Bill Text: NJ A4994 | 2022-2023 | Regular Session | Introduced
Bill Title: Establishes certain requirements if purchasing and reselling same single-family home within one year of receiving certificate of occupancy.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2023-01-10 - Introduced, Referred to Assembly Housing Committee [A4994 Detail]
Download: New_Jersey-2022-A4994-Introduced.html
Sponsored by:
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
SYNOPSIS
Establishes certain requirements if purchasing and reselling same single-family home within one year of receiving certificate of occupancy.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning sales of certain single-family homes, and supplementing P.L.1975, c.217 (C.52:27D-119 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Commissioner" means the Commissioner of Community Affairs.
"Short-term reseller" means a single-family homeowner, including any person, firm, corporation, bank as defined pursuant to P.L.1975, c.265 (C.17:16E-1 et seq.), or other entity who (1) purchased a single-family home; (2) renovated, enlarged, repaired, or in any way altered the home; and (3) offered the home for resale within one year of the receipt of the certificate of occupancy.
"Single-family home" means a detached private residential structure or a private residential townhome attached to another private residential structure.
2. a. A real estate broker, broker-salesperson or salesperson licensed under R.S.45:15-1 shall obtain from a short-term reseller and make part of a contract of sale for a single-family home an attestation, signed by the short-term reseller, affirming that the short-term reseller complied with the State Uniform Construction Code requirements promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123) for the duration of the short-term reseller's ownership of the home.
b. If a short-term reseller 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 of a single-family home, the short-term reseller shall provide and make part of the contract for sale for the single-family home an attestation as is required in subsection a. of this section.
c. A contract of sale for a single-family home shall include an attestation signed by the buyer in which the buyer agrees to comply, for the duration of the buyer's ownership of the home with all permitting requirements under the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123).
d. Prior to the completion of the closing process, an inspection of a single-family home purchased from a short-term reseller shall be conducted by a New Jersey-licensed home inspector to ensure any renovation, enlargement, repair or other alteration was performed in accordance with the requirements of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123). The buyer of the single-family home shall select the home inspector and the cost of the inspection shall be paid for by the short-term reseller through the provision of a credit to the buyer at the time of closing or by any other means agreed to by both the short-term reseller and the buyer.
3. a. Any short-term reseller who falsely attests to complying with the State Uniform Construction Code requirements promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123) in the attestations required pursuant to subsections a., b., and c. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall, in addition to any other penalty provided by law, be liable to a penalty of up to $10,000.
b. (1) A licensed home inspector who performs an inspection pursuant to subsection d. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be liable for the failure to identify a violation of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123) if it is demonstrated that the inspector made a good faith effort to ensure the renovation, enlargement, repair, or other alteration was made in compliance with the requirements of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123).
(2) A licensed home inspector who performs an inspection pursuant to subsection d. of section 2 of P.L. , c. (C. ) pending before the Legislature as this bill) and fails to identify a violation of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123), may incur an administrative penalty, as determined by the commissioner, if it is demonstrated that the failure to identify a violation is the result of the negligence or bad faith of the inspector.
(3) A short-term reseller shall have no private cause of action against a licensed home inspector who fails to identify a violation of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123).
4. Notwithstanding any other penalty provided by law, a person or entity who buys a single-family home from a short-term reseller and who sustains damages within the first year after the purchase of the home as a result of noncompliance by the short-term reseller with the requirements of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123) may bring an action against the short-term reseller in a court of competent jurisdiction. The court may award actual damages sustained as a result of the noncompliance, reasonable attorney's fees, costs of suit, and any other remedy available at law.
5. The department shall develop and undertake a public education program designed to inform the residents of this State of the provisions of this act.
6. This act shall take effect on the first day of the seventh month next following enactment and shall apply to contracts of sale for a single-family home agreed to on or after the effective date.
STATEMENT
This bill establishes requirements to be followed by short-term resellers to ensure necessary precautions are taken if work is performed on houses intended to be resold within a year of purchase. "Short-term reseller" is defined in the bill to mean a single-family homeowner, including any person, firm, corporation, bank as defined pursuant to P.L.1975, c.265 (C.17:16E-1 et seq.), or other entity who (1) purchased a single-family home; (2) renovated, enlarged, repaired, or in any way altered the home; and (3) offered the home for resale within one year of the receipt of the certificate of occupancy. "Single-family home" is defined as a detached private residential structure or a private residential townhome attached to another private residential structure.
Among the stipulations in the bill is that which, prior to the commencement of the closing process, requires a short-term reseller who is selling a single-family home to attest to following certain requirements for permits in the State Uniform Construction Code ("UCC") for the duration of time the reseller owned the home. The attestation will be made part of the contract of sale for the single-family home. Moreover, an inspection of the single-family home purchased from a short-term reseller will be required prior to the conclusion of the closing process to help ensure the requirements of the UCC were followed. The inspection is to be performed by a New Jersey-licensed home inspector chosen by the buyer and paid for by the short-term reseller through a credit to the buyer or other means agreed to by the reseller and buyer.
A short-term reseller who falsely attests to following the requirements of the UCC will be liable, in addition to any other penalty provided by law, to a penalty of up to $10,000. A licensed home inspector will not be liable under the bill for the failure to identify a violation of the UCC if the inspector demonstrates that a good faith effort was made to ensure the renovation, enlargement, repair, or other alteration was made in compliance with the requirements of the UCC. An administrative penalty will be incurred by the inspector if it is demonstrated that there was a failure to identify a violation of the UCC as a result of negligence or bad faith.
Additionally, a short-term reseller will have no private cause of action against a licensed home inspector who fails to identify a violation of the UCC. The bill stipulates, though, that a person or entity who buys a single-family home from a short-term reseller and who sustains damages within the first year after the purchase of the home as a result of noncompliance by the short-term reseller with UCC requirements has a right to a cause of action against the short-term reseller in a court of competent jurisdiction. The court may award actual damages sustained as a result of the noncompliance, reasonable attorney's fees, costs of suit, and any other remedy available at law.
Lastly, the Department of Community Affairs is to develop and undertake a public education program designed to inform New Jersey residents of the provisions of the bill.
