Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington and Camden)
Assemblyman JACK CONNERS
District 7 (Burlington and Camden)
SYNOPSIS
Require property condition disclosure statements for real estate sales.
CURRENT VERSION OF TEXT
As introduced.
An Act requiring property condition disclosure statements and supplementing P.L.1999, c.76 (C.56:8-19.1).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding any other law to the contrary, a real estate broker, broker-salesperson or salesperson licensed under R.S.45:15-1 shall obtain a completed property condition disclosure statement from the seller. The real estate broker, broker-salesperson or salesperson shall provide the disclosure statement to the buyer, and inform the buyer that the seller is the source of information. Nothing in this subsection shall be interpreted to affect the obligations of a real estate broker, broker-salesperson or salesperson pursuant to the "New Residential Construction Off-Site Conditions Disclosure Act," P.L.1995, c.253 (C.46:3C-1 et seq.), or any other law or regulation.
b. Notwithstanding any other law to the contrary, a seller of real property who is not using the services of a real estate broker, broker-salesperson or salesperson licensed under R.S.45:15-1 for the purposes of the sale, shall provide a completed property condition disclosure statement to the buyer. Nothing in this subsection shall be construed to limit the right of recovery of punitive damages, attorney fees, or both, under section 7 of P.L.1971, c.247 (C.56:8-19) against the seller.
c. The property condition disclosure statement required pursuant to subsections a. and b. of this section shall comply with regulations promulgated by the director, in consultation with the New Jersey Real Estate Commission, and shall include, but not be limited to, information regarding:
(1) the level of seller's expertise in contracting, engineering, architecture or other areas related to the construction and conditions of the property and its improvements; and
(2) whether the property has ever suffered any water damage, leakage, accumulation, or dampness, including, but not limited to, in any basement or crawl spaces.
d. This section shall not be construed so as to require a property condition disclosure statement to be completed by the seller and provided to the buyer for the sale of : commercial property; timeshare property, as defined in section 2 of P.L.2006, c.63 (C.45:15-16.51); or new construction, as defined in section 1 of P.L.1968, c.49 (C.46:15-5).
2. This act shall take effect on the first day of the seventh month after enactment.
STATEMENT
This bill requires sellers of real property to complete a property condition disclosure statement, to be provided to the buyer. The statement must comply with regulations promulgated by the Director of Consumer Affairs, in consultation with the New Jersey Real Estate Commission. Specifically, the disclosure statement must include information about the level of the seller's expertise and whether the property has ever suffered water damage or leakage.
In cases where the seller provides the information to his real estate broker or salesperson, the broker or salesperson is required to forward it to the buyer and inform the buyer that the seller is the source of information. The bill specifies that its disclosure requirement does not affect real estate broker's or salesperson's obligations under the "New Residential Construction Off-Site Conditions Disclosure Act."
In addition, the bill specifies that in private sales, where the seller does not use a real estate broker or salesperson and provides the disclosure statement directly to the buyer, the statement does not limit the buyer's right of recovery against the seller under the Consumer Fraud Act.
The bill specifies that its requirement that a property condition disclosure statement is completed by the seller and provided to the buyer does not extend to the sale of new construction or to the sale of commercial or timeshare properties.