New Jersey

Key Cases, Regulatory Changes & Land Use Developments Affecting Real Estate Professionals Welcome back to the Real Estate Law Newsletter. This issue keeps a tight New Jersey focus: a redlining consent order that won’t close out, a brand-new statewide ban on algorithmic rent pricing, a servicing lawsuit out of Essex County. Whether you’re advising lenders, landlords, or fellow practitioners, our Real Takeaways translate each into practical next steps. Quick Highlights Court Won’t Let Lakeland Bank Out Of $13M Redlining Order Yet August 2026 A New Jersey federal judge has declined to close out a $13 million redlining settlement between Lakeland Bank and the Department of Justice, ruling the bank hasn’t yet shown enough evidence of sustained compliance with the underlying consent order. The original case accused the bank of avoiding mortgage lending in majority-Black and Hispanic neighborhoods across the state.  Real Takeaways: New Jersey Bans Algorithmic Rent-Pricing Software Under FAIR Act July 2026 Gov. Mikie Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act, making New Jersey the fourth state to restrict software that pools nonpublic rent, occupancy, and lease data across landlords. The law takes effect July 1, 2027, and builds on an antitrust suit the state Attorney General filed against RealPage and ten of its largest landlords. Real Takeaways: Newrez Servicing Arm Shellpoint Sued In New Jersey Over RESPA Violations July 2026 An Essex County homeowner has sued Newrez, doing business as Shellpoint Mortgage Servicing, in New Jersey state court, alleging the servicer delayed loss-mitigation decisions, gave inconsistent reinstatement figures, and continued foreclosure activity while her requests sat unresolved, claims she says violate RESPA, Regulation X, and the New Jersey Consumer Fraud Act. Real Takeaways: Social Spotlight Deed transfers can trigger taxes, mortgage issues, and costly mistakes. Protect your investment by handling it correctly from the start.  Check the Post. Your deed affects ownership, inheritance, property value, trust and LLC choices. Small mistakes can create major legal and financial problems later. Check the Post. Blog Essentials Learn how transferring New Jersey property with an open mortgage affects lender rights, borrower liability, due-on-sale clauses, deed requirements, and potential Realty Transfer Fee obligations. Learn more. Discover five essential considerations when buying a New Jersey REO home, including strict as-is terms, buyer certificate responsibilities, limited negotiations, deadlines, and appraisal risks. Learn more. Stay ahead with our free newsletter: The Real Estate Law Newsletter – your source for real estate law news. Essential updates and insights direct to you. Impress clients and colleagues with trending news. Sharpen expertise. Stay legally compliant. Access free legal forms. Don’t miss out – join today!

Key Cases, Regulatory Changes & Land Use Developments Affecting Real Estate Professionals This month’s Real Estate Law Newsletter highlights three important developments affecting New Jersey’s real estate industry: a major Supreme Court ruling on eminent domain, a delay of the state’s new flood and land-use regulations, and a significant federal change in lending guidance. Whether you’re a realtor, investor, landlord, mortgage professional, or property owner, our Real Takeaways explain what these developments could mean for your transactions, projects, financing, and compliance. Quick Highlights NJ Supreme Court Expands Clarity on Municipal Eminent Domain August 2026 The New Jersey Supreme Court ruled in Borough of Seaside Park v. Shree Jyoti LLC that municipalities do not have to identify a specific public purpose in an ordinance authorizing condemnation. The 6-1 decision upheld Seaside Park’s use of eminent domain to acquire the Desert Palm Inn for planned parking and electric vehicle charging facilities. However, the Court encouraged municipalities to disclose the intended use early to promote transparency. For New Jersey property owners and real estate professionals, the ruling gives municipalities greater flexibility in eminent domain proceedings. An ordinance is not automatically defective because it omits the planned public use, but owners may still challenge whether the taking serves a legitimate public purpose. Property owners should also respond promptly to condemnation notices and proceedings to preserve their rights.  Real Takeaways: New Jersey Delays Major Flood-Elevation Development Rules August 2026 New Jersey officials have delayed key provisions of the Resilient Environments and Landscapes (REAL) rule, giving qualifying development projects an additional year before facing the new requirements. The rule would expand flood-risk areas and require higher elevations for certain development and redevelopment projects. The extension allows the DEP to review potential amendments following concerns about housing affordability, permitting costs, and economic development. For New Jersey real estate professionals and property owners, the delay provides more time to assess projects that could face increased costs or development restrictions. Developers and investors should determine whether projects qualify under the extended legacy provisions and closely monitor the DEP’s review. Future changes could significantly affect project feasibility, financing, property values, and redevelopment opportunities. Real Takeaways: Federal Regulators Rescind Special Purpose Credit Program Guidance August 2026 Federal housing and financial regulators have rescinded the 2022 guidance on Special Purpose Credit Programs (SPCPs), which encouraged lenders to expand credit access for historically disadvantaged groups. Regulators said lenders should no longer rely on guidance allowing certain programs based on protected characteristics, citing conflicts with ECOA, Regulation B, and the Fair Housing Act. The change is effective immediately. Mortgage lenders and real estate professionals should review existing SPCPs, underwriting policies, marketing, and eligibility requirements for compliance with current federal law. Changes to these programs could affect financing opportunities for homebuyers and investors, making it important to monitor how lenders modify or discontinue specialized credit programs. Real Takeaways: Social Spotlight The Risk of Loss Clause determines who bears responsibility for property damage between contract signing and closing, an important protection for real estate transactions. Check the Post. … Read more