Required Disclosure  ·  Compensation Notice

Commission & Compensation
Disclosure

Effective January 2024 and in compliance with current New Jersey and federal requirements

Key Disclosure

Real estate commissions and broker compensation are fully negotiable in New Jersey. No standard, fixed, or mandatory commission rate exists. The compensation paid to any real estate broker is determined solely by agreement between the broker and the client.

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:

Written Buyer Representation Agreement

Prior to touring any property, buyers working with The JK Realty Group will be provided a written buyer representation agreement that clearly discloses:

  • The compensation The JK Realty Group will receive if the buyer purchases a property
  • How compensation is structured (e.g., percentage of purchase price, flat fee)
  • How compensation will be paid and by whom
  • The duration and scope of the representation agreement

You are entitled to read this agreement carefully, ask questions, and negotiate its terms before signing.

Seller Compensation Disclosure

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

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 Mansion Tax (Buyer)

Buyers purchasing a residential property for $1,000,000 or more in New Jersey are required to pay a 1% supplemental transfer fee commonly called the "mansion tax." This fee applies to the entire purchase price when it equals or exceeds $1,000,000. This is a state-imposed fee separate 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.

Contact Us

John Kelly, Broker-Owner: (609) 790-6079
Justin Kelly, Broker-Associate: (609) 444-9704
Office: (856) 681-4024
Email: [email protected]

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