New Jersey Assembly Bill A3317

New Jersey 2022-2023 Regular Session

• Introduced: 3/7/22
• Refer: 3/7/22

Caption

Establishes residential property wholesaler license.

Impact

The bill introduces several regulatory measures intended to enhance consumer protection in residential property transactions. It mandates wholesalers to provide sellers with a disclosure at least three days prior to submitting an offer. This disclosure should inform homeowners about resources to assess property values and their rights, including the ability to seek legal counsel. Additionally, the legislation stipulates that property wholesalers who engage in business without a license may have any sales agreements rescinded by the homeowner at any point before the title transfer.

Summary

A3317 is a legislation that establishes a licensing framework for residential property wholesalers in New Jersey. This bill defines a residential property wholesaler as any individual or entity engaging in the solicitation or purchase of residential properties for sale but not for personal residence use. The proposed law requires these wholesalers to obtain a valid license from the New Jersey Real Estate Commission before conducting any business. It outlines the prerequisites for obtaining a license, including the submission of an application, a non-refundable fee, and proof of insurance.

Contention

While supporters argue that the bill protects homeowners against unethical practices, some critics express concern about the potential burden it may place on wholesalers and the real estate market. The requirements for disclosure and licensing could complicate transactions and create barriers for entry in the wholesaling market. Furthermore, the bill establishes penalties for violations, with fines up to $2,000 per offense, leading to discussions about enforcement and the implications for legitimate property transactions.