What types of properties must be registered under the New Jersey Real Estate Sales Full Disclosure Act and Timeshare Acts?
Out of state residential subdivided lands, condominiums, timeshares, and properties subject to an "owners association" offered for sale through a common promotional plan when offered in or into New Jersey; as well as timeshares located in New Jersey. Subdivisions containing less than 100 lots, commercial properties, individual listings, non timeshare communities consisting wholly of rental units and certain limited timeshare offerings are exempt. In addition, the Act allows the Commission to issue exemptions when registration is not necessary due to the small number of properties involved or the limited character of the offering. Certain residential offerings may qualify for a Secondary Registration, an expedited filing procedure.
What constitutes an "offering" in New Jersey?
Sales promotions conducted physically within New Jersey. The publication or mailing into New Jersey of any promotional materials (including materials offering discounted vacations, gifts or premiums) for the purpose of inducing the purchase of an interest in a regulated subdivisions well as telemarketing activities directed into New Jersey also constitute an offering.
What is the cost of registration?
For non timeshare filings, including Secondary Registrations, an application fee of $500, plus an additional fee of $35 per lot, parcel or unit being offered. Filing fees are capped at a combined maximum of $3000. The fees for timeshare filings include an application fee of $1000, plus $50 per timeshare interest with a total combined maximum fee of $7500.
Are there any special requirements for licensees to market registered properties?
Yes. A registrant must designate a currently licensed New Jersey broker as a "Broker of Record" in the initial registration application. The registrant may also designate additional or "Supplemental Brokers" to offer and market the registered property in New Jersey. There is no fee for adding or substituting brokers. All "Authorized Brokers" are issued a special license known as a "Broker’s Release". Only "Authorized Brokers" may offer regulated property in New Jersey. Brokers should ascertain the status of a project before offering or advertising any regulated properties in New Jersey. Applicants filing a Secondary Registration application do not have to designate an authorized broker, but their marketing activities in New Jersey are still subject to New Jersey Real Estate Licensing requirements.
What are some of the major consumer protections provided under these laws?
All New Jersey residents solicited under the jurisdiction of these laws are entitled to an absolute minimum 7 day right to rescind their purchase. They are also entitled to receive a Public Offering Statement or Prospectus which provides detailed information about the offering. The acts require that all purchaser funds must be held in escrow without cost or penalty to the consumer, or protected by a bond or other financial surety until closing of title.
In addition, in order to qualify for a registration, an applicant must demonstrate that they can convey title to the properties being offered, and that they have the wherewithal to complete all promised improvements.
What types of timeshares are required to be registered?
Except for some limited exemptions, all fee and non fee timeshares, including fractional ownership, point based offerings and multi site timeshares are required to be registered under the Timeshare Act.