§ 45:15-16 — 86 Definitions.

1. As used in P.L.2024, c.32 (C.45:15-16.86 et al.): "Agency relationship" means the agency relationship created under P.L.2024, c.32 (C.45:15-16.86 et al.) between a real estate brokerage firm and a principal relating to the performance of real estate brokerage services. "Agent" means a real estate brokerage firm, including affiliated brokers, broker-salespersons, and salespersons who are duly licensed under R.S.45:15-1 et seq., that has an agency relationship with a principal. "Brokerage firm" means a real estate brokerage firm, including real estate brokers, real estate broker-salespersons, and real estate salespersons licensed or otherwise authorized to provide brokerage services in this State pursuant to chapter 15 of Title 45 of the Revised Statutes who are affiliated with the brokerage firm, unless the context requires the terms to be considered separately. In accordance with section 2 of P.L.1989, c.239 (C.45:15-16.28), "broker" also includes any broker, broker-salesperson, or salesperson who performs within this State as an agent or employee of a subdivider any one or more of the services or acts as set forth in chapter 15 of Title 45 of the Revised Statutes. "Brokerage services" means the rendering of services for which a real estate license is required under chapter 15 of Title 45 of the Revised Statutes. "Brokerage services agreement" means a written agreement between a brokerage firm and principal that appoints a brokerage firm to represent the principal as an agent or work with a buyer or seller as a transaction broker. Broker services agreements include, but are not limited to, sale and rental listing agreements; buyer-lessee agency agreements; and transaction broker, dual agency, and designated agency agreements. "Buyer" means an actual or prospective purchaser in a real estate transaction, or an actual or prospective tenant in a real estate rental or lease transaction, as applicable. "Buyer's agent" means a brokerage firm, including brokers, broker-salespersons, and salespersons affiliated with the brokerage firm, that has an agency relationship and works only with the buyer in a real estate transaction and to whom the brokerage firm and its brokers, broker-salespersons, and salespersons owe fiduciary duties. "Commercial real estate" means a fee title interest, possessory estate, or lease in real property located in the State of New Jersey, other than an interest in real property that is: improved with one single-family residential unit or one multifamily structure with four or fewer residential units; unimproved and the maximum permitted development is one to four residential units or structures under applicable zoning regulations; classified as farmland, timberland, or other agricultural land for real estate tax assessment purposes; improved with single-family residential units, such as condominiums, townhouses, timeshares, or stand-alone houses in a subdivision that may be legally sold, leased, or otherwise disposed of on a unit-by-unit basis; subject to an agreement that provides that the real estate should be considered residential; or within the definition in this section as of the date of its disposition. "Confidential information" means information from or concerning a principal that, unless required to be disclosed by the brokerage firm pursuant to applicable law: is acquired by the brokerage firm during the course of an agency relationship with the principal; is information that, as advised by the principal to the brokerage firm, the principal reasonably expects to be kept confidential or that the brokerage firm otherwise knows is confidential; would, if disclosed, operate to the detriment of the principal, except that the information may be disclosed if authorized by the principal; and the principal personally would not be obligated to disclose to the other party. "Designated agent" means, in any transaction where the buyer's agent and the seller's agent are affiliated with the same brokerage firm or are the same broker, broker-salesperson, or salesperson, the broker, broker-salesperson, or salesperson who has been designated by the brokerage firm, including, but not limited to, by a broker or managing broker of the brokerage firm, to solely represent the buyer as the buyer's agent and another broker, broker-salesperson, or salesperson who has been designated by the brokerage firm, including, but not limited to, a broker or managing broker of the brokerage firm, to solely represent the seller as the seller's agent in a particular real estate transaction. "Disclosed dual agent" means a brokerage firm, including brokers, broker-salespersons, and salespersons affiliated with the brokerage firm, that has an agency relationship and is working for both the buyer and seller in the same transaction. "Material information" means the existence or non-existence of information: (1) to which a reasonable person would attach importance in deciding whether or how to proceed with a transaction; or (2) that the agent knows or has reason to know that the recipient of the information regards or is likely to regard as important in deciding whether or how to proceed, although a reasonable person would not so regard it. "Principal" means a buyer or a seller who has an agency relationship with a brokerage firm. "Real estate transaction" or "transaction" means an actual or prospective transaction involving a purchase, sale, option, or exchange of any interest in real property or a lease or rental of real property. For purposes of P.L.2024, c.32 (C.45:15-16.86 et al.), a prospective transaction does not exist until a written offer has been signed by at least one party. "Seller" means an actual or prospective seller in a real estate transaction or an actual or prospective landlord in a real estate rental or lease transaction, as applicable. "Seller's agent" means a brokerage firm, including brokers, broker-salespersons, and salespersons affiliated with the brokerage firm, that has an agency relationship and works only with the seller in a real estate transaction and to whom the brokerage firm and its brokers, broker-salespersons, and salespersons owe fiduciary duties. "Transaction broker" means a brokerage firm, including brokers, broker-salespersons, or salespersons affiliated with the brokerage firm, that works with a buyer or a seller, or both, in a real estate transaction without representing either party and has no agency relationship and owes no fiduciary duties to either party to the transaction. L.2024, c.32, s.1.