Bill Text: NJ S2850 | 2022-2023 | Regular Session | Amended
Bill Title: Establishes certain requirements if purchasing and reselling same single-family home within one year of receiving certificate of occupancy.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2023-06-01 - Reported from Senate Committee with Amendments, 2nd Reading [S2850 Detail]
Download: New_Jersey-2022-S2850-Amended.html
Sponsored by:
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Establishes certain requirements if purchasing and reselling same single-family home within one year of receiving certificate of occupancy.
CURRENT VERSION OF TEXT
As reported by the Senate Community and Urban Affairs Committee on June 1, 2023, with amendments.
An Act concerning sales of certain single-family homes, and supplementing P.L.1975, c.217 (C.52:27D-119 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Commissioner" means the Commissioner of Community Affairs.
"Short-term reseller" means a single-family homeowner, including any person, firm, corporation, bank as defined pursuant to P.L.1975, c.265 (C.17:16E-1 et seq.), or other entity who (1) purchased a single-family home; (2) renovated, enlarged, repaired, or in any way altered the home; and (3) offered the home for resale within one year of the receipt of the certificate of occupancy.
"Single-family home" means a detached private residential structure 1[or a private residential townhome attached to another private residential structure] serving as the primary residence for a short-term reseller1.
2. a. 1[A real estate broker, broker-salesperson or salesperson licensed under R.S.45:15-1 shall obtain from a short-term reseller and make part of a contract of sale for a single-family home an attestation, signed by the short-term reseller, affirming that the short-term reseller complied with the State Uniform Construction Code requirements promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123) for the duration of the short-term reseller's ownership of the home.
b. If a short-term reseller is not using the services of a real estate broker, broker-salesperson, or salesperson licensed under R.S.45:15-1 for the purposes of the sale of a single-family home, the short-term reseller shall provide and make part of the contract for sale for the single-family home an attestation as is required in subsection a. of this section.
c. A contract of sale for a single-family home shall include an attestation signed by the buyer in which the buyer agrees to comply, for the duration of the buyer's ownership of the home with all permitting requirements under the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123).
d. Prior to the completion of the closing process, an inspection of a single-family home purchased from a short-term reseller shall be conducted by a New Jersey-licensed home inspector to ensure any renovation, enlargement, repair or other alteration was performed in accordance with the requirements of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123). The buyer of the single-family home shall select the home inspector and the cost of the inspection shall be paid for by the short-term reseller through the provision of a credit to the buyer at the time of closing or by any other means agreed to by both the short-term reseller and the buyer.] After the sale of a single-family home by a short-term reseller to the buyer, the reseller shall retain in escrow, for four months following the sale, the greater of five percent of the sale price or $10,000.
b. The funds held in escrow shall be used to reimburse the buyer for damages arising from any renovation, enlargement, repair, or other alteration to the plumbing, electrical, or heating, ventilating, air conditioning, and refrigeration systems of the single-family home by the reseller that was not performed in accordance with the requirements of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123).1
1[3. a. Any short-term reseller who falsely attests to complying with the State Uniform Construction Code requirements promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123) in the attestations required pursuant to subsections a., b., and c. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall, in addition to any other penalty provided by law, be liable to a penalty of up to $10,000.
b. (1) A licensed home inspector who performs an inspection pursuant to subsection d. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be liable for the failure to identify a violation of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123) if it is demonstrated that the inspector made a good faith effort to ensure the renovation, enlargement, repair, or other alteration was made in compliance with the requirements of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123).
(2) A licensed home inspector who performs an inspection pursuant to subsection d. of section 2 of P.L. , c. (C. ) pending before the Legislature as this bill) and fails to identify a violation of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123), may incur an administrative penalty, as determined by the commissioner, if it is demonstrated that the failure to identify a violation is the result of the negligence or bad faith of the inspector.
(3) A short-term reseller shall have no private cause of action against a licensed home inspector who fails to identify a violation of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123).]1
1[4. Notwithstanding any other penalty provided by law, a person or entity who buys a single-family home from a short-term reseller and who sustains damages within the first year after the purchase of the home as a result of noncompliance by the short-term reseller with the requirements of the State Uniform Construction Code as promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123) may bring an action against the short-term reseller in a court of competent jurisdiction. The court may award actual damages sustained as a result of the noncompliance, reasonable attorney's fees, costs of suit, and any other remedy available at law.]1
13. a. A short-term reseller shall complete a property condition disclosure statement, pursuant to section 1 of P.L.1999, c.76 (C.56:8-19.1), to inform a potential buyer of the condition of a single-family home prior to the sale of the home.
b. It shall be deemed an unlawful practice pursuant to P.L.1960, c.139 (C.56:8-1 et seq.) for the short-term reseller to include information on the statement required pursuant to subsection a. of this section that is deceptive, fraudulent, or misrepresentative of the conditions of the single-family home, or that knowingly conceals, suppresses, or omits a material fact in regards to the condition of the home.1
14. For purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), any short-term reseller who performs plumbing, electrical, or heating, ventilation and air conditioning services on a single-family home, for which a permit is taken under a certification in lieu of oath pursuant to the State Uniform Construction Code requirements, promulgated by the commissioner pursuant to section 5 of P.L.1975, c.217 (C.52:27D-123), shall attest that the short-term reseller occupied the single-family home as the short-term reseller's primary residence while the work was being performed. In addition to any other penalties provided by law, if it is determined that the certification in lieu of oath was falsely attested to, the short-term reseller shall be subject to the penalties provided by subsection e. of section 12 of P.L.1978, c.73 (C.45:1-25).1
5. The department shall develop and undertake a public education program designed to inform the residents of this State of the provisions of this act.
6. This act shall take effect on the first day of the seventh month next following enactment and shall apply to contracts of sale for a single-family home agreed to on or after the effective date.
