Prohibits imposition of costs of certain realtor services on residential tenants.

A4326

ASSEMBLY, No. 4326

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Assemblywoman� SHANIQUE SPEIGHT

District 29 (Essex and Hudson)

SYNOPSIS

���� Prohibits imposition of costs of certain realtor
services on residential tenants.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

prohibiting imposition of certain brokerage
costs on residential tenants, amending P.L.2024, c.32 (C.45:15-16.86 et al.),
and supplementing P.L.1975, c.310 (C.46:8-43 et seq.) and P.L.1960, c.39
(C.56:8-1 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 1 of P.L.2024,
c.32 (C.45:15-16.86) is amended to read as follows:

���� 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.

����
"Landlord" means
any person, or a firm, corporation, or other business entity, including a
property manager or other agent of a person, or a firm, corporation, or other
business entity, that leases, rents, or offers to lease or rent, residential
rental units to a tenant.

���� "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.

����
"Tenant" means
any person who leases or rents, or who prospectively offers or applies to lease
or rent, residential rental units from a landlord.

���� "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.

(cf: P.L.2024, c.32, s.1)

���� 2.��� Section 11 of P.L.2024,
c.32 (C.45:15-16.96) is amended to read as follows:

���� 11.� a.� In any real estate
transaction, a brokerage firm's compensation may be paid by one or more of the
following: the seller; the buyer; a third party; or by sharing the compensation
between brokerage firms.� Agreements on compensation shall be in writing signed
by the seller or buyer, as applicable.

���� b.��� An agreement to pay or
payment of compensation shall not establish an agency relationship between the
party who paid the compensation and the brokerage firm.

���� c.���� A seller may agree that
a seller's agent's or transaction broker's brokerage firm may share with
another brokerage firm the compensation paid by the seller, provided that this
type of agreement is in writing and signed by the seller.

���� d.��� A buyer may agree that a
buyer's agent's or transaction broker's brokerage firm may share with another
brokerage firm the compensation paid by the buyer, provided that this type of
agreement is in writing and signed by the buyer.

���� e.���� Notwithstanding any
provision of chapter 15 of Title 45 of the Revised Statutes or any other law,
rule, or regulation to the contrary, including, but not limited to, subsection
i. of R.S.45:15-17, a brokerage firm may be compensated by more than one party
for real estate brokerage services in a real estate transaction regardless of
the agency or transaction broker relationship the brokerage firm has with the
parties.

���� f.���� A brokerage firm may
receive compensation based upon a flat fee arrangement, a percentage of the
purchase price, or other method permitted by law, all of which shall be a
commission payment for any real estate brokerage services rendered, without
breaching any duty to the buyer or seller.

���� g.��� To receive compensation
for rendering real estate brokerage services from any party, firm, or third
party, a brokerage firm shall have a written brokerage services agreement with
the buyer or the seller, as applicable, in a residential real estate transaction
and a written brokerage services agreement with the seller but not with the
buyer in a commercial real estate transaction containing the following:

���� (1)�� the terms of
compensation, including:

���� (a)�� the amount the principal
agrees to compensate the brokerage firm;

���� (b)�� the principal's consent,
if any, and any terms of the consent to compensation sharing between brokerage
firms and parties sharing the payment of the compensation; and

���� (c)�� the principal's consent,
if any, and any terms of consent to compensation of the brokerage firm by more
than one party; and

���� (2)�� in a brokerage services
agreement with a buyer, if there is no agreement, offer, or a limited offer by
any other party or brokerage firm to pay compensation to the brokerage firm, if
the buyer will pay the difference between the offer and the compensation the
buyer has agreed is due to the buyer's agent and, if not, the buyer's agreement
as to how to proceed in this situation, including, but not limited to,
directing the buyer's agent not to introduce the buyer to properties where the
seller is not offering compensation or is offering less compensation to the
buyer's agent than the buyer agreed is due to the buyer's agent.

���� h.��� A brokerage firm may
receive compensation, which shall be deemed to be the payment of a commission,
without a brokerage services agreement for the provision of a broker's price
opinion, comparative market analysis, or a referral by one firm to another firm
if the referring firm provided no real estate brokerage services in the
transaction.

����
i.���� (1)� Notwithstanding
any provision of law to the contrary, regarding residential real property, a
brokerage firm shall not:

����
(a)�� impose upon, pass
through to, or accept from, a tenant any fees, commissions, or charges, for or
related to, brokerage services.

����
(b)�� require or condition
the leasing of residential real property on a tenant engaging a brokerage firm
or agent thereof; or

����
(c)�� post a listing for
the rental of residential real property that represents that fees, charges, or
commissions for brokerage services are required in violation of this subsection.

