CAMDEN – A federal judge has nullified the sale of a Margate home and ordered the sellers to return the full $1.5 million sale price to the buyers.
U.S. District Court Judge Karen M. Williams rendered her decision Sept. 15 granting the plaintiff’s motion for summary judgement stating the sellers were fraudulent in selling the property without disclosing that the property underwent substantial improvements without obtaining building permits from the City of Margate. Those improvements also failed to abide by the 50% rule that spurs elevation or replacement of a shore house. The judge denied the plaintiff’s motion for breach of contract, however.
The buyers are Vincent and Therese Novelli, who are associated with Compass Realty, and the sellers are William and Judith Breslin, who listed the property with Berkshire Hathaway. The sale of 10 West Drive to the Novellis was finalized on June 8, 2022, after a previous deal to sell the property fell through.
According to Williams' decision, although she signed a seller’s affidavit, real estate agent Judith Breslin failed to disclose material defects in the property contained in a property inspection report obtained by the initial purchaser.
The 44-page property inspection report conducted by Rock Solid Home Inspection, LLC on Nov. 30, 2021 for the first buyer listed numerous defects including rotted joists that could affect structural integrity, deficient heating system, mold in the crawlspace, termite damage, and cracking exterior stucco walls that caused water to infiltrate into the home and estimated to cost $112,000 to repair. When the Breslins failed to reduce the sale price, the first set of buyers backed out of the deal.
The Breslins first purchased the four-bedroom, 2.5 bath Tudor styled Marven Gardens home in July 2019 for $575,000. According to the decision, Judith Breslin, who had bought and sold 26 homes over the years, did not get a home inspection but understood that the property needed to be upgraded. The couple set about renovating the home to the tune of about $400,000, installing a new kitchen and bathrooms, realigning walls and installing a new HVAC system, all without obtaining building permits.
Municipal land use law not only requires permitting by the municipality, but it also requires that if improvements total 50% or more of the assessed valuation of the home, the home must be elevated to higher FEMA standards or replaced in its entirety. Penalties for failing to comply with municipal land use law carry a fine of up $1,250 a day and imprisonment up to 90 days, the judge noted.
According to Williams, Breslin said she was aware of the 50% rule and that permits were required but failed to get them “because she was afraid that if she disclosed exactly what she had done, she would be found to have violated the 50% rule.”
According to the judge, under NJ case law, “deliberate concealment of a latent defective condition material to the transaction constitutes sufficient grounds to justify rescission of a contract to purchase realty.” She voided the contact stating it was “null and void” from the beginning and ordered the Breslins to return $1.5 million to the Novellis.
Williams also noted that “As a result of the Defendants’ misrepresentations, Margate City could seek to hold Plaintiffs liable for daily fines or compel compliance with modern building codes, which would effectively require demolition of the existing structure.”
Palma Shiles of the Margate Construction Office said she would be meeting with Construction Official Dino Cavelieri and Floodplain Administrator Roger McLarnon this week to discuss what course of action, if any, the city will take regarding the property.
“They will probably get a violation for doing work without a permit,” Shiles said. “We tell people all the time that doing work without permits could be unsafe because there were no inspections.”
Shiles said she hopes the story raises awareness that there are “serious consequences” that can result from failing to obtain permits, including creating a public safety hazard or setting oneself up for fines or a costly legal suit.
“What scares me is that when work is done without permits, the work is being done by someone who is unlicensed or not reputable,” she said.
Home improvement contractors are required to submit a copy of their state registration to the municipality before pulling a permit, she said.
In addition, the 50% rule requires some home improvements that are normally exempt from municipal permits, such as new roofing and siding, still require the property owner obtain a Floodplain Development Permit from the Construction Office.
Shiles said a Resale Certificate was issued to the Breslins when they first bought the house that showed a prior permit for a kitchen renovation done by the previous owners back in 2018 had been closed out.
“In my mind, the most important thing is that when you get construction permits for the HVAC and renovations, you get inspections, which ensures the home is safe,” Shiles said.
Copyright Access Network 2025
