Renovations to Jersey Shore home without a permit just cost these sellers $1.5 million

A federal judge has voided the $1.5 million sale of a Margate City home after finding the sellers knowingly concealed renovations made without a permit.

In an opinion issued Sept. 15, the court ruled that the sellers fraudulently induced the buyers into purchasing the four-bedroom Tudor-style home in Margate’s historic Marven Gardens neighborhood.

In her ruling, U.S. District Judge Karen M. Williams ordered that the full purchase price be returned to the buyers.

The ruling stems from the sellers failure to disclose that they had spent roughly $400,000 on extensive renovations — including a new HVAC system, kitchen, bathrooms, and roof — without obtaining permits.

The sellers, William and Judith Breslin, potentially exposed the buyers, Vincent and Therese Novelli, to demolition orders or steep fines, the ruling said.

The upgrades triggered Margate’s “Fifty-Percent Rule,” a local building regulation that requires any home with improvements exceeding 50% of its assessed value to comply with modern construction codes.

Common in flood-prone New Jersey towns, the rule is designed to protect properties in vulnerable areas.

It requires substantially renovated homes to meet current safety and structural standards, as if they were newly built.

According to the court’s opinion, Judith Breslin, a former licensed realtor, admitted that she was aware of the rule and intentionally avoided seeking permits to prevent triggering its requirements.

Breslin also acknowledged that the home violated the rule but falsely stated in the seller’s disclosure that she was unaware of any code violations, the opinion said.

The judge noted that the violation could subject the Novellis to daily fines of $1,250 or force them to demolish the home to bring it up to code.

The court also found that the Breslins failed to disclose serious structural and moisture issues flagged in inspection reports from a previous buyer who backed out of the deal.

Those reports cited rotted floor joists, termite damage, mold, and stucco defects.

The Novellis purchased the home “as is” in May 2022, relying on the seller’s representations.

After discovering the violations and defects, they sued to rescind the sale.

Williams granted summary judgment in favor of the Novellis, voiding the contract and ordering full restitution of the purchase price.

However, she denied a claim for breach of contract, finding instead that the agreement was void from the start.

The Breslins were represented by the Law Office of Daniel J. Gallagher in Atlantic City, who declined to comment on the ruling.

The Novellis were represented by Philadelphia-based law firm, Braverman Kaskey. A request for comment was not immediately returned.

Colleen Murphy may be reached at cmurphy@njadvancemedia.com.