N.J. Admin. Code § 7:1I-4.5

Current through Register Vol. 56, No. 11, June 3, 2024

Section 7:1I-4.5 - Evidence of good faith sale

(a) Except as provided in 7:1I-4.7 and 4.8, within 60 days after the signing of a binding agreement of sale and the closing of the sale for the subject property, the claimant shall submit the following documents to the Department:

1. Copies of all listing agreements for the sale of the subject property;

2. Copies of all written offers to purchase the subject property;

3. A copy of the contract of sale of the subject property;

4. Copies of all settlement statements, including, without limitation the Settlement sheet(s) required by the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C.A.§ 2601 et seq. and the HUD-1 Uniform Settlement Statement form if required by 24 CFR 3500.8;

5. A copy of the deed conveying the subject property together with a copy of the transmittal letter forwarding the deed to the county clerk or register of deeds and mortgages for recording;

6. An affidavit by the claimant, signed by the person required to sign the claim and certified in accordance with 7:1I-1.7, stating the following:

i. The sale price of the subject property without closing adjustments;

ii. That neither the claimant nor any person not listed on the settlement statements has received any money or other compensation from any person in connection with the subject property, except as set forth on the settlement statements; and

iii. That the documents submitted pursuant to (a)1 through 5 above are delivered in connection with the sale of the subject property; and

7. An affidavit by the claimant's realtor, stating the following:

i. That the realtor is a member of a multiple listing service, and listed the property for sale with a multiple listing service (or its commercial equivalent, for claims involving commercial property or other properties not normally offered for sale through a multiple listing service);

ii. The period of time the subject property was offered for sale, and the period of time the property was listed for sale with the multiple listing service;

iii. The initial listing price;

iv. All changes in the listing price, and the dates of such changes;

v. A record of all inquiries received from potential purchasers regarding the subject property, and of all showings or open houses held in the course of offering the subject property for sale, including the names and addresses of all persons who inquired about the subject property, were shown the subject property, or attended open houses at the subject property, and a description of the responses of these persons to the subject property; and

vi. A record of the amount and date of each offer made for the purchase of the subject property.

(b) A determination by the Department that the claimant arrived at the sale price in good faith shall not preclude the Department from determining that any other aspect of the sale of the subject property was not in good faith.

(c) The Department may deny the claim or adjust the amount eligible for compensation, if based upon the evidence required under (a) above, the Department determines that any aspect of the sale of the subject property was not in good faith.

N.J. Admin. Code § 7:1I-4.5

Amended by R.1999 d.91, effective 3/15/1999.
See: 30 New Jersey Register 4157(a), 31 New Jersey Register 763(a).
In (a), substituted a reference to 60 days for a reference to 10 days in the introductory paragraph.