USA – NEW JERSEY Law and Practice Contributed by: David Freylikhman, Cory Mitchell Gray, David Jensen and Jody Saltzman, Greenberg Traurig LLP
Greenberg Traurig LLP 500 Campus Drive Suite 400 Florham Park NJ 07932 USA Tel: +1 973 360 7900 Fax: +1 973 301 8410 Email: freylikhmand@gtlaw.com Web: www.gtlaw.com
1. General 1.1 Main Sources of Law
2. Sale and Purchase 2.1 Categories of Property Rights Fee Simple Absolute
Real estate law in New Jersey requires attention to a variety of substantive skills and practice areas, good personal habits, and a demonstration of good judg - ment and professionalism. In virtually every deal, there are tax issues, corporate issues, government issues, environmental issues, and labour and employment issues (among others), so the attorney must guide the client and understand the business issues within the framework of the legal issues. 1.2 Main Market Trends and Deals The same New Jersey market trends have been observed over the past several years: • data centres and industrial asset classes are stead - ily on the rise; • sale leaseback deals continue to hold strong, with interest rates remaining high; and • the New Jersey Economic Development Authority (NJEDA) has introduced numerous programmes that provide state tax credits to drive development opportunities in New Jersey – in particular, the NJ
Fee simple absolute is the greatest interest in real estate in New Jersey, granting the owner the full and exclusive right to use, possess, sell, hypothecate and even damage the property. The transfer of real prop - erty in New Jersey is deemed to be the transfer of an absolute fee simple estate, subject to the terms of the conveyance instrument. See the New Jersey Statues Annotated (N.J.S.A.) 46:3-13. New Jersey does rec - ognise variations on fee simple ownership, including fee simple defeasible estates and fee simple estate subject to a condition subsequent. Tenancy in Common In New Jersey, tenancy in common is the most fre - quent form of ownership structure where there are multiple parties that will co-own real estate. Except in the case of spouses or express language in the deed, real property transfers in New Jersey to two or more grantees will create a tenancy in common in equal percentages and undivided (interests are all shared). See N.J.S.A. 46:3-17. Since there is no right of survi - vorship, upon the death of a tenant in common, the deceased party’s interests transfer pursuant to intes - tate statutes or the provisions of a written agreement. Joint Tenancy With the Right of Survivorship Joint tenancy is a form of co-ownership that is viewed less favourably in New Jersey than tenancy in com - mon, and is primarily known for having a “right of survivorship” which does not occur with a tenancy in
Aspire Program and CPace. 1.3 Proposals for Reform
The most important reform proposal is New Jersey Assembly Concurrent Resolution 89, which proposes a temporary constitutional amendment allowing for a state constitutional convention to reform the system of property taxation, to propose statutory changes.
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