In New Jersey, there was a flood of foreclosure filings after the foreclosure moratorium was lifted by Governor Christie in September of 2011. Some of these foreclosure properties were listed for sale by banks, private sellers and agents, and many contained defects and potential dangerous conditions. As a result, questions have surfaced regarding realtors’ liability for injuries caused by dangerous conditions on properties listed for sale.

A realtor’s obligation to exercise reasonable care with respect to a property listed for sale was first addressed by the New Jersey Supreme Court over 20 years ago in Hopkins v. Fox & Lazo Realtors, 132 N.J. 426 (1993). In Hopkins, the plaintiff tripped and fell on a camouflaged step during an open house. She sued the listing broker who hosted the open house, alleging it had a duty to warn her of any known risks inside the house. The court held the real estate broker had a duty to exercise reasonable care to protect the safety of  prospective home buyers and visitors touring the “open house.” But the duty is limited.