Bill Text: NJ S2459 | 2010-2011 | Regular Session | Introduced
Bill Title: Regulates deed procurement solicitors.*
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-15 - Reported from Senate Committee with Amendments, 2nd Reading [S2459 Detail]
Download: New_Jersey-2010-S2459-Introduced.html
Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Mercer)
SYNOPSIS
Regulates deed solicitors.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning deed solicitors and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Deed" means a written instrument entitled to be recorded in the office of a county recording officer which purports to convey or transfer title to a freehold interest in any lands, tenements, or other realty in this State by way of grant or bargain and sale thereof from the named grantor to the named grantee. A leasehold interest for 99 years or more or a proprietary lease of a cooperative unit and any assignment of a proprietary lease of a cooperative unit, shall be treated as a "freehold" for the purpose of this act. Instruments providing for common driveways; for exchanges of easements or rights-of-way; for revocable licenses to use, to adjust, or to clear defects of or clouds on title; to provide for utility service lines such as drainage, sewerage, water, electric, telephone, or other such service lines; or to quitclaim possible outstanding interests, shall not be "deeds" for the purposes of this act.
"Deed solicitor" means any person who engages in the business of procuring copies of deeds for lands, tenements, or other realty in this State, for a fee and not in relation to the transfer or sale of such lands, tenements, or realty.
"Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.
"Division" means the Division of Consumer Affairs in the Department of Law and Public Safety.
2. a. No person shall procure for a fee, or offer to procure for a fee, a copy of any deed for any lands, tenements, or other realty in this State unless registered with the Division of Consumer Affairs in accordance with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. Every deed solicitor shall annually register with the director. Application for registration shall be on a form provided by the division and shall be accompanied by a reasonable fee, set by the director in an amount sufficient to defray the division's expenses incurred in administering and enforcing P.L. , c. (C. ) (pending before the Legislature as this bill).
c. Every deed solicitor required to register under this act shall file an amended registration within 20 days after any change in the information required to be included thereon. No fee shall be required for the filing of an amendment.
3. Any person who advertises in print, or puts out any sign, card, or other device which would indicate to the public that he is a deed solicitor, or who causes his name or business name to be included in a classified advertisement or directory in New Jersey under a classification for deed solicitors covered by this act, is subject to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). This section shall not be construed to apply to simple residential alphabetical listings in standard telephone directories.
4. In addition to any other procedure, condition, or information required by this act:
a. The director may refuse to issue or may suspend or revoke any registration issued by him upon proof that the applicant or holder of the registration:
(1) has obtained a registration through fraud, deception, or misrepresentation;
(2) has engaged in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise, or false pretense;
(3) has engaged in gross negligence, gross malpractice, or gross incompetence;
(4) has engaged in repeated acts of negligence, malpractice, or incompetence;
(5) has engaged in professional or occupational misconduct as may be determined by the director;
(6) has had his authority to engage in the activity regulated by the director revoked or suspended by any other state, agency, or authority for reasons consistent with this section; or
(7) has violated or failed to comply with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) or any regulation administered by the director.
b. An applicant whose registration is denied, suspended, or revoked pursuant to this section shall, upon a written request transmitted to the director within 30 calendar days of that action, be afforded an opportunity for a hearing in a manner provided for contested cases pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
c. An applicant shall have the continuing duty to provide any assistance or information requested by the director, and to cooperate in any inquiry, investigation, or hearing conducted by the director.
5. a. The director may refuse to issue or renew, and may revoke, any registration for failure to comply with, or violation of, the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) or for any other good cause shown within the meaning and purpose of P.L. , c. (C. ) (pending before the Legislature as this bill). A refusal or revocation shall not be made except upon reasonable notice to, and opportunity to be heard by, the applicant or registrant.
b. The director, in lieu of revoking a registration, may suspend the registration for a reasonable period of time, or assess a penalty in lieu of suspension, or both, and may issue a new registration, notwithstanding the revocation of a prior registration, if the applicant is found to have become entitled to the new registration.
6. Any deed solicitor who uses a written form of communication to solicit new clients shall:
a. Include on the written form of communication in a clear, conspicuous, and prominent manner the address and telephone number of the appropriate county clerk's office through which the recipient could obtain a copy of the deed directly, and the fee provided for in Title 22A of the New Jersey Statutes that the county clerk's office assesses for providing copies of deeds; and
b. File a copy of such written form of communication used to solicit new clients with the director and the appropriate county clerk's office at least 15 days prior to distribution.
7. It is an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) to violate any provision of P.L. , c. (C. ) (pending before the Legislature as this bill).
8. The director, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations to effectuate the purposes of this act.
9. This act shall take effect on the first day of the 19th month following enactment, but the Director of the Division of Consumer Affairs may take such anticipatory acts in advance of that date as may be necessary for the timely implementation of this act.
STATEMENT
This bill would require deed solicitors to register with the Division of Consumer Affairs. The bill defines "deed solicitor" as any person who engages in the business of procuring copies of deeds for lands, tenements, or other realty in this State, for a fee and not in relation to the transfer or sale of such lands, tenements, or realty.
Under the bill, deed solicitors who use a written form of communication to solicit new clients would be required to include on that written communication in a clear, conspicuous, and prominent manner the address and telephone number of the appropriate county clerk's office through which the recipients could obtain a copy of the deed directly and the fee that the county clerk's office would charge for providing the consumer with a copy of the deed. The deed solicitor would also be required under the bill to file a copy of any written communication used to solicit new clients with both the Division of Consumer Affairs and the appropriate county clerk's office 15 days prior to distributing the communication.
The Director of the Division of Consumer Affairs would be authorized by the bill to refuse to issue or renew, or to suspend or revoke, the registration of any person who violates the bill's provisions. The bill further specifies that violations are unlawful practices under the Consumer Fraud Act.
An unlawful practice under the Consumer Fraud Act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages and the awarding of treble damages and costs to the injured.
