Out in the field, I’m noticing a growing trend—and not in a good way. Buyers are signing multiple exclusive buyer representation agreements with different agents or brokerages, often without realizing the very real risks they’re taking on. It’s become clear: there’s a serious lack of understanding about what these agreements mean and how the new 2024 NJ real estate laws have raised the stakes.
Here’s what you need to know—short and simple:
The Law Has Changed
As of 2024, New Jersey law requires that real estate agents must have a signed Buyer Representation Agreement in place before showing a buyer a property (with one exception: open houses—those are public, and no agreement is required to attend).
That means the casual days of “just showing homes” without a contract are over. If you want a private showing, the agent legally needs to have a buyer agreement signed before unlocking that door.
What You're Actually Signing
When you sign a Buyer Broker Agreement, you're entering into a legally binding contract. It states that you, as the buyer, agree to compensate that agent/brokerage—whether or not the seller pays them.
Yes, most sellers still offer to cover the buyer agent’s commission. But here’s the catch:
If you’ve signed an agreement, and that agent doesn’t get paid at closing, you’re on the hook.
That’s not the agent being difficult—that’s state law.
What Happens If You Sign More Than One?
Let’s say you’ve signed an agreement with Agent #1… but later decide to write an offer with Agent #2 (who also has you sign an agreement). You close on the home, everything feels great—and then…
You get a demand letter from Agent #1’s brokerage, asking you to pay their agreed-upon commission.
And guess what? They might have every legal right to collect—because you were “in contract” with them at the time.
This Isn’t About Drama—It’s About Clarity
Agents aren’t trying to trick you. But many buyers are treating buyer agreements like throwaway paperwork instead of legally enforceable contracts. This is the equivalent of signing a lease with two landlords—you’re asking for trouble.
How to Protect Yourself
Ask Questions before signing anything.
Understand the expiration date and cancellation terms in the agreement.
Be transparent with your agent if you’ve already signed something with someone else.
Don’t “shop” agents without ending prior agreements.
Final Thought:
Knowledge is power. Know what you’re signing—and what it means—before it costs you money, time, or legal headaches. If you're unsure, ask your agent to walk you through the fine print. A good one will be more than happy to do so.
In a post-2024 real estate world, buyer agency isn’t casual anymore. It’s a contract. Respect it—and protect yourself.