����
(2)�� A brokerage firm
shall disclose in a real estate listing,
in a clear and conspicuous manner, all fees to be paid by the tenant for the
rental of the property.

(cf: P.L.2024, c.32, s.11)

���� 3.��� (New section)� a.� As
used in this section, the terms "brokerage firm," "brokerage
services," "landlord," and "tenant" shall mean the
same as those terms are defined pursuant to section 1 of P.L.2024, c.32
(C.45:15-16.86).

���� b.��� A landlord shall not:

���� (1)�� impose upon, pass
through to, or accept from, a tenant, any fees, commissions, or charges, for or
related to, brokerage services.

���� (2) require or condition the
leasing of residential real property on a tenant engaging a brokerage firm or
agent thereof; or

���� (3)�� post a listing for the
rental of residential real property that represents that fees, charges, or
commissions for brokerage services are required in violation of this section.

���� c.� (1)�
A listing related to the rental of
residential real property shall disclose in the listing in a clear and
conspicuous manner all fees to be paid by the
tenant
for the rental of the property.

���� (2)�� Prior to the execution of an agreement for the
rental of residential real property, the landlord or landlord�s agent shall
provide to the tenant an itemized written disclosure of any fees that the
tenant

is required to pay to the landlord
or to any other person at the direction of the landlord in connection with the
rental.� The itemized written disclosure shall include a short description of
each fee, and the
tenant
shall
sign any such itemized written disclosure prior to signing a lease for the
rental of residential real property. �The landlord or landlord�s agent shall
retain the signed written disclosure required by this section for three years
and shall provide a copy of the signed written disclosure to the
tenant
.

����
d.��� The following attestation shall be provided
as set forth below in no less than size 12 and bold-faced type in a conspicuous
manner in the landlord�s application for the residential rental unit, and in a
conspicuous manner with the Truth-in-Renting Statement, required pursuant to
P.L.1975, c.310 (C.46:8-43 et seq.):

���� "THE LANDLORD AFFIRMS,
UNDER THE PENALTY OF PERJURY, THAT:

�

THE LANDLORD AND THE LANDLORD�S AGENTS, BY STATE LAW, ARE
PROHIBITED FROM IMPOSING UPON, PASSING THROUGH TO, OR ACCEPTING FROM, A TENANT
OR PROSPECTIVE TENANT, FOR OR RELATED TO, WHETHER DIRECTLY OR INDIRECTLY, ANY
FEES, COMMISSIONS, OR CHARGES IN CONNECTION WITH THE LANDLORD�S AGREEMENT WITH
A BROKERAGE FIRM, INCLUDING A REAL ESTATE AGENT.� THE LANDLORD AFFIRMS THIS
STATUTORY OBLIGATION, AND AFFIRMS THAT, IF THE LANDLORD VIOLATES THIS
REQUIREMENT, THE LANDLORD IS SUBJECT TO THE PENALTIES SET FORTH IN SECTION 5 OF
P.L.1975, C.310 (C.46:8-47) AND SECTION 4 OF P.L.��� , C.��� (C. )
(PENDING BEFORE THE LEGISLATURE AS THIS BILL), INCLUDING A PENALTY TO BE PAID
TO THE TENANT OR PROSPECTIVE TENANT, EQUAL TO THE GREATER OF $5,000, OR THREE
TIMES THE AMOUNT OF ALL FEES, COMMISSIONS, OR CHARGES IMPOSED UPON, PASSED
THROUGH TO, OR ACCEPTED FROM, A TENANT OR PROSPECTIVE TENANT."

���� e.���� A landlord who violates
this section shall be subject to the penalty provisions of section 5 of
P.L.1975, c.310 (C.46:8-47) and section 4 of P.L.��� , C.��� (C.������� )
(pending before the Legislature as this bill).

