Bill Text: NJ A3317 | 2022-2023 | Regular Session | Introduced
Bill Title: Establishes residential property wholesaler license.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-03-07 - Introduced, Referred to Assembly Regulated Professions Committee [A3317 Detail]
Download: New_Jersey-2022-A3317-Introduced.html
Sponsored by:
Assemblywoman ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
Establishes residential property wholesaler license.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning residential property wholesalers and supplementing Title 45 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Commission" means the New Jersey Real Estate Commission.
"Homeowner" means the individual who holds legal title to a residential property.
"Residential property" means a property legally used for residential purposes or held out as residential property, regardless of whether the property is rented, vacant, or occupied by homeowner.
"Residential property wholesaler" means a person or entity who is in the business of purchasing or soliciting for purchase residential properties, not to use as their residence. A residential property wholesaler shall not include:
(1) a public official or employee who acts as a residential property wholesaler in the course of their official duties;
(2) a person or entity who is in the business of purchasing residential properties and substantially improving those properties for the purpose of resale;
(3) attorneys licensed to practice law in this State; or
(4) persons licensed as a real estate broker, broker-salesperson, or salesperson by the New Jersey Real Estate Commission.
"Solicit" means to advertise the accomplishments or abilities of a residential property wholesaler, request that a homeowner list a residential property for sale, or offer to purchase a homeowner's residential property through mail, oral communication, or electronic communication.
2. a. No person or entity shall act as a residential property wholesaler without first obtaining a valid residential property wholesaler license.
b. An application for a residential property wholesaler license and a renewal of a residential property wholesaler license shall be submitted to the commission on a form and in a manner prescribed by the commission, and shall contain the following information:
(1) a non-refundable application fee of $200;
(2) documentation that the applicant possesses insurance, in a type and amount to be determined by the commission;
(3) the name and address of the applicant or, if the applicant is not a natural person, the name and address of the responsible natural person; and
(4) the names of any New Jersey corporations, including all limited liability corporations, in which the applicant has an equity interest, regardless of whether the applicant has a direct equity interest or whether the applicant's equity interest is held through one or more tiers of a corporate structure, such as a parent-subsidiary structure.
c. An applicant or licensed residential property wholesaler shall notify the commission, in writing, within 72 hours of any changes to the information contained in or submitted with the application.
d. The commission, when satisfied with the examination of any application and any further inquiry and investigations as the commission shall deem proper as to the good character, competency and integrity of the applicant, shall issue a license to an approved residential property wholesaler upon payment of a fee in an amount established by the commission. The license shall be renewable every year upon payment of a renewal fee in an amount established by the commission. The license may be revoked or suspended by the commission for a violation of any of the provisions of this act or for other good cause.
e. The commission shall not issue a residential property wholesaler license to any person that has, within the six years preceding the submission of application for licensure, been convicted of any crime of fraud, dishonesty, breach of trust, or deceit, or has been convicted for violating the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13D-12 et seq.).
3. a. No residential property wholesaler or applicant for a residential property wholesaler license shall, in the course of soliciting residential property:
(1) knowingly make any substantial misrepresentations, make any false promises, untruthfully advertise, or engage in any conduct that demonstrates bad faith, dishonesty, untrustworthiness, or incompetency; or
(2) knowingly give false or misleading information when completing a residential property wholesaler license application or when providing changes of information to the commission.
b. The commission may revoke or refuse to issue a residential property wholesaler license to a person with a significant history of the conduct prohibited pursuant to this section.
4. a. A residential property wholesaler shall provide a homeowner with a disclosure at least three days before presenting an offer to purchase the homeowner's residential property. The disclosure shall:
(1) inform the homeowner of how to access resources that assess the fair value of residential properties including any private real estate assessment tools as may be identified by the commission;
(2) inform the homeowner of the seller's ability to hire a real estate agent or seek legal counsel; and
(3) identify any other resources deemed appropriate by the commission.
b. The residential property wholesaler shall require the homeowner to sign the disclosure and shall maintain a copy of the signed disclosure in its records for a period of at least five years.
5. Any agreement of sale entered into by a residential property wholesaler who is not licensed as a residential property wholesaler at the time of the solicitation may be rescinded, at the sole option of the homeowner, at any time prior to the transfer of the title to the homeowner's residential property.
6. a. It shall be an unlawful practice for an individual or entity, including but not limited to, a real estate broker or agent, or the employee or representative of a broker or agent, to solicit real property for sale or rental, or the listing of real property for sale or rental, at any time after the individual or entity has notice that the owner or other person with the right to sell, rent, lease, or approve the sale, rental or lease of the real property does not desire to sell or rent the real property, or does not desire to be solicited, either by the individual or entity, or by any individual or entity.
b. The commission shall create and maintain a public list of real property owners who have expressed a desire to not be solicited to sell or rent their real property, which shall be known as the "Do Not Solicit List." Upon written request from a real property owner, the commission shall remove a real property owner's name from the 'Do Not Solicit List" within 30 days. Inclusion on the "Do Not Solicit List" of any real property owner shall qualify as notice that the real property owner does not desire to sell or rent the real property and does not desire to be solicited pursuant to the act.
