There aren’t any required disclosures for sellers under NJ statutes, but NJ courts have made exceptions to this general rule under the common law. These exceptions protect buyers from sellers who won’t disclose material facts and crucial information.
These are your obligations as a seller in NJ:
- You must promise that the home is fit for habitation
NJ law dictates that when you put a home in the market, you’re implying that it’s fit to live in under the “implied warranty of habitability” clause.This means that the water supply is potable, the residence was built in compliance with local rules and regulations, and so on. The law applies whether or not you actually say that the home is reasonably habitable – you can’t tiptoe around this requirement by selling “as is.”Selling property “as is” in the state indicates that the seller isn’t willing to make repairs to the home. However, the buyer retains the right to cancel the sales contract if the inspection reveals serious defects that can’t easily be fixed.
- You must divulge known, latent, and material defects
Common law protects buyers from purchasing a residence with known, latent (or concealed) material defects. For instance, if the roof leaks during heavy rains, you must disclose this fact even if there’s no obvious evidence.It’s doubly important to disclose hidden issues that may have a negative effect on inhabitants’ health and safety. If your property’s test results for radon levels go above what’s considered safe, inability to disclose this may lead to legal action against you in the future.Any materially false statement or material omission you make, orally or in writing, can be legal bases for fraud and misrepresentation. You could face a lawsuit if these statements or omissions cause loss to the buyer or make the residence uninhabitable.
The buyer can file a lawsuit before or after closing. They may also file many years after the transaction, depending on NJ’s statute of limitations, or the number of years during which a lawsuit may take place.
- You must discuss representations and disclosures included in the sales contract
The contract is usually a standard form that has been prepared by a licensed listing agent or Realtor in NJ, and it should include representations or the promises you’re making to the buyer, such as:- All systems and equipment that service the property are in good working order – not necessarily brand new or in perfect condition, just that they work fine for their age.
- How the property has been used, along with a statement that it has been used in accordance with local zoning laws.
- Whether or not you’ve made improvements that require permits from the municipality. If you made improvements, you must state that you secured final approvals for the work done.
- You must talk about intangible problems if asked
These refer to problems that make the home undesirable to live in, but can’t be detected through a typical inspection. Death on the property and alleged supernatural occurrences can create stigma around the home despite having no bearing on its physical condition. You don’t have to disclose such things in NJ, but if the buyer asks, you need to give an honest response.
Contracts are complex documents that make use of legal jargon. A Realtor can help you make sense of it. Call the Pagnotta Homes Team at 908.436.7947 or send an email to cindy(at)pagnottahomes(dotted)com.