45:15-16.97 Liability, brokerage firm, principal, agent, transaction broker.
227 words·~1 min read·
/nj/title-45/chapter-15/45-15-16-97·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
12. a. A principal shall not be liable for an act, error, or omission by an agent or transaction broker of the principal arising out of their relationship:
(1)unless the principal participated in or authorized the act, error, or omission.
(2)except to the extent that the principal benefited from the act, error, or omission, in which case the principal's liability shall be limited to the monetary amount of the benefit unless some form of punitive damages are awarded.
b. A brokerage firm shall not be liable for information that is to be disclosed by a seller in a property condition disclosure statement that is provided for in section 1 of P.L.1999, c.76 (C.56:8-19.1) or otherwise by law or that the brokerage firm requested the seller to provide and was not provided to the brokerage firm, provided a real estate broker, real estate broker-salesperson, or real estate salesperson acting on behalf of the brokerage firm made reasonable efforts to ascertain all material information concerning the physical condition, including, but not limited to, making inquiries to the seller about any physical conditions that may affect the property and performing a visual inspection of the property to determine if there are any readily observable physical conditions affecting the property, and made disclosure of such information to appropriate parties to a transaction as required by law.
L.2024, c.32, s.12.