46:8C-11. Rights of homeowners on offer for sale.
2. a. If a private residential leasehold community landowner offers private residential leasehold community land for sale, the landowner shall give notice of that act by certified mail, return receipt requested, to the department, the municipal clerk and the mayor or other chief executive officer of the municipality in which the private residential leasehold community is located, the persons and entities on the list published and maintained by the department pursuant to section 2 of P.L.2025, c.362 (C.46:8C-12.1), and each resident homeowner in the private residential leasehold community. In addition, the landowner shall send the notice to each resident homeowner by first class mail with tracking and by delivery to each manufactured home on the property. The notice shall state the price, terms, and conditions of the offer and a contact person for further information. b. The affected resident homeowners, by and through a resident homeowner group, shall have the right to purchase such land, provided 51 percent of the resident homeowners in the private residential leasehold community have consented to the purchase, with multiple resident owners of a home having a single vote, and further provided that the resident homeowners meet the price, terms, and conditions of the private residential leasehold community landowner by executing a contract with the landowner within 120 days of being notified pursuant to subsection a. of this section, except as an extension of time may be mutually agreed upon by the landowner and the resident homeowner group. If a contract between the landowner and the resident homeowner group is not executed within that extension period, then, unless the landowner thereafter elects to offer the land at the same price or at a lower price than specified in the notice required by subsection a. of this section, the landowner shall have no further obligations pursuant to this subsection. The contract shall include a reasonable financing contingency of at least 90 days, and may, at the landowner’s option, include a refundable earnest money requirement of up to $50,000. A resident homeowner may indicate consent to the purchase by signing a petition or any other document that so indicates consent. c. If the landowner thereafter elects to offer the land at the same price or at a lower price than specified in the landowner’s notice pursuant to subsection a. of this section, the resident homeowners shall have an additional 30 days after receipt of that offer to meet the price, terms, and conditions of the landowner by executing a contract; provided, however, that if more than three months have elapsed since the receipt by the resident homeowners of the previous offer to sell the land pursuant to this subsection, the resident homeowners shall have 60 days after receipt of the subsequent offer to meet the price, terms, and conditions of the landowner by executing a contract. d. (1) As used in this subsection: “Confidential information” means all nonpublic information of any type or character provided by a disclosing party to a receiving party in the course of any discussions, negotiations, and due diligence related to a transaction pursuant to subsection b. of this section, regardless of whether the disclosing or receiving party is a landowner, resident homeowner group, or a resident homeowner residing in the private residential leasehold community. “Confidential information” shall not mean information: (a) disclosed for the purposes of obtaining legal advice and other professional and technical counsel to facilitate the discussions, negotiations, or due diligence related to a transaction pursuant to subsection b. of this section; (b) that becomes generally available to the public or any other person through no fault of the receiving party, after the exercise of reasonable precautions by the receiving party to protect such information, using the same reasonable precautions that the receiving party uses to prevent the unauthorized use, disclosure, dissemination, or publication of the receiving party’s own confidential information; (c) that is disclosed with the prior written consent of the disclosing party; (d) that was lawfully in the possession of the receiving party prior to receipt from the disclosing party; (e) that can be established by competent, public information lawfully within the possession of the receiving party; or (f) for which, notwithstanding paragraph (4) of this subsection to the contrary, the disclosure results in harmless error. “Disclosing party” means a landowner, or a resident homeowner group or resident homeowner residing in a private residential leasehold community, which provides or discloses confidential information to the receiving party. “Parties to the transaction” means a landowner, and a resident homeowner group and resident homeowner residing in a private residential leasehold community, which are involved, directly or indirectly, in the course of any discussions, negotiations, and due diligence related to a transaction pursuant to subsection b. of this section. “Receiving party” means a landowner, or a resident homeowner group or resident homeowner residing in a private residential leasehold community, which receives confidential information from the disclosing party. (2) A receiving party shall not disclose confidential information to any person or business entity other than the disclosing party. (3) A receiving party: (a) shall only use confidential information of the disclosing party for the internal evaluation of the feasibility and desirability of the transaction; (b) shall hold confidential information of the disclosing party in strict confidence and take reasonable precautions to protect such information, using the same reasonable precautions that the receiving party uses to prevent the unauthorized use, disclosure, dissemination, or publication of the receiving party’s own confidential information; and (c) may agree, following a validly executed contract with the disclosing party, to impose additional contractual obligations or provide exceptions to unlawful disclosure of confidential information pursuant to, and which would otherwise constitute a violation of, this subsection. (4) By entering into a contract for the sale of the private residential leasehold community pursuant to subsection b. of this section, the parties to the transaction agree that the disclosure, use, dissemination, or publishing of confidential information by a receiving party in violation this subsection shall constitute irreparable harm suffered by a disclosing party, and such a violation shall entitle the disclosing party to injunctive relief, in addition to all other rights or remedies available in law or in equity, including reasonable attorney’s fees and courts costs, in a court of competent jurisdiction where the private residential leasehold community is located. L.1991,c.483,s.2; amended 1995,c.365,s.2; 2025, c.362, s.3.