In September 2024, New Jersey took a significant step toward promoting fairness in the real estate market, enacting a law that explicitly prohibits appraisers from engaging in discrimination when determining the value of a property. This landmark legislation aims to address longstanding concerns about bias in property appraisals, requiring that all buyers and sellers are treated fairly regardless of their personal characteristics.
Under the revised Real Estate Appraisal Act, appraisers assessing a property’s value are now explicitly barred from considering a current or prospective property owner’s:
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Race
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Religion
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Sex
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Gender identity
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Sexual orientation
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Age
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Marital status
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Disability
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Familial status
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Immigration status
The law is meant to ensure that appraisals are based solely on objective factors, such as the property’s location, condition and market, rather than on any biases or assumptions about the people involved in the transaction.
Discrimination in real estate appraisals has been a persistent issue, with studies showing that properties owned by individuals from marginalized groups are often undervalued compared to similar properties owned by others. This not only affects the financial well-being of property owners but also perpetuates systemic inequities in housing and wealth accumulation.
By explicitly banning discriminatory practices, New Jersey’s revised law seeks to create a more equitable real estate market. It also sends a clear message that bias has no place in property appraisals, reinforcing the state’s commitment to fairness and inclusion. For property buyers and sellers in New Jersey, the revised law provides greater assurance that appraisals will be conducted fairly and without bias. If you believe an appraisal has been influenced by discriminatory factors, you may have legal recourse under the new law.
Frieri Law Group is here to help you navigate concerns about property appraisals or any other real estate matters. We represent clients in residential and commercial real estate transactions. Our office is in Cranford and we serve clients in Union, Morris and Somerset counties and across New Jersey. To make an appointment regarding your specific legal needs, please call 908-883-3390 or contact us online.