N.J. Admin. Code § 5:26-6.5

Current through Register Vol. 56, No. 9, May 6, 2024

Section 5:26-6.5 - Provisions prohibited

(a) It shall be unfair and unreasonable for any of the following clauses or provisions to appear in a contract or agreement for the disposition of a lot, parcel, unit or interest in a planned real estate development or retirement community:

1. A clause or provision necessitating the forfeiture of more than 10 percent of the purchase price plus the cost of any extras installed as liquidated damages in the event of non-compliance;

2. A clause or provision requiring the purchase to close prior to the issuance of a temporary certificate of occupancy on his unit;

3. A clause or provision requiring the purchaser to waive any right granted by the Act or this chapter;

4. A clause or provision requiring the purchaser to close prior to the date specified in the contract;

5. A clause or provision giving the developer the right of entry in, over or through the purchaser's lot, parcel, unit or interest after closing, other than for construction, repair, emergency matters or by governmental order or requirement;

6. A clause or provision permitting the substitution of materials or equipment by the developer that are not comparable without the prior written consent of the purchaser;

7. A clause or provision requiring the adjustment of taxes, municipal charges, utility rents, hazard insurance premiums, or any other adjustments as of any date other than closing or possession, whichever comes first;

8. A clause or provision giving the developer the right to increase the purchase price of the lot, parcel, unit or interest without requiring 60 days notice to the purchaser of the increase and without allowing the right of rescission within 10 days of said notice;

9. A clause or provision providing that a closing date may be delayed due to circumstances involving weather, strikes, lockouts or other labor disputes involving the developer or the suppliers, delays in the issuance of permits or inspections, or any other similar reasons unless there is a time limit placed on the permissible delay after which the purchaser may terminate the contract without penalty;

10. A clause or provision giving the developer, the association, the governing board of the association or their agents the option of repurchase, the right of first refusal or other similar option or right.

N.J. Admin. Code § 5:26-6.5

As amended, R.1979 d.439, eff. 11/1/1979.
See: 11 New Jersey Register 497(a), 11 New Jersey Register 610(b).