A buyer in Trenton, New Jersey discovered after closing that the seller had knowingly concealed a severe mold problem that was not disclosed on the Property Condition Disclosure Statement. The buyer suffered $40,000 in remediation costs. Under which New Jersey statute could the buyer potentially recover treble damages and attorney's fees in addition to actual damages?
Correct Answer
D) New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1
The New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.) prohibits knowing concealment of material facts in connection with the sale of real estate and provides for treble damages (three times actual damages) plus attorney's fees as remedies. The seller's deliberate concealment of a known mold defect falls squarely within the CFA's prohibition on unconscionable commercial practices and knowing concealment. This makes the CFA the most powerful remedy available to the buyer in this scenario.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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