u/noticethinkingdoggos Thanks for your detailed response. Really appreciate it.

Regarding owner-occupied properties, I just re-read the lease, it says

"6. Security Deposit. The Tenants have deposited two thousand two hundred fifty dollars ($2,250.00) with the Landlord as security that the Tenants will comply with all the terms of this Lease. If the Tenants comply with the terms of this Lease, the Landlord will return this deposit within thirty (30) days of the Termination Date, including any extension, less any amounts used to pay for damages resulting from Tenants’ occupancy, if any. The Landlord may use as much of the deposit as necessary to pay for damages resulting from the Tenants’ occupancy at any time, and demand that Tenants replace the amount of the security deposit used by Landlord. The Security Deposit is not to be used by the Tenants for the payment of Rent without the Landlord’s written consent. Tenants hereby specifically waive any right or protection they may have with respect to the Security Deposit pursuant to any executive order, law, rule, regulation or otherwise which is contrary to or in conflict with the provisions of this Lease. If the Landlord sells the property, the Landlord shall transfer the deposit to the new owners for the Tenants’ benefit and notify the Tenants. The Landlord will then be released of all liability to return the security deposit. The Landlord will fully comply with the Rent Security Law (N.J.S.A. 48:6-19 et seq.)."

I don't understand what "Tenants hereby specifically waive any right or protection they may have with respect to the Security Deposit pursuant to any executive order, law, rule, regulation or otherwise which is contrary to or in conflict with the provisions of this Lease." means. Can you please explain if I just waived my right to sue?

Also, it says " The Landlord will fully comply with the Rent Security Law (N.J.S.A. 48:6-19 et seq.)." I am not sure what "et seq" means here.

If the security deposit law does not apply for owner-occupied, does it mean the landlord is not required to return the deposit within 30 days or does it mean I can sue but would only get back 1x instead of 2x back?

"As far as failing to itemize within 30 days - this is irrelevant, there is no practical penalty under the law." So what is the point of the law if there is no penalty?