New Jersey-2016-A4288-Introduced

An Act criminalizing certain actions of individuals who offer residential property for rent without a lawful ownership or occupancy interest, and supplementing Title 2C of the New Jersey Statutes.

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

1. a. As used in this section:

"Benefit" includes, but need not be limited to, any pecuniary amount, any property, any services, any pecuniary amount sought to be avoided, or any injury or harm perpetrated on another where there is no pecuniary value.

b. A person is guilty of a crime if the person engages in one or more of the following actions by any means, including, but not limited to, the use of electronic communications or an internet website:

(1) purposefully or knowingly claims ownership or possession, or takes possession, of a residential dwelling without the consent of the lawful owner or an authorized agent of the lawful owner, for the purpose of renting the dwelling to another person or otherwise obtaining a benefit; or

(2) purposefully or knowingly causes another person to take possession of a residential dwelling without the consent of the lawful owner or an authorized agent of the lawful owner, for the purpose of obtaining a benefit.

c. A person who violates this section shall be guilty of a crime of the fourth degree. Each violation is a separate offense.

d. This section does not preclude the prosecution and conviction of a person under any other applicable provision of law.

e. This section does not apply to a tenant, subtenant, lessee, sublessee, or assignee having a lawful occupancy interest in a residential dwelling.

2. This act shall take effect immediately.

STATEMENT

This bill criminalizes certain actions by "imposter landlords," who rent out or advertise for rent residential dwellings they do not own or lawfully possess. The term "residential dwellings" is intended to include houses, apartment units, mobile homes, co-ops, and other types of residences, whether permanent or temporary.

Under this bill, any person who claims ownership or possession, or takes possession, of a residential dwelling without the permission of the lawful owner or an authorized agent of the owner, in order to rent the property out or benefit himself, is guilty of a fourth degree criminal offense. Likewise, any person whose actions or representations cause another person to take possession of a residential dwelling, without permission of the lawful owner or an authorized agent of the owner, for the purpose of obtaining a benefit for himself (such as to collect rent) is guilty of a fourth degree criminal offense. A crime of the fourth degree is ordinarily punishable by a term of imprisonment of up to 18 months or a fine of up to $10,000, or both. These types of frauds are often conducted through the internet, via postings to online marketplaces such as Craigslist.

This bill is not intended to apply to tenants, subtenants, lessees, sublessees, or assignees having a lawful occupancy interest in a property. This bill is also not intended to apply to persons with a good faith belief that they have a lawful ownership interest in the residence or a good faith belief that they are authorized to rent out, or advertise for rent, a residence. This bill also would not preclude the prosecution and conviction under other applicable provisions of criminal (e.g., theft or fraud charges) and civil law.

The problem of imposter landlords is an issue that broadly affects our communities and is destructive to families and property owners alike. Throughout the country, imposter landlords steal thousands of dollars from unsuspecting individuals, and often target vulnerable sections of the population. As a result of these types of scams, families often have lost their savings and their homes by the time the perpetrators are caught. Imposter landlords also steal from the lawful owners of residences and inhibit their ability to make full use and enjoyment of their property. By targeting the range of conduct of imposter landlords, this bill seeks to prevent this nature of criminality from occurring in the first place.