The amendments to the Consumer Fraud Act made in 1999 continue to provide REALTORS® with certain protection when they act in good faith in the communication of information that turns out to be false. The Act states 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. This applies when the real estate licensee:
Obtaining a property condition disclosure statement from the seller that meets these four conditions can prove “reasonable and diligent inquiry”:
Licensees are still obligated under the Real Estate Commission regulation, N.J.A.C. 11:5-6.4 (b), to make a reasonable effort to ascertain all material information concerning the physical condition of every property, which includes inquiries to the seller or seller’s agent about any physical conditions that may affect the property; and a visual inspection of the property to determine if there are any observable physical conditions affecting the property.