(That’s a mouthful.)

Certain types of new home construction are regulated by the State of New Jersey under a statute entitled the Planned Real Estate Development Full Disclosure Act. The developer of a large project is typically obligated to prepare and file an application for registration with the NJ Department of Community Affairs. That will include a master deed or declaration of covenants. It also involves the payment of review fees and a substantial timeline in which the application is reviewed in consultation with the developer’s attorney and then revised in order to obtain approval. I have registered many developments under the Act all over the State. 

The purpose of the Act is to protect new home buyers from unscrupulous practices. After all, for most people, the purchase of a home is their single largest financial transaction in their lives.

There are exemptions from the Act. For example, a developer of a small project can apply to the State for an exemption by submitting a small amount of documentation and paying a small fee. Exemptions are quickly granted if the application and supporting information is correctly submitted. The developer entity must be registered with the State as a new home builder as a precondition of applying for the exemption.

Developers can be fined for selling or offering certain types of new construction for sale without complying with the Act. Once the exemption application is filed with the State, developers may offer the units for sale so long as certain information, such as the master deed and the management contract, are kept at the sales office for review by prospective purchasers. Also, a purchaser must sign a form of an affidavit confirming among other things that s/he is aware that the information at the sales office is available for review.

I am available for your land development questions. Give us a call today.


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Charles D. Whelan III has been committed to excellence for over 30 years. With offices located centrally in New Jersey, he is able to provide businesses and individuals with excellent legal services.

Watchung Office

475 Watchung Ave, Ste 8, Watchung NJ 07069

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