Understanding Seller Representation in PA and NJ
The rules changed in 2024 — including how listing agents disclose compensation, what's required in your listing agreement, and what you must disclose about your property. We've pulled the actual law together in one place — every claim cited to its source.
WHAT CHANGED IN 2024
A nationwide shift in how sellers and listing agents disclose compensation.
The 2024 NAR settlement reshaped what can appear in the MLS, how listing agents disclose compensation, and what authorization sellers must give before any payment to a buyer's broker. Here's the language straight from the source.
"As of August 17, 2024, offers of compensation are no longer allowed on MLSs. However, offers of compensation can still be made off-MLS and shared through common marketing vehicles such as flyers, signs, emails or other communication mechanisms."
— NAR Consumer Guide: Offers of Compensation
"It is up to you to determine if making or authorizing an offer of compensation is the best approach for selling your property."
— NAR Consumer Guide: Listing Agreements
"Unless inconsistent with state or federal law or regulation, all MLS Participants working with a buyer must enter into a written agreement with the buyer prior to touring a home."
— NAR Policy Statement 8.13
Source: NAR Summary of 2024 MLS Changes
CHOOSE YOUR STATE
We cover both sides of the bridge — and the rules differ on each side.
Pennsylvania and New Jersey each have their own laws on listing agreements, required disclosures, and the forms agents use. Select your state to see what applies.
THE RULES IN PENNSYLVANIA
Selling in Pennsylvania.
Six things the law and lender guidelines require when you list your home.
The Pennsylvania Consumer Notice
Before any substantive real estate discussion, Pennsylvania law requires licensees to provide a written Consumer Notice explaining the different business relationships available. As a seller, you'll receive this notice before signing a listing agreement.
"Prior to entering into any business relationship with a consumer, a licensee shall provide a disclosure summary on a form which shall be substantially the same in style and content as the form prescribed in this section."
— 49 Pa. Code § 35.336(a)
The Listing Agreement — what it must contain
Pennsylvania law sets specific requirements for what every listing agreement must include — including the date, the term, the broker's services, and a description of the property.
"All contracts, commitments and agreements between a broker, or a licensee employed by the broker, and a principal or a consumer who is required to pay a fee, commission or other valuable consideration shall be in writing."
— 49 Pa. Code § 35.331(a)
Source: 49 Pa. Code § 35.331
For exclusive listings specifically, additional terms are required by 49 Pa. Code § 35.332 — sale price, the commission expected, the duration of the agreement, and bold-face language stating that the broker earns a commission on the sale during the listing period regardless of who brings the buyer.
Compensation is written, negotiated, and not set by law
Under Pennsylvania law, your listing agreement must disclose that the broker's commission and the duration of the agreement were determined through negotiation between the broker and the consumer.
"Notification that the broker's commission and the duration of the agreement have been determined as a result of negotiations between the broker and the consumer."
— 49 Pa. Code § 35.331(a)(3)
Source: 49 Pa. Code § 35.331
NAR's consumer guidance reinforces the same point: offering to compensate a buyer's agent is your choice, not a requirement.
"It is up to you to determine if making or authorizing an offer of compensation is the best approach for selling your property."
— NAR Consumer Guide: Listing Agreements
Cooperation with buyer's agents
Pennsylvania law requires your listing agreement to address cooperation with buyer's agents and to disclose that a buyer's agent — even one paid by the listing broker or by you — represents the buyer's interests, not yours.
"In an agreement between a broker and a seller/landlord, a statement regarding cooperation with subagents and buyers agents, a disclosure that a buyer agent, even if compensated by the listing broker or seller/landlord will represent the interests of the buyer/tenant and a disclosure of any potential for the broker to act as a dual agent."
— 49 Pa. Code § 35.331(a)(7)
Source: 49 Pa. Code § 35.331
Exclusivity and the term of your listing
Pennsylvania law limits exclusive listings to a maximum of one year and prohibits automatic renewal clauses. For exclusive right-to-sell agreements specifically, the law requires bold-face notice that the broker earns commission on a sale during the listing period regardless of who brought the buyer.