���� 4.��� (New section)� a.� A
landlord or brokerage firm that violates section 3 of P.L.��� , .c���
(C.������� ) (pending before the Legislature as this bill) or subsection i. of
section 11 of P.L.2024, c.32 (C.45:15-16.96) shall be liable to a penalty, for
each offense, equal to the greater of $5,000, or three times the amount of all
fees, commissions, or charges imposed upon, passed through to, or accepted
from, a tenant.� The penalty shall be collected and enforced by summary
proceedings pursuant to the "Penalty Enforcement Law of 1999," P.L.1999,
c.274 (C.2A:58-10 et seq.).� The Superior Court, Law Division, Special Civil
Part in the county in which the rental premises are located shall have
jurisdiction over such proceedings. �Process shall be in the nature of a
summons or warrant, and shall issue upon the complaint of the commissioner or
the Attorney General.� �

���� b.���
In addition to the penalty set forth pursuant to subsection a. of this
section, and notwithstanding any provision of subsection a. of this section to
the contrary, a
landlord or brokerage firm who violates any provision of
section 3 of P.L.��� , .c��� (C.������� ) (pending before the Legislature as
this bill) or subsection i. of section 11 of P.L.2024, c.32 (C.45:15-16.96),
shall be liable to a penalty, in an action brought at the discretion of a
tenant, for each offense, equal to the greater of $5,000, or three times the
amount of all fees, commissions, or charges imposed upon, passed through to, or
accepted from, a tenant.�
The tenant shall be
permitted to recover the penalty, reasonable attorney�s fees, court costs,
expenses for expert witnesses, and other related fees and expenses incurred in
proving a violation of
section 3 of P.L.��� , .c��� (C.������� )
(pending before the Legislature as this bill) or subsection i. of section 11 of
P.L.2024, c.32 (C.45:15-16.96)
.�
The
Superior Court, Law Division, Special Civil Part in the county in which the
rental premises are located shall have jurisdiction over such proceedings. �Process
shall be in the nature of a summons or warrant, and shall issue upon the
complaint of the tenant.�

���� c.� A violation of section 3
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill)
by a landlord, or a violation of subsection i. of section 11 of P.L.2024, c.32
(C.45:15-16.96) by a brokerage firm, shall constitute an unlawful practice pursuant
to P.L. 1960, c.39 (C.56:8-1 et seq.), and shall be subject to all remedies and
penalties available pursuant to P.L. 1960, c.39 (C.56:8-1 et seq.), in addition
to the remedies provided pursuant to this section.

���� 5.��� (New section)� A violation
of section 3 of P.L.��� , c.��� (C.� ) (pending before the Legislature as this
bill) by a landlord, and a violation of subsection i. of section 11 of
P.L.2024, c.32 (C.45:15-16.96) by a brokerage firm, shall constitute an
unlawful practice.

���� 6.��� This act shall take
effect immediately.

STATEMENT

���� This bill prohibits the
imposition of certain costs for brokerage services, including realtor fees, on
residential tenants or prospective residential tenants (tenants).

���� Specifically, the bill
prohibits a landlord and a brokerage firm from: (1) imposing upon, passing
through to, or accepting from, a tenant, any fees, commissions, or charges, for
or related to brokerage services, as defined in the bill; (2) requiring or conditioning
the leasing of residential real property on a tenant engaging a brokerage firm
or agent thereof; or (3) posting a listing for the rental of residential real
property that represents that fees, charges, or commissions for brokerage
services are required in violation of the bill.

���� The bill requires that e
very listing related to the rental of
residential real property is to disclose in a clear and conspicuous manner any
fee to be paid by the
tenant
for
the rental of such property.� The bill requires that the landlord or landlord�s
agent provide to the tenant, prior to the execution of an agreement for the
rental of residential real property, an itemized written disclosure of any fees
that the
tenant
is required
to pay to the landlord or to any other person at the direction of the landlord
in connection with such rental, as described in the bill.�

����
The bill requires that a landlord provide an
attestation, as set forth in the bill, in a conspicuous manner in the
landlord�s application for the residential rental unit, and with the
Truth-in-Renting Statement, required under existing law, in which the landlord
affirms, under the penalty of perjury, compliance with certain provisions of
the bill and penalties for noncompliance.�

����
A violation of the bill is to constitute an
unlawful practice pursuant to the New Jersey consumer fraud act, P.L.1960, c.39
(C.56:8-1 et seq.), and subjects a landlord or brokerage firm to a penalty, for
each offense, equal to the greater of $5,000, or three times the amount of all
fees, commissions, or charges imposed upon, passed through to, or accepted
from, a tenant.� The penalty would be collected and enforced by the
Commissioner of Community Affairs or the Attorney General.� Notwithstanding the
civil penalty described above, the bill also provides a private cause of action
for a tenant, who, for a landlord or brokerage firm�s violation of the bill,
would be permitted to recover a penalty for each offense equal to the greater
of $5,000, or three times the amount of all fees, commissions, or charges
imposed upon, passed through to, or accepted from, a tenant, in addition to
reasonable attorney�s fees, court costs, expenses
for expert witnesses, and other related fees and expenses incurred in proving a
violation of the bill.�

���� The
bill would
take effect immediately.