Does a commission agreement have to be in writing in New Jersey?
Yes. Under N.J.S.A. 25:1-16 a broker can only enforce a commission agreement that is in writing and signed. N.J.S.A. 25:1-16
What is the difference between exclusive right-to-sell and exclusive agency?
Under an exclusive right-to-sell (or right-to-lease) the broker is paid even if the owner finds the buyer. Under an exclusive agency the owner can usually sell to a buyer it finds itself without paying that broker. Read the exact wording of your agreement.
What to negotiate
Term: how long the agreement lasts and whether it renews.
Fee: the rate or amount, when it is earned and when it is paid.
Co-brokerage: how a buyer’s or tenant’s broker is paid.
Protection period: whether the broker is owed a fee for a sale or lease after the term ends, and only to listed prospects.
Cancellation: how either side can end the agreement early.
Exclusions: any buyers or tenants you already know and want to exclude.
This is general information, not legal advice. Have your attorney review any agreement before you sign.
Related guides
Frequently asked questions
What is an exclusive listing agreement?
It is a written contract in which a property owner hires one broker, for a set term, to sell or lease a property, and agrees on the commission. In an exclusive right-to-sell or right-to-lease agreement, the broker is usually owed a fee whoever finds the buyer or tenant.
Talk to AcreX
Book a consultation with Jonathan Libock · Call (201) 694-6463 · AcreX Commercial Real Estate, 307 Bloomfield Ave, Caldwell, NJ 07006
