A New Jersey seller deliberately concealed a known flooding problem in the basement by painting over water stains and not disclosing it on the Property Condition Disclosure Statement. After closing, the buyer discovered the flooding issue and spent $30,000 on repairs. The buyer filed a claim under the NJ Consumer Fraud Act. If the buyer prevails, what is the maximum amount the buyer could recover under that statute?
Correct Answer
D) $90,000 representing treble the actual damages, plus attorney's fees
The New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.) provides for treble damages — three times the actual damages — plus attorney's fees and costs for successful plaintiffs. If the buyer's actual damages are $30,000, the maximum recovery under the CFA is $90,000 (3 × $30,000) plus attorney's fees. This treble damages provision is a powerful deterrent against fraudulent and deceptive practices in real estate transactions and is a hallmark feature of the NJ CFA.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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