NJ Seller

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NJ Sellers Property Condition Disclosure
Statement Continuing Education Program
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Agenda

• Associate Sign-In
• Objectives
• Overview
• Tools for Implementation
• Weichert Policy
• Tools for Implementation (Cont.)
• Dialogue
• Question and Answer Period

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Objectives

• Understand how to use the new form of disclosure
  and the added protections it provides to
  licensees
• Comply with the requirements that must be met
  under the amended law
• Clearly and effectively articulate dialogue to
  buyers and sellers about the importance of
  obtaining a completed disclosure form

4
Overview

• Protections provided to you from liability under
  the Consumer Fraud Act
• The New Jersey Consumer Fraud Act (The Act)
  provides licensees with certain protections when
  they act in good faith in the communication of
  information that turns out to be false.
• The Act provides that there shall be no right of
  recovery of punitive damages, attorney fees or
  both under the Act for false, misleading or
  deceptive information conveyed to a buyer which
  had been provided to a real estate licensee by or
  on behalf of the seller of real estate if the
  real estate licensee
• (a) had no actual knowledge the information was
  false, misleading or deceptive, AND,
• (b) made a reasonable and diligent inquiry to
  ascertain if the information is of a false,
  misleading or deceptive character.

5
Tools for Implementation

• Four conditions that an associate must meet in
  order to satisfy the reasonable and diligent
  inquiry requirement under the Act
• The disclosure statement must be in the form
  adopted by the Division of Consumer Affairs,
•  
• The information contained in the disclosure
  statement must be obtained from the seller,
•  
• You must inform the buyer that the seller is the
  source of the information, AND
•  
• 4. Prior to making that communication to the
  buyer, you must have visually inspected the
  property with reasonable diligence to ascertain
  the accuracy of the information in the disclosure
  statement.

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Weichert Policy

• NJ Sellers Property Condition Disclosure
  Statement Policy
• Policy The Seller's Property Condition
  Disclosure Statement in the form adopted by the
• Division of Consumer Affairs, must
  be a part of EVERY Weichert real estate listing
• and should be requested from the
  seller when Weichert represents only the buyer.
• For a Weichert listing, the sellers associate
  must
• Obtain a completed Sellers Property Condition
  Disclosure Statement from the seller
• Inform the buyer that the seller is the source of
  the information AND
• Visually inspect the property with reasonable
  diligence to ascertain the accuracy of the
  information in the Sellers Property Condition
  Disclosure Statement prior to advising the buyer
  that the seller is the source of the information.
• Weichert will NOT accept a listing where the
  seller refuses to complete the Sellers Property
  Condition Disclosure Statement adopted by the
  DCA.
• Rationale By receiving a completed Sellers
  Property Condition Disclosure Statement from
• the seller, it minimizes our
  company's liability and the liability of our
  associates.
• Policy Sales Associates, Managers,
  Processing Managers
• Audience

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Tools for Implementation
Must be presented to the seller to complete
T292 Sellers Property Condition Disclosure
Statement
Important instructions for the seller to follow
prior to filling out the form
Associate must sign certification on last page
attesting to this fact.
8
Tools for Implementation

9
Tools for Implementation
84 Also includes Highlands restrictions (where
applicable)
91 Associate must check with the applicable
association to determine. The bankruptcy of the
seller or divorce proceedings are to be disclosed
here.
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Tools for Implementation
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Tools for Implementation
The listing associate is obligated to conduct a
visual inspection of the property to ascertain
the accuracy of the information provided by the
seller.
Buyers associate must obtain a copy and give a
fully executed copy to buyers. Buyers associate
is still obligated to make reasonable efforts to
ascertain all material information concerning the
physical condition of the property.
12
Tools for Implementation
T369- Notice to Buyers Regarding Sellers
Property Condition Disclosure Statement

• NOTICE TO BUYERS REGARDING SELLERS PROPERTY
  CONDITION DISCLOSURE STATEMENT
• A seller is under an obligation to disclose to
  a buyer all known material defects relating to
  the property being sold. The New Jersey Division
  of Consumer Affairs, effective May 17, 2004, has
  adopted a form of Sellers Property Condition
  Disclosure Statement that is designed to assist
  sellers in complying with disclosure requirements
  and to assist buyers in evaluating the property
  being considered. Sellers are not, however,
  obligated to complete the Disclosure Statement.
  A copy of the form of Disclosure Statement is
  annexed for your information and review.
• Buyers are hereby advised that the
  Sellers/Owners of the subject Property listed
  below have elected not to complete the Disclosure
  Statement as it relates to the Property being
  sold by them.
• Subject Property Address
  __________________________________________________
  __________________________________________________
  ____________________________________________
• Sellers/Owners Names _____________________
  __________________________________________________
  __________________________________________________
  _______________________
• ACKNOWLEDGEMENT OF BUYERS
• Buyers, by signing below, acknowledge that they
  have been informed by Weichert Realtors of the
  purpose of the Disclosure Statement, the
  potential risks of purchasing the subject
  Property without such a completed Disclosure
  Statement executed by the Sellers/Owners and have
  been provided with a blank copy of the form of
  Disclosure Statement. Buyers agree to hold
  Weichert, Realtors and its agents harmless in the
  event they suffer any damages as the result of
  something that could have been identified in the
  Disclosure Statement.

The sellers names and property address
Buyers must sign and date the form, accepting the
potential risks involved with making an offer on
a property that does not have a completed
disclosure form.