Requires provisions regarding sellers' obligation to deliver marketable and insurable title in certain residential real estate contracts of sale.
Impact
The bill directly supplements the existing 'Fair Foreclosure Act' in New Jersey, enhancing protections for buyers of foreclosed properties. It establishes specific repercussions for sellers who fail to meet their obligations regarding title provision. If a seller does not deliver a marketable and insurable title as required, this noncompliance constitutes a breach of contract, which entitles the buyer to a refund of any deposits made and reimbursement for any related expenses incurred during the transaction. This shift serves to fortify consumer rights within the real estate market.
Summary
A2041 requires that sellers of residential properties, specifically those that have been foreclosed upon, deliver marketable and insurable title in contracts of sale. This legislation aims to safeguard new purchasers of these properties from the seller's failure to fulfill their contractual obligations regarding title, which is a common issue in real estate transactions involving foreclosed properties. In essence, the bill mandates that any sale contract stipulates that the seller must provide a clear and valid title to the buyer.
Contention
Discussions around A2041 may involve viewpoints regarding the balance of protections between buyers and the responsibilities of sellers in real estate transactions. Potential contention points could include concerns from real estate entities about the implications of strict title requirements and liabilities, along with an assessment of the overall impact on the housing market dynamics, particularly for foreclosed properties. Critics may argue whether such measures could dissuade lenders from selling foreclosures, while proponents would highlight the necessity of consumer protection in the wake of financial distress situations faced by homeowners.
Carry Over
Requires provisions regarding sellers' obligation to deliver marketable and insurable title in certain residential real estate contracts of sale.
Contract requirements for deeds between investor sellers and purchasers of residential real property modified, recording provisions modified, disclosures required, right to cancel provided, and civil remedies authorized.
Contract for deed requirements between investor sellers and purchasers of real property modification; recording provisions modifications; disclosures requirement; right to cancel and civil remedies authorization
An Act Concerning The Removal Of Unauthorized Persons From Real Property, Continuing Education Requirements For Real Estate Licensees, Requiring A Study Of Residential Real Property Wholesaling And Revising The Title Of A Real Estate Salesperson To A Real Estate Agent.
Permits tenant to purchase residential property in certain circumstances 45 days after successful submission of bid during sheriff's sale and includes new procedures for sheriff's sale.