This bill establishes specific requirements for short-term resellers of single-family homes, defined as homeowners who purchase, renovate, and resell a home within one year of receiving a certificate of occupancy. Key provisions include the requirement for resellers to retain in escrow the greater of five percent of the sale price or $10,000 for four months post-sale. These funds are intended to reimburse buyers for damages related to renovations that do not comply with the State Uniform Construction Code. Additionally, short-term resellers must complete a property condition disclosure statement to inform potential buyers about the home's condition and attest that they occupied the home as their primary residence during any renovation work.

The bill also stipulates that including deceptive or misleading information in the disclosure statement is considered an unlawful practice. If a short-term reseller falsely attests to the certification in lieu of oath regarding the work performed, they will face penalties as outlined in existing law. Furthermore, the Department of Community Affairs is tasked with developing a public education program to inform residents about these new provisions. The act is set to take effect on the first day of the seventh month following its enactment and will apply to contracts of sale agreed upon after that date.