual agent if the opportunity arises
_____ transaction broker only
_____ seller’s agent on properties
on which this firm is acting as the
seller’s agent and -_____
transaction broker on other
properties
Date:_________________________________
Property:
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