Bill
Bill > A2538
NJ A2538
NJ A2538Requires sellers and secured parties to deliver certificates of ownership to motor vehicle buyers in timely manner.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill requires sellers and other secured parties to deliver certificates of ownership to motor vehicle buyers within 30 days of the performance of a contract or the terms of a security agreement. Sellers and secured parties are prohibited from charging a fee for the delivery of a certificate of ownership. Under the bill, it is an unlawful practice and a violation of the consumer fraud act for sellers and secured parties to fail to comply with the provisions of the bill. 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 of the consumer fraud act 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 requires sellers and secured parties, such as lenders, to provide motor vehicle buyers with the certificate of ownership, which is the official document proving ownership of a vehicle, within 30 days after a contract is fulfilled or a security agreement, which is a contract that uses the vehicle as collateral for a loan, is satisfied. Sellers and secured parties are also prohibited from charging any fees for delivering this certificate. Failure to comply with these requirements is considered an unlawful practice under the state's consumer fraud act, which can lead to penalties including fines of up to $10,000 for a first offense and $20,000 for subsequent offenses, as well as cease and desist orders from the Attorney General, punitive damages, and treble damages and costs awarded to the buyer. The bill also makes a minor change to who the seller or secured party files a notice with after the contract is fulfilled, changing it from the "director" to the "chief administrator," and updates the penalty for violating a different part of the law from $25.00 to $25.
Committee Categories
Transportation and Infrastructure
Sponsors (1)
Last Action
Introduced, Referred to Assembly Transportation and Independent Authorities Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A2538 |
| BillText | https://pub.njleg.gov/Bills/2026/A3000/2538_I1.HTM |
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