Designated Realtor ® ISSUE 4
What’s Happening at the Association
$540,000
Year-to-Date Single-Family Median Sales Price
$60,700
Awarded to 38 Students by NJ Realtors® Educational Foundation
1,400
In-Person and Virtual Statewide Broker Briefing Attendees
What’s Happening in the Industry Are your agents concerned about how practice changes will affect their business? Learn how to discuss these changes and support your agents during the transition. The New Jersey Real Estate Commission formally adopted a rule allowing commission payments to be made to Limited Liability Companies, as initiated by New Jersey Realtors® and signed by the governor. However—this rule will not go into effect until six months after it is published by the New Jersey Register, which will be sometime in 2025. Click here to read the adopted rule. The National Association of Realtors® 2024 Snapshot of Race & Homebuying in America is out now. According to the report, Asian American homeownership was highest among minority groups at 63.3%. Read the report to explore homeownership trends among racial groups, affordability challenges, and factors affecting homeownership. The Department of Veterans Affairs’ new temporary policy change, allowing military homebuyers to directly compensate their real estate agents, is effective beginning Aug. 10. The policy change follows extensive advocacy by the National Association of Realtors® to change the department’s previous rule prohibiting VA borrowers from paying a “brokerage fee or commission in connection with the services” of a real estate professional. Learn more about the temporary policy.
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AUGUST 2024
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NJREALTOR.COM
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LEGISLATIVE UPDATES
Real Estate Consumer Protection Enhancement Act Takes Effect Aug. 1 The Real Estate Consumer Protection Enhancement Act takes effect today, Aug. 1. The law strengthens protections and transparency for both consumers and real estate licensees. It mandates the use of the Seller’s Property Condition Disclosure Statement, requires disclosure of representation at open houses, allows for designated agency, mandates brokerage services agreements, and adds agency as a mandatory continuing education topic. Learn more at njrealtor.com/cpea.
Huge Win for Independent Contractors What Was the Case About? In the case of James Kennedy, II vs. Weichert Co., it was considered whether the independent contractor agreement between a broker and a salesperson excludes the salesperson from the Wage Payment Law (WPL), a statute that governs compensation for employees but does not apply to independent contractors. The New Jersey Supreme Court recently ruled in favor of New Jersey Realtors®, reversing and remanding the case to the trial court with an order to dismiss Kennedy’s complaint. The Court decided that Kennedy, “…who agreed in writing to affiliate with Weichert as an independent contractor, must accordingly be treated as an independent contractor.” The court held that the written agreement is dispositive, meaning they must be honored even if they conflict with other laws or regulations, and defines the relationship between the broker and salesperson. How Does This Impact Me? This ruling allows brokerage firms to classify agents as either independent contractors or employees. This case represents a significant
win for the real estate industry in New Jersey, providing brokers with greater flexibility in structuring business relationships. How Does This Impact How My Agents Operate? The ruling impacts agents by upholding the independent contractor status under the WPL. The decision upholds the right for brokers and salespersons to enter into independent contractor or employee agreements, allowing their agents to be managed as independent contractors or employees. What’s the Background on This Victory? This decision is the result of a multi-year, multi-pronged lobbying effort led by New Jersey Realtors® to protect the independent contractor status of real estate licensees. This effort began in 2017, aimed to change the New Jersey Real Estate Commission regulations to identify independent contractors under a brokerage firm. It was then codified into law in 2018 by Gov. Murphy, and a 2021 law ensured retroactivity.
BUILDING CONNECTIONS
Help Your Office’s Community Volunteers Win Up to $2,500 for Charity Do you have agents making a positive impact in their community? If you know someone in your office who is an active volunteer, nominate them for the 2024 New Jersey Realtors® Good Neighbor Award or encourage your active volunteers to apply. New Jersey Realtors® Good Neighbor Award recognizes three outstanding Realtors® or Realtor-Associates® making a positive impact, whether through neighborhood cleanups, charitable donations, nonprofit collaborations, and more. Winners receive grants: $2,500 for first place, $1,500 for second, and $1,000 for
third, benefiting their chosen 501(c)(3) charity or organization. Award winners are also acknowledged in the January/February issue of New Jersey Realtor® Magazine, celebrated during the annual awards ceremony at Realtors® Triple Play in December, highlighted on our social media, and more. Don’t let your agents miss out on this opportunity to be recognized for their community service efforts—applications must be submitted by Sept. 6. Submit your application.