Sponsored by:
Senator PAUL D. MORIARTY
District 4 (Atlantic, Camden and Gloucester)
SYNOPSIS
Provides that sale of real estate by homeowner is subject to consumer fraud act.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning real estate and consumer fraud and amending and supplementing P.L.1960, c.39.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1960, c.39 (C.56:8-1) is amended to read as follows:
1. (a) The term "advertisement" shall include the attempt directly or indirectly by publication, dissemination, solicitation, indorsement or circulation or in any other way to induce directly or indirectly any person to enter or not enter into any obligation or acquire any title or interest in any merchandise or to increase the consumption thereof or to make any loan;
(b) The term "Attorney General" shall mean the Attorney General of the State of New Jersey or any person acting on his behalf;
(c) The term "merchandise" shall include any objects, wares, goods, commodities, services, real estate, or anything offered, directly or indirectly to the public for sale;
(d) The term "person" as used in this act shall include any natural person or his legal representative, partnership, corporation, company, trust, business entity or association, and any agent, employee, salesman, partner, officer, director, member, stockholder, associate, trustee or cestuis que trustent thereof;
(e) The term "sale" shall include any sale, rental or distribution, offer for sale, rental or distribution or attempt directly or indirectly to sell, rent or distribute;
(f) The term "senior citizen" means a natural person 60 years of age or older.
(cf: P.L.1999, c.298, s.2)
2. (New section) The act, use, or employment by any person of a practice that is unconscionable or abusive, deception, fraud, false pretense, false promise, misrepresentation, or the knowing concealment, suppression, or omission of any material fact with intent that others rely upon that concealment, suppression, or omission, in connection with the sale or advertisement of real estate, including the sale of real estate by a homeowner, whether or not any person has in fact been misled, deceived, or damaged thereby, is an unlawful practice.
3. This act shall take
effect on the 30th day next following enactment.
STATEMENT
This bill provides that the sale of real estate by a homeowner is subject to the consumer fraud act.
Specifically, the bill provides that the use of various fraudulent practices in connection with the sale or advertisement of real estate, including the sale of real estate by a homeowner, is an unlawful practice and a violation of the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.). Pursuant to current law, the consumer fraud act only applies to commercial or professional sales of real estate.
An unlawful practice under the consumer fraud act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.