A New Jersey licensee advertises a property for sale using language that omits a known material defect — a history of basement flooding — in order to generate more buyer interest. The buyer purchases the property relying on the advertisement and later discovers the flooding issue. Under which New Jersey statute does the buyer have the strongest additional remedy beyond a common law fraud claim, including the possibility of treble damages and attorney's fees?
Correct Answer
A) New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1 et seq.
The New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.) specifically provides for treble damages (three times the actual damages) and attorney's fees for victims of unconscionable commercial practices, deception, misrepresentation, and knowing concealment in connection with the sale or advertisement of real estate. This makes it the most powerful statutory remedy available to the buyer beyond a common law fraud claim.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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