"An exclusive listing agreement may not contain: (1) A listing period exceeding 1 year. (2) An automatic renewal clause."
— 49 Pa. Code § 35.332(c)
"In the case of an exclusive right-to-sell agreement, a statement in bold face type that the broker earns a commission on the sale of the property during the listing period by whomever made, including the owner."
— 49 Pa. Code § 35.332(b)(4)
THE RULES IN NEW JERSEY
Selling in New Jersey.
Seven things New Jersey law requires when you list, plus how concessions work.
The Real Estate Consumer Protection Enhancement Act (CPEA)
New Jersey passed P.L. 2024, c.32 — the Real Estate Consumer Protection Enhancement Act, or "CPEA" — on July 10, 2024. It took effect August 1, 2024. The Act expanded consumer protections, mandated written brokerage agreements in residential transactions, made certain seller disclosures mandatory, and added a new agency relationship called designated agency.
"P.L. 2024, c.32 ('Act') was signed into law on July 10, 2024 and becomes effective on August 1, 2024. The Act supplements the New Jersey Real Estate Broker and Salesperson Act, N.J.S.A. 45:15-1 to -42."
— NJ DOBI Bulletin 24-11
Source: NJ DOBI Bulletin 24-11
The Brokerage Services Agreement (BSA) on the listing side
Under the CPEA, the brokerage firm representing you in selling your home must have a written Brokerage Services Agreement with you. The BSA establishes the relationship, the services, the term, the compensation, and whether the relationship is exclusive or non-exclusive.
"The Act requires brokerage firms to obtain a BSA, signed by appropriate parties, 'before, or as soon as reasonably practical after, the firm commences rendering real estate brokerage services on behalf of' such parties."
— NJ DOBI Bulletin 24-11
Source: NJ DOBI Bulletin 24-11
"If the brokerage firm has an agency relationship with the principal, the agreement must specify whether the agency is exclusive or non-exclusive."
— NJ DOBI Bulletin 24-11
The Consumer Information Statement (CIS)
Before working with you, a New Jersey real estate licensee must give you a Consumer Information Statement that explains the different types of business relationships available. Under the CPEA, the CIS must be included as part of the Brokerage Services Agreement.
"The CIS is an informational document that summarizes the various business relationships and accompanying legal duties to help ensure that buyers and sellers make informed decisions regarding business relationships with brokerage firms."
— NJ DOBI Bulletin 24-11
Source: NJ DOBI Bulletin 24-11
The Property Condition Disclosure Statement (PCDS)
Under P.L. 2024, c.32, completion of the Property Condition Disclosure Statement is mandatory for all sellers of residential real property in New Jersey. You must answer questions 1-108 before the buyer becomes obligated under any contract for the purchase of the property. A separate Flood Risk Addendum (questions 109-117) is also mandatory under N.J.S.A. 56:8-19.2 for all sellers of real property, residential or non-residential.
"Pursuant to P.L. 2024, c.32, completion of questions 1 through 108 is mandatory for all sellers of residential real property in the State. Sellers of residential real property must answer these questions before the purchaser becomes obligated under any contract for the purchase of the property."
— NJ REALTORS® Form 140 — Seller's Property Condition Disclosure Statement
"Pursuant to N.J.S.A. 56:8-19.2, all Sellers of real property (including both residential and non-residential property) must complete the Flood Risk Addendum."
— NJ REALTORS® Form 140
The form itself is governed by N.J. Admin. Code § 13:45A-29.1 and the underlying statute N.J.S.A. 56:8-19.1.
"The original purpose of the New Jersey Seller's Property Condition Disclosure Statement was to give real estate agents a 'safe harbor' from lawsuits for consumer fraud. Passed in 1999 and amended in 2004, the shielding statute (N.J.S.A. 56:8-19.1) continues to evolve and has just been amended again to provide additional protections for real estate professionals and consumers alike."
