Governor Corzine also signed A-373, sponsored by Assemblyman Patrick Diegnan (D-18) and Senator Nicholas Scutari (D-22). This new law permits rebates to be provided to consumers in real estate transactions. Although the law took effect immediately upon signing, the Real Estate Commission must adopt new regulations necessary to implement this law, thereby allowing licensed brokers to offer rebates without contradicting the REC regulations.
NJAR® has adamantly opposed this measure since it was first introduced in the Legislature in 2006. However, demands by the U. S. Department of Justice and other consumer groups led NJAR® to work with the sponsors of this law in order to secure amendments included in the final version of the bill signed by Governor Corzine this morning.
NJAR®'s amendments to A-373 state that only brokers can offer rebates to those buying property, rather than allowing all real estate licensees to offer rebates to buyers and sellers, as the original version of A-373 would have allowed. In addition, the amendments provide greater consumer protections, including mandating that rebates can only be in the form of a credit or check, and requires that rebates be documented in a contract at the beginning of a brokerage relationship in a written or electronic form or in a buyer agency agreement. NJAR® also ensured that this measure only pertains to contracts for purchases of residential property.
More details on this law can be found on www.njar.com as they become available.