Sponsored by:
Assemblyman JOHN F. MCKEON
District 27 (Essex and Morris)
Assemblywoman AURA K. DUNN
District 25 (Morris and Somerset)
Co-Sponsored by:
Assemblywoman Downey
SYNOPSIS
Repeals law concerning excess rates and charges for title insurance; makes agreement to use services of title or settlement service company subject to attorney review.
CURRENT VERSION OF TEXT
As reported by the Assembly Financial Institutions and Insurance Committee on December 13, 2021, with amendments.
An Act concerning title insurance1, supplementing P.L.1975, c.106,1 and repealing section 39 of P.L.1975, c.106.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 39 of P.L.1975, c.106 (C.17:46B-39) is repealed.
12. a. Notwithstanding the provisions of this act nothing herein shall prevent a consumer from exercising their free choice in the selection of the title or settlement services company of their choosing. Any agreement by a consumer to use the services of a title or settlement service company shall be subject to the attorney review, if any, which is part of the contract for sale of real estate and may be revoked in the same manner as provided in the contract for the sale of real estate.
b. A person who violates the provisions of this section shall be:
(1) for a first violation, subject to a 90 day business license suspension;
(2) for a second violation:
(a) subject to a 180 day business license suspension; and
(b) liable to a penalty of not more than $1,000 for each violation; and
(3) for a third and any subsequent violation:
(a) subject to a one year business license suspension; and
(b) liable to a penalty of not more than $2,500 for each violation.1
1[2.] 3.1 This act shall take effect immediately.