New Jersey Assembly Bill A4614

New Jersey 2024-2025 Regular Session

• Introduced: 6/20/24
• Refer: 6/20/24

Caption

Requires notification of rent leveling controls at time of closing of real estate transaction.

Impact

The implementation of A4614 will serve to standardize the disclosure process related to rent control across real estate transactions. By requiring this notification, the bill intends to inform potential buyers about any existing rent leveling laws that could impact the property, thereby protecting consumer rights and promoting more informed decision-making. Additionally, this requirement can potentially mitigate disputes in the future regarding what a buyer was aware of about rental limitations upon purchasing the property.

Summary

Assembly Bill A4614, introduced by Assemblywoman Lisa Swain, mandates that in any real estate transaction involving the purchase of residential property in New Jersey, certain notifications regarding rent control or rent leveling ordinances must be provided to the buyer at closing. This legislation aims to enhance transparency and awareness about local rent regulations that may affect a property when rental opportunities arise. The bill stipulates that sellers, along with their real estate agents and attorneys, are responsible for delivering this information as part of the property condition disclosure statement.

Contention

While the bill has clear intentions to protect consumers, there may be points of contention regarding the burdens it places on sellers and real estate professionals. Critics might argue that the added requirement for disclosures could complicate or delay real estate transactions, particularly in a market where time is sensitive. Furthermore, there may be concerns over the effectiveness of the notification itself, specifically if buyers misinterpret the legal jargon or fail to consult local ordinances as recommended.

Notable_points

A4614 does not amend existing rent control laws but instead ensures that buyers are scrupulously made aware of them before purchase. The bill also requires that this notice be memorialized in writing, either in hard copy or electronically, ensuring that there is a verifiable acknowledgment from the buyer, which could potentially offer legal protection to the sellers against future claims.