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Bill > S4087


NJ S4087

NJ S4087
Provides that sale of real estate by homeowner is subject to consumer fraud act.


summary

Introduced
02/03/2025
In Committee
02/03/2025
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill provides that the sale of real estate by a homeowner is subject to the consumer fraud act. Specifically, the bill provides that the use of various fraudulent practices in connection with the sale or advertisement of real estate, including the sale of real estate by a homeowner, is an unlawful practice and a violation of the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.). Pursuant to current law, the consumer fraud act only applies to commercial or professional sales of real estate. An unlawful practice under the consumer fraud act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.

AI Summary

This bill expands the Consumer Fraud Act in New Jersey to explicitly cover real estate sales by homeowners, not just commercial or professional real estate transactions. Specifically, the bill amends the existing law by adding "real estate" to the definition of "merchandise" and introduces a new section that makes it an unlawful practice for any person to engage in deceptive, fraudulent, or abusive practices when selling or advertising real estate, including sales by individual homeowners. The bill defines such unlawful practices as including unconscionable actions, fraud, false promises, misrepresentations, or intentionally concealing or suppressing material facts about a property, regardless of whether someone has actually been misled or damaged. Under the existing Consumer Fraud Act, violations can result in significant penalties, including monetary fines up to $10,000 for a first offense and $20,000 for subsequent offenses, potential cease and desist orders from the Attorney General, punitive damages, and the possibility of the injured party receiving treble damages and legal costs. The bill will take effect 30 days after its enactment, providing immediate consumer protection for real estate transactions by homeowners.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 02/03/2025)

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