— Law Office of Robert J. Incollingo, on N.J.S.A. 56:8-19.1
Compensation disclosure and authorization
Under the CPEA, broker compensation can come from one or more parties — the seller, the buyer, a third party, or shared between brokerage firms. Compensation is fully negotiable. The BSA must spell out the terms, and any offer or payment of compensation to a buyer's broker requires your written authorization.
"Compensation between the brokerage firm and a buyer or seller is negotiable, and a BSA must specify whether the compensation is to be a flat fee, hourly fee, percentage of the sale price, or any other method of compensation."
— NJ DOBI Bulletin 24-11
Source: NJ DOBI Bulletin 24-11
"MLSs must not publish offers of compensation to buyer brokers or other buyer representatives on the MLS."
— NAR Policy Statement 8.12
NAR's MLS policy also requires that the seller authorize any offer or payment of compensation to a buyer's broker in writing, and that no such offer can appear on the MLS.
Source: NAR Summary of 2024 MLS Changes
Open house signage — the listing agent's obligation
When the listing agent (or anyone acting for the listing brokerage) conducts an open house at your home in New Jersey, they're required by law to display a specific sign at the entrance or sign-in sheet. The sign tells visitors who the open-house agent represents — you, the seller — and reminds them of your right to be represented by your own buyer's agent.
"ATTENTION PROSPECTIVE PURCHASERS - PLEASE READ THIS SIGN CAREFULLY. This is to advise you that the agent who is conducting this Open House REPRESENTS THE SELLER AND IS REQUIRED BY LAW TO PROMOTE THE INTERESTS OF THE SELLER. ANY INFORMATION YOU GIVE THIS AGENT IS NOT CONSIDERED CONFIDENTIAL under New Jersey law and could be disclosed to the Seller of this property..."
— NJ DOBI Bulletin 24-11 (excerpt of required signage text)
Source: NJ DOBI Bulletin 24-11
Designated Agency from the seller's perspective
The CPEA created a new agency relationship called designated agency. In a designated agency arrangement, one brokerage firm represents both buyer and seller in the same transaction, but the firm assigns different individual licensees to represent each side. Both parties must give written informed consent for designated agency to apply.
"In order for a designated agency relationship to take effect, the brokerage firm must obtain the informed written consent of both parties to the transaction."
— NJ DOBI Bulletin 24-11
Source: NJ DOBI Bulletin 24-11
What is a Seller Concession
A seller concession is when the seller agrees to cover certain costs typically paid by the buyer. Concessions are different from offers of compensation to a buyer's agent and follow separate rules — set primarily by the buyer's lender, not by state real estate law.
"A concession is when a seller pays for certain costs associated with purchasing a home for the buyer. Concessions could make your property more attractive to buyers or lead to a better or faster offer."
— NAR Consumer Guide: Seller Concessions
What's the difference between a concession and an offer of compensation?
"Concessions can cover a variety of costs or fees for a buyer associated with purchasing a home, whereas an offer of compensation is specifically when the seller or their agent agrees to compensate a buyer's agent for bringing a buyer who successfully closes the transaction."
— NAR Consumer Guide: Seller Concessions
Is there a limit?
"The limit on the total value of concessions you can offer depends on the terms set by the buyer's lender and state law. However, any payment you offer toward the buyer's broker's fee is excluded from limits set by the buyer's lender and must be made off-MLS."
— NAR Consumer Guide: Seller Concessions
For Fannie Mae conventional loans, lender-side limits ("interested party contributions") depend on the buyer's loan-to-value ratio (LTV — the loan amount as a percentage of the home's value) and the type of property:
"For a principal residence or second home, up to 3% if the LTV is over 90%, up to 6% if the LTV is between 75.01% and 90%, and up to 9% if the LTV is 75% or less. For an investment property, up to 2% regardless of the LTV ratio."
— Fannie Mae Selling Guide B3-4.1-02, Interested Party Contributions (IPCs)
FHA, VA, and USDA loan programs set their own concession limits. The buyer's lender confirms what's permitted for any specific offer.
This page summarizes regulatory requirements with citations to primary sources. It is general education, not legal advice. Consult a real estate attorney for guidance specific to your transaction.
