Jersey Shore Home Sale Voided After Unpermitted Renovations Lead to $1.5 Million Refund
A federal judge nullified the $1.5 million sale of a Margate City property because the sellers concealed considerable improvements done without licenses. This verdict emphasizes the need of transparency and local construction rules in real estate transactions.
The lawsuit concerns a Tudor-style home in Margate’s Marven Gardens neighborhood. Vincent and Therese Novelli bought the four-bedroom home in May 2022 using seller disclosures. After the sale, they discovered that William and Judith Breslin had renovated the home for $400,000, including a new HVAC system, kitchen, bathrooms, and roof, without licenses.
These illegal additions violated Margate’s “Fifty-Percent Rule,” which requires house improvements over 50% of assessed value to comply with current construction rules. The rule ensures that renovated homes meet modern safety and structural standards, especially in flood-prone New Jersey.
Former licensed realtor Judith Breslin knew about the rule and avoided requesting licenses to evade its requirements, according to U.S. District Judge Karen M. Williams. Breslin acknowledged to knowing the residence broke the guideline but fraudulently claimed ignorance in the seller’s declaration.
The court annulled the sale and ordered the Novellis to receive the full purchase price because the Breslins engaged in fraudulent inducement. The decision also noted that unpermitted modifications could result in penalties or demolition orders since they violated construction codes.
The court also highlighted that the Breslins omitted to disclose severe structural and moisture issues found in inspection reports from a previous buyer who had backed out. Reports of rotted floor joists, termite damage, mold, and stucco flaws complicated the property’s situation.
Buyers and sellers are reminded of the necessity of full disclosure and local building rules by this verdict. It stresses that hiding property faults and unpermitted repairs can have substantial legal and financial ramifications.
The case also emphasizes the importance of rigorous inspections and due diligence before buying a home. Seller disclosures without independent verification can be costly and dangerous.
Finally, the voiding of this $1.5 million home transaction highlights the legal and financial hazards of unpermitted repairs and property problem concealment. It reminds real estate parties to promote openness, follow local construction codes, and permit and disclose all renovations.
Sources
U.S. District Court ruling, September 15, 2024
Margate City building regulations
Inspection reports from previous buyer
