State Codes and Statutes

Statutes > New-jersey > Title-45 > Section-45-22a > 45-22a-37

45:22A-37.  Untruth, omission or misleading statement by developer; liability;  persons liable;  invalidity of agreement by purchaser to waive compliance with act    a.  Any developer disposing of real property subject to this act, who shall  violate any of the provisions of section 6 hereof, or who in disposing of such  property makes an untrue statement of material fact or omits a material fact  from any application for registration, or amendment thereto, or from any public  offering statement, or who makes a misleading statement with regard to such  disposition, shall be liable to the purchaser for double damages suffered, and  court costs expended, including reasonable attorney's fees, unless in the case  of an untruth, omission, or misleading statement such developer sustains the  burden of proving that the purchaser knew of the untruth, omission or  misleading statement, or that he did not rely on such information, or that the  developer did not know and in the exercise of reasonable care could not have  known of the untruth, omission, or misleading statement.

    b.  The court may, in addition to remedies provided herein, frame such other  relief as may be appropriate under the circumstances.  If the purchaser shall  fail in establishing a cause of action, and the court further determines that  the action was wholly without merit, the court may award attorney's fees to the  developer.

    c.  Every person who directly or indirectly controls a development or developer liable under subsection a., every general partner, officer, or director of a developer, and every person occupying a similar status or performing a similar function, shall also be liable jointly and severally with and to the same extent as such developer, unless the person otherwise liable sustains the burden of proof that he did not know and in the exercise of reasonable care could not have known of the existence of the facts by reason of  which the liability is alleged to exist.  There is a right to contribution as  in cases of contract among persons so liable.

    d.  A person may not recover under this section in actions commenced more than 6 years after his first payment of money to the developer in the contested  transaction.

    e.  Any stipulation or provision purporting to bind any purchaser acquiring  a parcel, lot, unit, or interest, in any development subject to the provisions  of this act, or any rule, regulation, or order promulgated thereunder, to a  waiver of compliance with said provisions, shall be void.

     L.1977, c. 419, s. 17.