Establishes licensure requirement for wholesale transactions in real estate and certain rights of consumers in contracts for real property sold in wholesale transaction.

A4278

ASSEMBLY, No. 4278

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Assemblyman� DAN HUTCHISON

District 4 (Atlantic, Camden and Gloucester)

Assemblyman� CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

SYNOPSIS

���� Establishes licensure requirement for wholesale
transactions in real estate and certain rights of consumers in contracts for
real property sold in wholesale transaction.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning real estate contracts for wholesale
transactions and
supplementing chapter 15 of Title 45 of the Revised
Statutes
.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �Commission� means the New
Jersey Real Estate Commission.

���� �Licensee� means a real estate
broker, real estate salesperson, or real estate broker-salesperson licensed by
the New Jersey Real Estate Commission.

���� �Residential property� means
real property located within New Jersey that consists of no less than one and
not more than four residential dwelling units.

���� �Wholesale transaction� means
undertaking to promote the sale, exchange, or purchase of an equitable interest
or other interest in residential property with the intent to assign, sell, or
otherwise transfer the interest for a fee, commission, or other valuable
monetary consideration without having taken title as the owner of record of the
interest.

���� 2.��� An individual engaging
in or attempting to engage in a wholesale transaction shall be licensed as a
real estate broker, real estate salesperson, or a real estate
broker-salesperson, as defined pursuant to R.S.45:15-3.

���� 3.��� a.�
A consumer who is party to a wholesale transaction shall have the right to
cancel a sales agreement or sales contract that contains the information
required under subsection e. of this section until midnight of the 30th day
after the date when the consumer executed the agreement or contract, or until
conveyance, whichever occurs first.� A sales agreement or sales contract for a
wholesale transaction that does not contain the information required under
subsection e. of this section may be canceled at any time prior to conveyance.�
The right to cancel the sales agreement or sales contract shall not be
waivable.

���� b.��� Notice
of cancellation shall be given by certified return receipt mail or by any other
bona fide means of delivery, including electronic delivery or personal
delivery, provided that the consumer obtains a receipt.� A notice of
cancellation given by a bona fide means of delivery shall be effective on the
date postmarked, the date of electronic transmission or on the date of deposit
of the notice with any bona fide means of delivery.

���� c.���� Within
10 business days after the receipt of a notice of cancellation, all payments of
any kind made by the consumer shall be refunded to the consumer and an
acknowledgment that the sales agreement or sales contract is void shall be sent
by the broker or salesperson to the consumer.� In the event of a cancellation
under this section, any promotional prizes, gifts and premiums issued to the
consumer shall remain the property of the consumer.

���� d.��� A
consumer who exercises the right of cancellation shall not be liable for any
damages as a result of the exercise of the right.

���� e.���� A
sales agreement or sales contract for a wholesale transaction shall
prominently include the following information which shall be disclosed in
the manner and method that the commission shall establish by regulation:

���� (1)�� a
statement that the agreement or contract is for a wholesale transaction in
which the licensee intends to assign, sell or otherwise transfer the interest
for a fee, commission or other valuable monetary consideration without having
taken title as the owner of record of the interest;

���� (2)�� a
statement that the consumer has the right to obtain an appraisal of the
property from a real estate appraiser certified or licensed pursuant to
P.L.1991, c.68 (C.45:14F-1 et seq.); to consult with a licensee not affiliated
with the broker of the licensee; or to seek legal counsel before or after
entering into the agreement or contract;

���� (3)�� a
statement that the consumer has the right to cancel the agreement or contract
until midnight of the 30th day after the date when the consumer executed the
agreement or contract, or until conveyance, whichever occurs first, by
certified return receipt mail or by any other bona fide means of delivery,
including electronic delivery or personal delivery, provided that the consumer
obtains a receipt; and

���� (4)�� a
statement that within 10 business days after the receipt of a notice of
cancellation, all payments of any kind made by the consumer shall be refunded
to the consumer.

���� 4. This act shall take effect
on the first day of the fourth month next following the date of enactment and
shall be applicable to contracts for the sale of real property in a wholesale
transaction entered into on or after that date.

STATEMENT

���� This bill requires individuals
engaging in or attempting to engage in a wholesale transaction to be licensed
as a real estate broker, real estate salesperson, or a real estate
broker-salesperson.� �Wholesale transaction� is defined to mean undertaking to
promote the sale, exchange, or purchase of an equitable interest or other
interest in residential property with the intent to assign, sell, or otherwise
transfer the interest for a fee, commission, or other valuable monetary
consideration without having taken title as the owner of record of the
interest.� Under the bill, this applies to transactions involving no less than
one and no more than four residential properties.

���� Additionally, the bill
establishes rights for a consumer who enters into a contract to purchase a
residential property through a wholesale transaction.� This includes the right
to cancel a contract
until midnight of the 30th day
after the date when the consumer executed the agreement or contract, or until
conveyance of the property, whichever occurs first.� A consumer who exercises
the right to cancel will not be liable for any damages.� The New Jersey Real
Estate Commission is also tasked with promulgating regulations that address the
various items a sales contract or sales agreement in a wholesale transaction is
to include.