Frequently asked.
Common questions sellers ask about the new rules in Pennsylvania.
Do I have to offer to compensate a buyer's agent when I list my home in Pennsylvania?
No. Offering compensation to a buyer's agent is a choice you make as the seller — it is not required by Pennsylvania law or by NAR. Your listing agreement must disclose that the broker's commission was determined through negotiation.
"It is up to you to determine if making or authorizing an offer of compensation is the best approach for selling your property."
— NAR Consumer Guide: Listing Agreements
"Notification that the broker's commission and the duration of the agreement have been determined as a result of negotiations between the broker and the consumer."
— 49 Pa. Code § 35.331(a)(3)
Source: 49 Pa. Code § 35.331
Can I cancel my listing agreement if I change my mind?
Pennsylvania law does not give either side an automatic right to terminate. The listing agreement is binding for its term, and cancellation terms must be negotiated into the contract itself. Read those terms before you sign.
"By signing this contract, the buyer or tenant agrees to be represented by the broker and no other. Neither side has an automatic right to terminate and walk away unless both sides negotiate that term into the contract."
— Pennsylvania Association of REALTORS®, on Pennsylvania broker-consumer contracts
What's the maximum term of an exclusive listing in Pennsylvania?
One year. Pennsylvania law caps exclusive listing agreements at twelve months and prohibits automatic renewal clauses. If you want a longer relationship with the same broker, the term has to be renewed by mutual agreement at the end of the listing period.
"An exclusive listing agreement may not contain: (1) A listing period exceeding 1 year. (2) An automatic renewal clause."
— 49 Pa. Code § 35.332(c)
If I agree to compensate a buyer's agent, does that agent still represent the buyer's interests — not mine?
Yes. Pennsylvania law explicitly requires the listing agreement to disclose that a buyer's agent — even one paid by the listing broker or by you, the seller — represents the buyer's interests in the transaction.
"[A] disclosure that a buyer agent, even if compensated by the listing broker or seller/landlord will represent the interests of the buyer/tenant..."
— 49 Pa. Code § 35.331(a)(7)
Source: 49 Pa. Code § 35.331
Do I have to list my home on the MLS to sell it?
No. You have options. You can choose a listing agreement type that includes MLS marketing, or you can choose alternatives — including a Limited-Service Listing Agreement that may include MLS listing without full-service representation, or an "Office Exclusive" exempt listing under NAR policy where your property is not disseminated through the MLS at all.
"Limited-Service Listing Agreement: You work with just one agent who provides a limited set of services, such as publicly marketing your home on a Multiple Listing Service (MLS)—an online platform that compiles home listings from different sources—but may not provide other services, such as arranging showings, providing input on purchase offers, or supporting the negotiation process."
— NAR Consumer Guide: Listing Agreements
"Office Exclusive: Is an exempt listing where the seller has directed that their property not be disseminated through the MLS and not be publicly marketed."
— NAR Multiple Listing Options for Sellers policy
Common questions sellers ask about the new rules in New Jersey.
Do I have to fill out the Property Condition Disclosure Statement in New Jersey?
Yes. Under P.L. 2024, c.32, completion of questions 1-108 of the Property Condition Disclosure Statement is mandatory for all sellers of residential real property in New Jersey. You must answer these questions before the buyer becomes obligated under any contract for the purchase of the property. A separate Flood Risk Addendum (questions 109-117) is also mandatory under N.J.S.A. 56:8-19.2 for all sellers — residential or non-residential.
"Pursuant to P.L. 2024, c.32, completion of questions 1 through 108 is mandatory for all sellers of residential real property in the State. Sellers of residential real property must answer these questions before the purchaser becomes obligated under any contract for the purchase of the property."
— NJ REALTORS® Form 140 — Seller's Property Condition Disclosure Statement
Can I list my home in New Jersey without offering buyer-agent compensation?
Yes. Compensation is fully negotiable in New Jersey. Under the Consumer Protection Enhancement Act, the Brokerage Services Agreement must specify how compensation is structured, but you are not required to offer compensation to a buyer's agent. Any offer or payment to a buyer's broker must be authorized by you in writing, and offers of compensation cannot appear on the MLS.
