New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A835

Introduced

1/9/24

Refer

1/9/24

Caption

Criminalizes certain actions of individuals who offer rental of residential property that they do not own or legally possess.

Impact

If enacted, A835 would significantly expand the legal tools available for prosecuting fraudulent landlords, reinforcing the New Jersey Consumer Fraud Act. Because it categorically criminalizes the behavior of individuals who misrepresent their ownership of rental properties, it aims to protect consumers from deceitful practices prevalent in the rental market. Violators could face penalties including a term of imprisonment of up to 18 months or fines of up to $10,000, thus enhancing state laws against housing fraud.

Summary

Assembly Bill A835 is a new legislative proposal aimed at addressing the issues of fraudulent rental practices occurring in New Jersey, specifically targeting individuals known as 'imposter landlords.' These are individuals who rent out or advertise residential dwellings that they do not own or legally possess, often using online platforms for their activities. The bill explicitly criminalizes these actions, making it a crime of the fourth degree for anyone who unlawfully claims ownership or possession of a residential property for the purpose of renting it out or obtaining another benefit.

Contention

While the intent of the bill is directed towards curbing fraudulent activities, it also includes notable cautionary measures. The legislation does not apply to individuals who have a lawful occupancy interest in a property, nor does it impose liability on real estate professionals acting in good faith. This aspect is crucial as it seeks to maintain the balance between curbing fraud and ensuring that legitimate transactions are not inadvertently criminalized. Additionally, the bill has drawn attention due to its potential implications for enforcement against various online platforms used to facilitate illegal rentals.