Buyer Agreements and Commissions in New Jersey: What Buyers Need to Know
By Romila Bajaj · October 23, 2026Since 2024, buyers sign a written agreement with their agent before touring homes. Here is what that means for you, in plain English.
The Short Version
- Sign before you tour. Since August 17, 2024, an agent who belongs to a multiple listing service needs a signed, written agreement with you before touring a home together, in person or by live virtual tour. Public open houses are exempt.
- New Jersey law requires it too. Buyer representation agreements are also required under New Jersey state law, and renters working with an agent sign a tenant representation agreement.
- Compensation is spelled out. The agreement must state clearly what your agent will be paid, in an objective amount or rate rather than an open-ended one.
- There is a cap. Your agent cannot receive more from any source than the amount in your agreement.
- Everything is negotiable. Every agreement must say conspicuously that broker compensation is not set by law and is fully negotiable.
What Changed, and Why
The changes came from a 2024 legal settlement involving the National Association of REALTORS®. Before it, buyers often toured homes and made offers before discussing how their agent would be paid, and offers of buyer-agent compensation were posted on the MLS. Now compensation is discussed and agreed in writing up front, and those offers no longer appear on the MLS.
Who Pays the Buyer's Agent?
It depends on what you negotiate. Sellers may still agree to pay some or all of the buyer's agent compensation, often as part of the offer. If the seller covers less than your agreement calls for, the agreement explains how the difference is handled, so there are no surprises. A good agent walks you through the options before you write an offer.
New Jersey's Consumer Information Statement
Separately, New Jersey requires real estate licensees to give buyers and sellers a Consumer Information Statement explaining the different types of brokerage relationships, such as buyer's agent, seller's agent, and disclosed dual agent, at the first substantive discussion about a property.
Tips Before You Sign
- Read the term. Agreements can cover a single home, a few days of showings, or a longer search. Choose what fits.
- Ask what services are included, such as pricing analysis, negotiation, and coordinating inspections and closing.
- Ask how compensation works if a seller offers to pay, and what happens if they don't.
Ask Romila to walk you through any agreement, term by term, before you sign. "She is 100% honest and transparent," one first-time buyer wrote in a Zillow review.
Frequently Asked Questions
Do I have to sign an agreement with a real estate agent to see homes in New Jersey?
Yes, if you want an agent to tour homes with you. Since August 17, 2024, agents who belong to a multiple listing service must have a signed, written agreement with a buyer before touring a home, in person or by live video, and New Jersey state law also requires buyer representation agreements. You can still visit public open houses without one.
Who pays the buyer's agent now?
It is negotiable. Your written agreement states what your agent will be paid. A seller may agree to cover some or all of it as part of your offer, but offers of buyer-agent compensation can no longer be advertised on the MLS.
Can I negotiate my agent's commission?
Yes. Every agreement must state, in conspicuous language, that broker compensation is not set by law and is fully negotiable. The agreement must also cap what your agent can receive from any source at the amount you agreed to.
Sources: NAR settlement practice changes effective August 17, 2024, as summarized by MLS organizations including the New Jersey Multiple Listing Service; New Jersey Real Estate Commission rules. General information, not legal advice.
Want help weighing your options? Romila is happy to talk it through, with no obligation.
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