New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A4994

Introduced
1/10/23  

Caption

Establishes certain requirements if purchasing and reselling same single-family home within one year of receiving certificate of occupancy.

Impact

This legislation serves to protect consumers purchasing homes from short-term resellers by requiring compliance with state construction codes. An additional benefit is the mandated home inspection prior to closing, which is to be conducted by a New Jersey-licensed home inspector, thereby minimizing the risk of unaddressed construction code violations. If damages occur as a result of noncompliance, buyers have the right to seek legal recourse against the reseller, which may include claiming actual damages and reasonable attorney’s fees. This legislative effort aims to enhance transparency in the real estate market and ensure that homes are safe and compliant with established codes.

Summary

Assembly Bill A4994 establishes clear requirements for individuals or entities known as short-term resellers of single-family homes, specifically those who purchase a home, make alterations or renovations, and then resell it within one year after receiving a certificate of occupancy. The bill mandates that any resale of these homes must be accompanied by a signed attestation from the reseller confirming compliance with the State Uniform Construction Code (UCC) throughout their ownership. This attestation will be required to form part of the sales contract, ensuring that buyers are informed of the compliance status of the property they intend to purchase.

Contention

While the bill provides significant protections for buyers, it also highlights potential points of contention, particularly regarding the liabilities of licensed home inspectors versus short-term resellers. While home inspectors can be penalized for negligence, they are protected from liability if they demonstrate a good faith effort in the assessment of compliance with UCC requirements. Additionally, the imposition of a penalty of up to $10,000 on a reseller for false attestations raises concerns about the enforcement of these provisions and the impact on small property investors who may find it challenging to meet stringent compliance assessments within a tight timeframe. Additionally, the need for public education by the Department of Community Affairs introduces discussions about the costs and effectiveness of such an initiative.

Companion Bills

NJ S2850

Same As Establishes certain requirements if purchasing and reselling same single-family home within one year of receiving certificate of occupancy.

Previously Filed As

NJ S2850

Establishes certain requirements if purchasing and reselling same single-family home within one year of receiving certificate of occupancy.

NJ S1038

Establishes certain requirements if purchasing and reselling same single-family home within one year of receiving certificate of occupancy.

NJ S4615

"Protection of Homeownership and Limiting Institutional Investor Acquisition Act"; imposes limitations and establishes certain incentives and disincentives concerning acquisition of single-family residences.

NJ A5451

Prohibits certain institutional investors from purchasing or acquiring single-family homes.

NJ A1673

Requires fire suppression systems in new single and two family homes.

NJ A2426

Requires fire suppression systems in new single and two family homes.

NJ S996

Requires fire suppression systems in new single and two family homes.

NJ A2873

Revises homestead property tax reimbursement eligibility requirements for certain claimants relocating homesteads within the same municipality.

NJ A4360

"New Jersey Design Professional Self-Certification Act"; requires DCA to establish design professional self-certification program.

NJ S3402

"New Jersey Design Professional Self-Certification Act"; requires DCA to establish design professional self-certification program.

Similar Bills

NJ S2850

Establishes certain requirements if purchasing and reselling same single-family home within one year of receiving certificate of occupancy.

NJ S3159

Establishes consumer-facing portal for elevator maintenance for owners of certain buildings to provide information on elevator servicer; requires certain signage; requires DCA to establish senior housing elevator maintenance loan program.

NJ A5831

Establishes consumer-facing portal for elevator maintenance for owners of certain buildings to provide information on elevator servicer; requires certain signage; requires DCA to establish senior housing elevator maintenance loan program.

MS HB959

Comprehensive Hurricane Damage Mitigation Program; extend repealer on.

MS SB2416

Comprehensive Hurricane Damage Mitigation Program; extend repealer on development and implementation of program.

CT SB00975

An Act Concerning Revisions To The Transportation Statutes And The Designation Of Roads And Bridges In Honor Or In Memory Of Persons And Organizations.

MS SB2413

The "Strengthen Mississippi Homes Program"; designate and prescribe mitigation requirements.

NJ A672

Creates the "Mold Safe Housing Act."