Bill Text: NJ S2353 | 2010-2011 | Regular Session | Introduced

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Bill Title: Limits late fee charged on delinquencies in residential leases to one percent per day of delinquency not to exceed seven percent.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-10-18 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2353 Detail]

Download: New_Jersey-2010-S2353-Introduced.html

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SENATE, No. 2353

STATE OF NEW JERSEY

214th LEGISLATURE

 

INTRODUCED OCTOBER 18, 2010

 

 

Sponsored by:

Senator  BRIAN P. STACK

District 33 (Hudson)

 

 

 

 

SYNOPSIS

     Limits late fee charged on delinquencies in residential leases to one percent per day of delinquency not to exceed seven percent.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning late fees charged on residential leases and supplementing Title 2A of the New Jersey Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Except as provided in section 1 of P.L.1976, c.100 (C.2A:42-6.1), a person to whom rent is due and payable under a residential lease may impose a late fee equal to one percent of the delinquent rental payment for each business day the rent remains unpaid; however, the late fee shall not exceed seven percent of the amount of the initial delinquency.  For the purposes of this section, each missed payment shall constitute a new delinquency.

 

     2.    This act shall take effect immediately and shall be applicable to all residential leases executed following that effective date.

 

 

STATEMENT

 

     This bill would impose a statutory cap on the amount of the late fee a landlord may charge as a penalty for a late payment of rent under residential leases.  The bill allows a landlord to impose a late fee equal to one percent of the delinquent rental payment for each business day the rent is overdue.  The landlord is prohibited from imposing a fee of more than seven percent of the delinquency on the tenant.

     This bill would be effective immediately, but would only be applicable to residential leases executed after its effective date in order to avoid running afoul of the "contract clause" of the federal and State constitutions.