The New Jersey Rent-to-Own Rights Protection Act aims to safeguard tenant-buyers engaged in residential rent-to-own agreements by establishing clear standards and protections. The bill mandates that all rent-to-own agreements be documented in writing and include essential terms such as the total purchase price, lease duration, option fee details, and responsibilities for property maintenance and taxes. It also grants tenant-buyers the right to an independent property inspection before signing the agreement and requires landlords to provide a property condition disclosure statement, a full accounting of payments, and notice of any existing liens. Importantly, tenant-buyers cannot be forced to forfeit payments unless they default on the agreement after receiving reasonable notice.

Additionally, the bill prohibits deceptive practices by landlords and ensures that tenant-buyers' rights are not waived or impaired by property sales or transfers. It requires that properties involved in rent-to-own agreements be insured and not in default on mortgage or tax obligations. Violations of the act will be treated as unlawful practices under the New Jersey Consumer Fraud Act, allowing tenant-buyers to seek damages and attorney fees. The Commissioner of Community Affairs is empowered to adopt regulations to implement the act, which will take effect four months after its enactment.