Administration and risk management are critical components of the real estate industry. These functions, which include complying with state and federal laws, addressing safety concerns, and properly following employment tax responsibilities, must be carefully managed.
These resources provided to members of NJ Realtors® function as reference points for business management and real estate industry related regulations.
Please be advised Attorney General Gurbir S. Grewal and Division on Civil Rights Director Rachel Wainer Apter issued an updated legal memorandum, Letter to Property Owners. This updated and expanded memorandum, dated October 7, 2020 supersedes previous letters. By rule of the New Jersey Real Estate Commission, N.J.A.C. 11:5-6.4(j),this memorandum, outlining the New Jersey Law Against Discrimination, must be provided by real estate licensees to owners at the time of taking any residential listing. The letter is available on the New Jersey Division on Civil Rights’ website.
As necessary, governing bodies on both the federal and state level, such as the New Jersey Division of Consumer Affairs, Federal Communications Commission and the U.S. Department of Housing and Urban Development, will create or revise legislation relating to the real estate industry and home ownership. As Realtors®, it is vital to stay up-to-date on the most recent regulations to best serve clients.
Here's some of the most pertinent legislation you should know about.
Bulk Sales Update
During his last full day as governor on Jan. 15, Gov. Chris Christie signed S-2839 into law, which amended New Jersey's bulk sale requirements. In 2011, New Jersey Realtors® worked to have a new law adopted to ensure that individuals, estates, and trusts purchasing 1- family homes, condos, co-ops, and seasonal rental properties would be exempt from bulk sales notification requirements. This ensured these real estate transactions were not unnecessarily delayed, as long as they were not an LLC or other corporate entity. S-2839 now clarifies that bulk sales notification requirements do not apply to properties owned jointly by more than one individual, estate, or trust –– like an unmarried couple or siblings. The new law took effect immediately and is retroactive to Aug. 1, 2007.
Below you will find the changes New Jersey Realtors® made to the Standard Form of Real Estate Sales Contract, Form #118, to reflect S-2839.
- Changes to line 463/464 are in bold: "The Law does not apply to the sale of a simple dwelling house, or the sale or lease of a seasonal rental property, if Seller is an individual, estate or trust, or any combination thereof, owning the simple dwelling house or seasonal rental property as joint tenants, tenants in common or tenancy by the entirety."
- The date on the bottom of all pages is now Jan. 2018.
The New Jersey Realtors® Library of Forms can be found through ZipForm Plus which is a free service for members of New Jersey Realtors®. Click here to access ZipForm Plus. You can also access Form Simplicity, which is available for purchase for members, by clicking here.
The safety of our members is extremely important to New Jersey Realtors®. We encourage Realtors® to enhance their safety plans for the offices and independent business activities. Learn more about how you can stay safe.
New Jersey Realtors® has partnered with Realtor® Safe Harbor, a web and mobile application that makes it easy for members to find safe locations to meet new clients before going to a property.
Members or local boards/associations involved in a lawsuit on matters affecting the rights of all real estate licensees or the real estate industry as a whole can apply for legal assistance from the Legal Action Fund.
Realtors® have a professional and legal obligation to protect the identities of their clients in all business transactions. As part of New Jersey Realtors® Member Perks program, New Jersey Realtors® members are entitled to a special offer and 10% off of LifeLock, an industry leader in identity theft protection.
Education and personally speaking with all parties involved in a real estate transaction are your best tools to avoid being a victim of cyber fraud. Learn more about it and how to protect yourself and your clients with these resources:
- Alert for Buyers- https://www.nar.realtor/videos/video-wire-fraud-alert-for-buyers
- Email Template- https://www.nar.realtor/law-and-ethics/wire-fraud-email-notice-template
- Data Security and Privacy Toolkit, created by the NAR Legal Team
- Wire Fraud Notice- The New Jersey Realtors® has developed a risk management tool, Wire Fraud Notice, to give to your clients in a real estate transaction. The notice is an educational piece to bring awareness of wire fraud, the risks involved, and ways to protect yourself and your clients from being victims.
The information in this section serves as a year-round resource to assist you with your employment tax questions. Additionally, learn how our Member Perks partner, Taxbot, can help you with your taxes.