CONAWAY HOMEBUYER PROTECTION BILL ADVANCES

Measure Aimed at Alerting Consumers about Flood-Damaged Properties;
Assemblyman Says Recent Flooding Lends Greater Urgency for Consumer Protection Measure

(DELRAN) - Owners of flood-damaged properties and homes with serious structure defects would be required to disclose those conditions to prospective purchasers under legislation sponsored by Assemblyman Herb Conaway, M.D. and released today by the Assembly Consumer Affairs Committee.

The bill (A-1635) would require sellers of real estate to provide buyers with a complete property condition disclosure statement that would be required to include information about any water damage or leakage that the property ever suffered and the level of expertise of the seller.  The statement would have to comply with regulations advertised by the Director of Consumer Affairs, in consultation with the New Jersey Real Estate Commission.

Conaway said the bill is especially relevant in the wake of the April floods that damaged hundreds of homes across the state.

"It is morally and ethically wrong for prospective homeowners to be in the dark about essential information like serious damage and previous repairs in a home," said Conaway.  "The safeguards in this bill would ensure that the American Dream of homeownership does not turn into a nightmare for unwary consumers."

Assemblyman Conaway crafted his bill in response to a local family that discovered massive water damage in their home six months after purchasing the property.  The damage - of which both the seller and agent were allegedly aware but never disclosed - was so extreme that it threatened the stability of the floors and walls of the home, forcing the family to vacate the home and initiate prolonged litigation against the property's seller and real estate agency.

The bill - which exempts new construction from the disclosure requirement - states that in cases where the seller provides the information to his real estate broker or salesperson, the broker or salesperson
would be required to forward it to the buyer and inform the buyer that the seller is the source of information.  It also specifies that in private sales, the seller would provide the disclosure statement directly to the buyer.

"We must do all that we can to protect hardworking families from the financial hardship of being deceived into buying a substandard home," said Conaway.  "Knowingly failing to disclose structural defects in a home to a buyer is tantamount to fraud."

The bill also is sponsored by longtime consumer affairs advocate, Assemblyman Paul Moriarty (D-Washington Township).
The Assembly Consumer Affairs Committee unanimously approved the measure.  It now heads to the Assembly Speaker, who decides if and when to post it for a vote.

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