Key Takeaways
- The Consumer Information Statement is the primary disclosure document and must be signed by consumers
- Listing agreements and buyer representation agreements must be in writing
- Agency disclosure must occur before confidential information is shared
- All disclosure forms must be retained for at least 6 years
- Failure to provide proper disclosures can result in disciplinary action
Last updated: January 2026
Agency Disclosure Requirements in New Jersey
New Jersey has specific requirements for when and how agency relationships must be disclosed.
Required Disclosure Documents
Consumer Information Statement (CIS)
The CIS is the primary disclosure document:
| Requirement | Detail |
|---|---|
| Who provides | All licensees |
| When provided | First substantive contact |
| Who signs | Consumer (buyer or seller) |
| Copies | One for consumer, one retained |
| Retention | 6 years |
Content of CIS
The Consumer Information Statement includes:
- Explanation of agency relationship types
- Duties owed in each relationship
- How licensees are compensated
- Consumer rights
- How to file complaints
Failure to Provide CIS
If a licensee fails to provide the CIS:
- Violation of license law
- Subject to disciplinary action
- Transaction may still be valid
- Creates liability exposure
Brokerage Agreements
Listing Agreements
| Element | Requirement |
|---|---|
| Form | Written and signed |
| Duration | Specified term |
| Commission | Clearly stated |
| Services | Described in detail |
| Termination | Conditions specified |
Buyer Representation Agreements
| Element | Requirement |
|---|---|
| Form | Written and signed |
| Scope | Property types and areas |
| Duration | Specified term |
| Compensation | How agent is paid |
| Exclusivity | Whether exclusive or not |
Timing of Disclosures
Before Confidential Information
Agency disclosure must occur BEFORE:
- Client shares confidential information
- Financial details are discussed
- Negotiation strategy is revealed
- Price limits are disclosed
At First Substantive Contact
Provide CIS when discussing:
- Specific property features
- Buyer's needs and wants
- Seller's motivation
- Financial qualifications
- Market conditions for specific property
Not Required Until Substantive Contact
CIS is NOT required for:
- Casual conversation at open house
- General market information
- Advertising inquiries
- Website visits
Documentation and Record Retention
Record Keeping Requirements
| Document | Retention Period |
|---|---|
| Consumer Information Statement | 6 years |
| Listing agreements | 6 years |
| Buyer representation agreements | 6 years |
| Transaction files | 6 years |
| Trust account records | 6 years |
Broker Responsibility
The supervising broker must:
- Ensure all disclosures are made
- Maintain copies of all documents
- Train licensees on requirements
- Monitor compliance
Advertising and Agency Disclosure
In Advertising
- Licensee's broker must be identified
- Cannot imply more authority than held
- Must be truthful and not misleading
- Team names must include broker identification
Online Disclosures
For online communications:
- Agency relationships still apply
- CIS may be provided electronically
- Electronic signatures accepted
- Records of electronic disclosures required
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Test Your Knowledge
How long must New Jersey licensees retain the Consumer Information Statement and other transaction documents?
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Test Your Knowledge
What happens if a New Jersey licensee fails to provide the Consumer Information Statement?
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