"Compensation between the brokerage firm and a buyer or seller is negotiable, and a BSA must specify whether the compensation is to be a flat fee, hourly fee, percentage of the sale price, or any other method of compensation."
— NJ DOBI Bulletin 24-11
Source: NJ DOBI Bulletin 24-11
"MLSs must not publish offers of compensation to buyer brokers or other buyer representatives on the MLS."
— NAR Policy Statement 8.12
Source: NAR Summary of 2024 MLS Changes
What does designated agency mean for me as a seller?
Designated agency is a new agency relationship created by the Consumer Protection Enhancement Act. In a designated agency arrangement, one brokerage firm represents both buyer and seller in the same transaction, but assigns different individual licensees to represent each side. Both you and the buyer must give written informed consent for designated agency to apply.
"In order for a designated agency relationship to take effect, the brokerage firm must obtain the informed written consent of both parties to the transaction."
— NJ DOBI Bulletin 24-11
Source: NJ DOBI Bulletin 24-11
Do I have to use a specific sign at my open house in New Jersey?
Yes. When the listing agent conducts an open house at your home, New Jersey law requires a specific sign to be displayed at the entrance or sign-in sheet. The sign tells visitors that the open-house agent represents you, the seller, and reminds prospective buyers of their right to be represented by their own buyer's agent.
"ATTENTION PROSPECTIVE PURCHASERS - PLEASE READ THIS SIGN CAREFULLY. This is to advise you that the agent who is conducting this Open House REPRESENTS THE SELLER AND IS REQUIRED BY LAW TO PROMOTE THE INTERESTS OF THE SELLER. ANY INFORMATION YOU GIVE THIS AGENT IS NOT CONSIDERED CONFIDENTIAL under New Jersey law and could be disclosed to the Seller of this property..."
— NJ DOBI Bulletin 24-11 (excerpt of required signage text)
Source: NJ DOBI Bulletin 24-11
Can the listing agent and the buyer's agent be from the same brokerage?
Yes — but only with informed written consent from both parties. Under New Jersey law, if both buyer and seller are represented by licensees from the same brokerage firm, the firm can operate in one of two ways: as a disclosed dual agent (where the firm itself represents both sides) or as a designated agent (where the firm assigns different individual licensees to represent each side). Both arrangements require the informed written consent of both parties.
"In order for a designated agency relationship to take effect, the brokerage firm must obtain the informed written consent of both parties to the transaction."
— NJ DOBI Bulletin 24-11
Source: NJ DOBI Bulletin 24-11
Do I have to disclose flood risk to buyers in New Jersey?
Yes. Under N.J.S.A. 56:8-19.2, all sellers of real property in New Jersey — both residential and non-residential — must complete the Flood Risk Addendum (questions 109-117 of the Property Condition Disclosure Statement). This requirement is separate from and additional to the mandatory PCDS questions 1-108.
"Pursuant to N.J.S.A. 56:8-19.2, all Sellers of real property (including both residential and non-residential property) must complete the Flood Risk Addendum."
— NJ REALTORS® Form 140 — Seller's Property Condition Disclosure Statement
OFFICIAL SOURCES
Read the actual rules.
Every claim on this page is sourced. If you want to read the original language yourself, here's where to start.
NATIONAL
PENNSYLVANIA
- 49 Pa. Code § 35.331 — Written Agreements Generally
- 49 Pa. Code § 35.332 — Exclusive Listing Agreements
- 49 Pa. Code § 35.336 — Consumer Notice (Disclosure Summary)
- Pennsylvania Association of REALTORS® — Consumer Notice (Form CN)
- Pennsylvania Association of REALTORS® — Buyer Agency Contract (Form BAC)
Want to see a sample listing agreement?
Reading the listing agreement before you sit down with an agent makes the whole process clearer. Tell us your name, email, and which state you're selling in — we'll send you a sample agreement to review on your own time. Then the decision is yours.