Bill Text: NJ S1047 | 2020-2021 | Regular Session | Chaptered
Bill Title: Concerns disclosure of certain information prior to sale of real estate.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2021-11-08 - Approved P.L.2021, c.268. [S1047 Detail]
Download: New_Jersey-2020-S1047-Chaptered.html
An Act concerning disclosure of certain information prior to the sale of real estate and amending P.L.1999, c.76.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1999, c.76 (C.56:8-19.1) is amended to read as follows:
1. Notwithstanding any provision of P.L.1960, c.39 (C.56:8-1 et seq.) to the contrary, there shall be no right of recovery [of punitive damages, attorney fees, or both, under section 7 of P.L.1971, c.247 (C.56:8-19),] against a real estate broker, broker-salesperson or salesperson licensed under R.S.45:15-1 et seq. for the communication of any false, misleading or deceptive information provided to the real estate broker, broker-salesperson or salesperson, [by or on behalf of the seller of] regarding real estate located in New Jersey, if the real estate broker, broker-salesperson or salesperson demonstrates that he:
a. Had no actual knowledge of the false, misleading or deceptive character of the information; and
b. Made a reasonable and diligent inquiry to ascertain whether the information is of a false, misleading or deceptive character. For purposes of this section, communications by a real estate broker, broker-salesperson or salesperson which shall be deemed to satisfy the requirements of a "reasonable and diligent inquiry" include, but shall not be limited to, communications which disclose information:
(1) provided in a report or upon a representation by a person, licensed or certified by the State of New Jersey, including, but not limited to, an appraiser, home inspector, plumber or electrical contractor, or an unlicensed home inspector until December 30, 2005, of a particular physical condition pertaining to the real estate derived from inspection of the real estate by that person;
(2) provided in a report or upon a representation by any governmental official or employee, if the particular information of a physical condition is likely to be within the knowledge of that governmental official or employee; or
(3) that the real estate broker, broker-salesperson or salesperson obtained from the seller in a property condition disclosure statement, which form shall comply with regulations promulgated by the director in consultation with the New Jersey Real Estate Commission, provided that the real estate broker, broker-salesperson or salesperson informed the buyer that the seller is the source of the information and that, prior to making that communication to the buyer, the real estate broker, broker-salesperson or salesperson visually inspected the property with reasonable diligence to ascertain the accuracy of the information disclosed by the seller.
Nothing in this section 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.
(cf: P.L.2004, c.18, s.2)
2. This act shall take effect immediately.
STATEMENT
This bill amends the law exempting certain real estate licensees from certain damages under the consumer fraud law. Specifically, this bill broadens the current exemption for real estate brokers, broker-salespersons, or salespersons from a right of recovery by persons who suffer any ascertainable loss of money or property, real or personal, by eliminating the current limitation with respect to the right of recovery to punitive damages and attorney's fees.
Current law prevents a person from recovering punitive damages or attorney fees from a real estate broker, broker-salesperson, or salesperson for the communication of any false, misleading, or deceptive information provided to the real estate broker, broker-salesperson, or salesperson by or on behalf of the seller of real estate located in New Jersey, if the real estate broker, broker-salesperson, or salesperson demonstrates that he had no actual knowledge of the false, misleading, or deceptive character of the information and made a reasonable and diligent inquiry to ascertain whether the information is of a false, misleading, or deceptive character.
This bill broadens the exemption to prohibit recovery of any damages if those conditions are met. This bill further eliminates the provision in the current restriction that requires that the communication to real estate brokers, broker-salespersons, or salespersons is made by or on behalf of the seller, and instead, it provides that the communication need only be regarding the real estate.
Concerns disclosure of certain information prior to sale of real estate.
