Sponsored by:
Assemblyman JOHN ARMATO
District 2 (Atlantic)
Assemblyman VINCENT MAZZEO
District 2 (Atlantic)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Senator BRIAN P. STACK
District 33 (Hudson)
Co-Sponsored by:
Assemblyman Houghtaling
SYNOPSIS
Concerns information on property condition disclosure statement.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the disclosure of certain information prior to the sale of real estate and amending P.L.1999, c.76.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L. 1999, c.76 (C.56:8-19.1) is amended to read as follows:
1. Notwithstanding any provision of P.L.1960, c.39 (C.56:8-1 et seq.) to the contrary, there shall be no right of recovery of punitive damages, attorney fees, or both, under section 7 of P.L.1971, c.247 (C.56:8-19), against a real estate broker, broker-salesperson, or salesperson licensed under R.S.45:15-1 et seq. for the communication of any false, misleading, or deceptive information provided to the real estate broker, broker-salesperson, or salesperson, by or on behalf of the seller of real estate located in New Jersey, if the real estate broker, broker-salesperson, or salesperson demonstrates that he:
a. Had no actual knowledge of the false, misleading or deceptive character of the information; and
b. Made a reasonable and diligent inquiry to ascertain whether the information is of a false, misleading, or deceptive character. For purposes of this section, communications by a real estate broker, broker-salesperson, or salesperson which shall be deemed to satisfy the requirements of a "reasonable and diligent inquiry" include, but shall not be limited to, communications which disclose information:
(1) provided in a report or upon a representation by a person, licensed or certified by the State of New Jersey, including, but not limited to, an appraiser, home inspector, plumber or electrical contractor, or an unlicensed home inspector until December 30, 2005, of a particular physical condition pertaining to the real estate derived from inspection of the real estate by that person;
(2) provided in a report or upon a representation by any governmental official or employee, if the particular information of a physical condition is likely to be within the knowledge of that governmental official or employee; or
(3) that the real estate broker, broker-salesperson, or salesperson obtained from the seller in a property condition disclosure statement, which form shall comply with regulations promulgated by the director in consultation with the New Jersey Real Estate Commission, provided that the real estate broker, broker-salesperson, or salesperson informed the buyer that the seller is the source of the information and that, prior to making that communication to the buyer, the real estate broker, broker-salesperson, or salesperson visually inspected the property with reasonable diligence to ascertain the accuracy of the information disclosed by the seller. The director shall require that if a property condition disclosure statement contains information indicating the seller’s awareness of water leakage, accumulation or dampness, the presence of mold or other similar natural substance, or repairs or other attempts to control any water or dampness problem on the real property, the real estate broker, broker-salesperson, or salesperson shall refer the buyer of the real property to the “Mold Guidelines for New Jersey Residents” pamphlet on the Department of Health Internet website, or other pamphlet or guidelines deemed appropriate by the director. If requested by the buyer, the real estate broker, broker-salesperson, or salesperson shall provide the buyer with a physical copy of the pamphlet.
Nothing in this section shall be interpreted to affect the obligations of a real estate broker, broker-salesperson, or salesperson pursuant to the "New Residential Construction Off-Site Conditions Disclosure Act," P.L.1995, c.253 (C.46:3C-1 et seq.), or any other law or regulation.
(cf: P.L.2004, c.18, s.2)
2. This act shall take effect on the first day of the third month next following enactment.
STATEMENT
This bill requires that if a property condition disclosure statement contains information indicating the seller’s awareness of water leakage, accumulation or dampness, the presence of mold or other similar natural substance, or repairs or other attempts to control any water or dampness problem on the real property, the real estate broker, broker-salesperson, or salesperson is to refer the buyer of the real property to the “Mold Guidelines for New Jersey Residents” pamphlet on the Department of Health Internet website, or other pamphlet or guidelines deemed appropriate by the director. However, under the amended bill, the real estate broker, broker-salesperson, or salesperson is required to provide the buyer with a physical copy of the pamphlet if requested by the buyer.