Commission & Compensation
Disclosure

Negotiability of Compensation

Under New Jersey law, federal antitrust law, and the NJ Realtors® Code of Ethics, real estate broker compensation is not fixed, controlled, or set by any real estate organization, trade association, multiple listing service, or government body. Commission rates are established entirely by negotiation between a broker and the client the broker serves.

Consumers are encouraged to discuss and negotiate compensation terms openly and directly with their broker before entering into any listing agreement or buyer representation agreement.

How Buyer Broker Compensation Works

In many New Jersey real estate transactions, the seller has historically offered to pay a cooperating buyer's broker compensation as a condition of MLS listing. This practice continues, but has evolved following industry changes effective August 2024:

• Sellers are no longer required to offer buyer broker compensation as a condition of MLS listing
• Buyers must now enter into a written buyer representation agreement with their broker before touring homes, which discloses compensation terms
• Buyer broker compensation may be negotiated as part of the purchase contract with the seller
• Buyers may negotiate with their broker to reduce, modify, or structure compensation in any manner agreeable to both parties

Seller Compensation Disclosure

Sellers listing with The JK Realty Group will receive a written listing agreement that discloses:

• The total compensation the seller has agreed to pay the listing broker
• Any portion of compensation offered to cooperating buyer's brokers, if applicable
• All terms and conditions of the listing agreement

Sellers are not obligated to offer compensation to buyer's brokers. Compensation offered to cooperating brokers may be negotiated as part of any offer or counteroffer.

New Jersey Realty Transfer Fee (Seller)

In addition to broker compensation, sellers in New Jersey are responsible for the Realty Transfer Fee (RTF) at closing. The RTF is a state-imposed fee calculated on the purchase price according to a tiered schedule set by New Jersey law (N.J.S.A. 46:15-5 et seq.). The RTF is not a commission and is separate from any broker compensation.

New Jersey Graduated Percent Fee (Seller)

For deeds recorded on or after July 10, 2025, the seller pays a graduated fee on residential sales over $1,000,000, which replaced the 1% buyer-paid fee long called the "mansion tax" (P.L. 2025, c. 69). The rate is 1% from $1,000,000 to $2,000,000, 2% above $2,000,000 to $2,500,000, 2.5% above $2,500,000 to $3,000,000, 3% above $3,000,000 to $3,500,000, and 3.5% above $3,500,000, charged on the entire consideration rather than the amount over the threshold. This is a state-imposed fee, separate from the standard realty transfer fee and from any broker compensation.

Questions About Compensation

We encourage all clients, buyers and sellers, to ask questions about compensation before entering into any agreement. A direct conversation about compensation is a normal and expected part of the real estate process. There are no standard rates, no industry-wide minimums, and no amounts that cannot be discussed and negotiated.

This disclosure is provided in compliance with New Jersey law, the NJ Realtors® Code of Ethics, and applicable federal antitrust regulations. The JK Realty Group is not a law firm. This disclosure does not constitute legal or financial advice. Consumers should consult a qualified New Jersey real estate attorney regarding the legal aspects of any real estate transaction. Last reviewed: 2026.

See also: Consumer Information Statement on Agency Relationships  ·  Contact The JK Realty Group