7. For the purpose of investigating whether a person has engaged in, or is engaging in, any act or practice declared unlawful pursuant to this act, or for the purpose of investigating the character, competency, integrity or methods of operation of applicants, licensees or registrants hereunder, or of any owner or operator of any residential property wholesaler, the commission shall have the power to:
a. require any person to file on such form as may be prescribed by the commission, a statement or report in writing under oath, or otherwise, as to the facts and circumstances concerning any matter being investigated;
b. administer oaths or affirmations and examine any person in connection with any investigation;
c. inspect any premises and examine and impound any record, book, computer, electronic database, recording device, document, account, paper or other tangible thing, without prior notification, in connection with any investigation;
d. hold investigative hearings and issue subpoenas to compel the attendance of any person or the production of any record, book, computer, electronic database, recording device, document, account, paper or other tangible thing in connection with any investigation; and
e. apply to the Superior Court for an order compelling compliance with any subpoena or other request for information.
8. A person who violates any provision of this act shall be subject to a penalty of $2,000 for each offense, to be sued for and recovered by and in the name of the commission pursuant to the provisions of the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
If any person acts or attempts to act as a residential property wholesaler or holds himself or herself out as being able to act as a residential property wholesaler in violation of the provisions of this act, each day during which the violation continues shall constitute an additional, separate, and distinct offense for the purposes of this section.
9. This act shall take effect on the first day of the seventh month next following the date of enactment but the commission may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of the act.
STATEMENT
This bill establishes a residential property wholesaler license under the New Jersey Real Estate Commission. Under the bill, "residential property wholesaler" means a person or entity who is in the business of purchasing or soliciting for purchase residential properties, not to use as their residence. A residential property wholesaler is not to include:
(1) a public official or employee who acts as a residential property wholesaler in the course of their official duties;
(2) a person or entity who is in the business of purchasing residential properties and substantially improving those properties for the purpose of resale;
(3) attorneys licensed to practice law in this State; or
(4) persons licensed as a real estate broker, broker-salesperson, or salesperson by the New Jersey Real Estate Commission
The bill provides that person or entity is permitted to act as a residential property wholesaler without first obtaining a valid residential property wholesaler license. Application for a residential property wholesaler license and a renewal of a residential property wholesaler license is to be submitted to the New Jersey Real Estate Commission on a form and in a manner prescribed by the commission.
The bill provides that no residential property wholesaler or applicant for a residential property wholesaler license is permitted to, in the course of soliciting residential property:
(1) knowingly make any substantial misrepresentations, make any false promises, untruthfully advertise, or engage in any conduct that demonstrates bad faith, dishonesty, untrustworthiness, or incompetency; or
(2) knowingly give false or misleading information when completing a residential property wholesaler license application or when providing changes of information to the commission.
Under the bill, a residential property wholesaler is to provide a homeowner with a disclosure at least three days before presenting an offer to purchase the homeowner's residential property. The residential property wholesaler is to require the homeowner to sign the disclosure and maintain a copy of the signed disclosure in its records for a period of at least five years.
Pursuant to the bill, any agreement of sale entered into by a residential property wholesaler who was not licensed as a residential property wholesaler at the time of the solicitation may be rescinded, at the sole option of the homeowner, at any time prior to the transfer of the title to the homeowner's residential property.
Furthermore, the bill states that it is an unlawful practice for a real estate broker or agent, or the employee or representative of a broker or agent, to solicit any real property for sale or rental, or the listing of any real property for sale or rental, at any time after the broker, agent, employee or representative has notice that the owner or other person with the right to sell, rent, lease, or approve the sale, rental or lease of such real property does not desire to sell or rent such real property, or does not desire to be solicited, either by the broker or agent, or by any broker or agent.
Under the bill, the commission is to create and maintain a public list of real property owners who have expressed a desire to not be solicited to sell or rent their real property, to be known as the "Do Not Solicit List." Inclusion on the "Do Not Solicit List" of any real property owner is to qualify as notice that the real property owner does not desire to sell or rent the real property and does not desire to be solicited.
The bill also provides that the commission is to have certain powers for the purpose of investigating whether a person has engaged in, or is engaging in, any act or practice declared unlawful pursuant to the bill, or for the purpose of investigating the character, competency, integrity or methods of operation of applicants, licensees or registrants hereunder, or of any owner or operator of any residential property wholesaler.
A person that violates the provisions of the bill is to be subject to a penalty of $2,000 for each offense.
