Why Do I Have to Sign a Contract Just to See a House in NJ?

It has been two years since New Jersey fundamentally changed the rules for homebuying, but the confusion hasn't gone away.

If you are looking for a home in NJ today, you will still encounter the same frustrating hurdle: You call a real estate agent to schedule a viewing, but before they agree to meet you at the property, they send you a document and say, "I need you to sign this buyer agency agreement first."

Even though this law has been in effect since August 2024, many buyers—especially those moving from states with different rules—still get suspicious. Is the agent just being pushy? Are they trying to lock you in before you've even met them?

No. The agent is just following the law.

The NJ Real Estate Consumer Protection Enhancement Act mandates that real estate licensees must enter into a written brokerage agreement with a buyer before they provide any brokerage services—which includes showing a home, whether in person or virtually.

It's not new anymore, but it is the reality of buying in NJ. It is crucial you understand what you are signing, because these agreements directly affect your bottom line at closing.

The Big Financial Risk: Buyer Commission Liability

This is the most important part that buyers still often misunderstand.

In the distant past, it was almost universally assumed that the seller paid the commissions for both their listing agent and the buyer's agent out of the sale proceeds.

Today, the Buyer Agency Agreement you sign will specifically state the compensation your agent expects to receive (e.g., a percentage of the sale price or a flat fee).

Here is the risk: While many sellers still offer compensation to buyer's agents, they are no longer required to offer a set amount, or any amount at all.

If you sign an agreement stating your agent will be paid 2.5%, and you buy a house where the seller is only offering 1% (or nothing at all), you, the buyer, may be contractually obligated to pay the difference out of your own pocket at closing.

You can no longer assume the seller is picking up the tab. You need to know what you are agreeing to pay before you sign.

A Culture Shock for NY Buyers

For my clients moving from Staten Island or elsewhere in New York to New Jersey, this is often a continued culture shock. While New York practice has also shifted, New Jersey state law is explicit and strictly enforced.

If you are planning a cross-state move, the differences between the two systems go well beyond buyer agency agreements. See the complete guide to selling in Staten Island and buying in New Jersey for a full picture of what to expect on both sides of the transaction.

Do not get angry at the NJ agent asking for the signature; they are required to do it to protect their license.

Don't Treat It Like Boilerplate

Because these agreements now carry direct financial liability for buyers, you cannot treat them like "terms and conditions" on a website that you blindly scroll past and click "accept."

These are legally binding contracts. You need to pay attention to:

1. The Commission Amount: Is it negotiable? What happens if the seller doesn't pay it?
2. The Duration: Are you locking yourself to this agent for six months, or just for this one specific property showing?
3. Exclusivity: Are you agreeing that you cannot work with any other agents in that whole geographical area?

The Solution: Get Legal Advice Earlier

In the old days, buyers often waited until they had an accepted offer to hire a real estate attorney. In this environment, that may be too late.

If you are being asked to sign a Buyer Agency Agreement that locks you into an exclusive relationship or obligates you to pay a commission, it is wise to have an attorney review that document *before* you sign it. You need to ensure the terms are fair and that you aren't signing a long-term exclusive contract just to see one open house.

Once you have an accepted offer, New Jersey's attorney review period gives you and your attorney a window to negotiate contract terms — but that window does not cover the buyer agency agreement you signed before the offer. For a breakdown of how attorney review actually works, see The New Jersey 3-Day Attorney Review Period: Five Common Myths.

For a full overview of what a buyer's attorney does from contract to closing in New Jersey, see Do You Need a Lawyer When Buying a House in New Jersey?.

If you are looking to buy in New Jersey and need guidance on these agreements and the closing process, contact Pete Weinman.