Bill Text: NJ S1700 | 2012-2013 | Regular Session | Introduced
Bill Title: Requires three-day attorney review period for residential leases.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-02-27 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S1700 Detail]
Download: New_Jersey-2012-S1700-Introduced.html
Sponsored by:
Senator RONALD L. RICE
District 28 (Essex)
SYNOPSIS
Requires three-day attorney review period for residential leases.
CURRENT VERSION OF TEXT
As introduced.
An Act requiring that all residential leases contain a three-day attorney review period, supplementing Title 46 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Except as otherwise provided in subsection d. of this section, all contracts for the lease of property as a residential dwelling for a term of one year or more, executed after the effective date of this act, not including renewals of existing residential leases, shall contain, at the top of the first page and in print larger than the predominant size print of the writing, the following bolded language: "THIS IS A LEGALLY BINDING LEASE THAT WILL BECOME FINAL AFTER THREE BUSINESS DAYS OR ON THE DATE THAT THE TENANT FIRST OCCUPIES THE DWELLING, WHICHEVER IS EARLIER. PRIOR TO THAT TIME YOU MAY CHOOSE TO CONSULT AN ATTORNEY WHO CAN REVIEW AND CANCEL THE LEASE. SEE SECTION ON ATTORNEY REVIEW FOR DETAILS."
b. All contracts governed by subsection a. of this section shall include the following language within the text of the lease:
"ATTORNEY REVIEW:
1. Study by an Attorney
The tenant or landlord may choose to have an attorney study this lease during the three-day attorney review period. This lease will be legally binding at the end of this three-day period unless an attorney for the tenant or landlord reviews and disapproves of the lease.
2. Counting the Time
The three-day attorney review period shall start from the day next following the date of delivery of the signed lease to both the tenant and landlord, not including Saturdays, Sundays, or federal legal holidays. If a tenant commences occupancy of a residential dwelling prior to the conclusion of the three-day attorney review period, the review period shall terminate as of the time that the tenant commences occupancy. The tenant and landlord may agree in writing to extend the three-day period for attorney review.
3. Notice of Disapproval
If an attorney for the tenant or the landlord reviews and disapproves of this lease, the attorney must notify the other party named in the lease for receipt of a Notice of Disapproval within the three-day attorney review period. Otherwise, this lease will be legally binding as written. The attorney must send the notice of disapproval to the other party named in the lease by certified mail, by telegram, or by delivering it personally. The certified letter or telegram will be effective upon sending. The personal delivery will be effective upon receipt by the other named party. The attorney may, but need not, also inform the other named party of any suggested revisions in the lease that would make it satisfactory."
c. All contracts governed by subsection a. of this section shall include the full name and full address of the person to whom the Notice of Disapproval must be sent in order to be effective.
d. (1) The provisions of subsections a., b. and c. of this section shall not apply to leases prepared by real estate licensees, which leases are required to contain a three-day attorney review clause in accordance with regulations adopted by the New Jersey Real Estate Commission.
(2) The provisions of subsections a., b. and c. of this section shall not apply to leases on properties that are financed by the New Jersey Housing and Mortgage Finance Agency.
(3) The provisions of subsections a., b. and c. of this section shall not apply to leases on properties that receive allocations from the Federal Low Income Housing Tax Credit Program administered by the New Jersey Housing and Mortgage Finance Agency.
2. This act shall take effect on the first day of the third month next following the date of enactment.
STATEMENT
This bill requires that certain residential leases contain a three-day attorney review period. The bill provides that a tenant or landlord who executes a residential lease may have the lease reviewed by an attorney and the attorney may disapprove of the lease no later than three days following execution of the lease, or the time the tenant occupies the premises. The attorney must send the Notice of Disapproval to the party specified in the lease as authorized to accept said notice via certified mail, telegram, or personal service. The bill further requires all residential leases to contain specific language defining and setting forth the terms of the three-day attorney review period. Finally, the bill requires that all residential leases contain the name and address of the person to whom the attorney may send the Notice of Disapproval.
The provisions of the bill do not apply to a lease prepared by a real estate licensee, leases on properties financed by the New Jersey Housing and Mortgage Finance Agency, or leases on properties that are financed by the Federal Low Income Housing Tax Credit Program administered by the New Jersey Housing and Mortgage Finance Agency.
