USA – NEW JERSEY Law and Practice Contributed by: David Freylikhman, Cory Mitchell Gray, David Jensen and Jody Saltzman, Greenberg Traurig LLP
common. The rights of a deceased joint tenant auto - matically transfer to the surviving joint tenants. Pursu - ant to N.J.S.A. 46:3-17, co-owners must use express language to create a joint tenancy. Tenancy by the Entirety A tenancy by the entirety is a form of joint property ownership available only to spouses. Transfer of real estate to a husband and wife creates a tenancy by the entirety unless the deed provides otherwise. See N.J.S.A. 3B:9-1. Real property is not typically held in this manner. Life Estate A life estate in New Jersey will convey an interest in real property granting the right to possess the proper - ty to a “life tenant” until the death of a named person. Upon death of the named person, the property auto - matically transfers to a designated remaindermen. Leasehold Estate In addition to the above, New Jersey also recognises non-freehold estates such as the leasehold estate, which involves possession but not ownership. 2.2 Laws Applicable to Transfer of Title The main statute governing transfer of title is Title 46 of the 2022 New Jersey Revised Statutes; N.J.S.A. 46. For any property that has multiple dwellings (including hotels and motels), the New Jersey Hotel and Multi - ple Dwelling Law (N.J.S.A. 55:13A-1 et seq) may also apply. Properties that have been used as “industrial facilities” as defined by the Industrial Site Recovery Act (ISRA) will also be subject to compliance with ISRA (N.J.S.A. 13:1K and New Jersey Administrative Code (N.J.A.C.) 7:26B). In addition, there are over 500 municipalities in New Jersey, virtually every one of which has its own ordinance with respect to transfers of property. ISRA ISRA is a unique New Jersey statute that requires that owners of certain facilities investigate and reme - diate property prior to or in connection with property transfers, business sales or when a business ceases operations. Whether or not a business is subject to ISRA is based on its North American Industry Classi - fication System (NAICS) classification, and the use or
presence of hazardous substances in its operations. If the property is ISRA-subject, appropriate provisions must be inserted in the purchase contract to ensure compliance and protection of the parties. The actions of the Licensed Site Remediation Professional (LSRP) are tightly regulated by the state to ensure compliance with the state’s laws by a non-state entity. ISRA is a complex and detailed statute, and its provisions can - not be adequately summarised in this format. “Green Cards” The Bureau of Housing Inspection administers the New Jersey Hotel and Multiple Dwelling Law, which requires that multifamily properties, hotels and motels maintain valid Green Cards that are issued after prop - erty is registered, inspections and re-inspections have been conducted, all violations are corrected and all fees are paid. Bulk Sales New Jersey has a bulk sales law that imposes on pur - chasers an obligation to notify the New Jersey Depart - ment of Treasury, Division of Taxation (the “Division”) of any transaction involving the transfer of business assets outside the ordinary course of business of the owners. The purpose is to identify and capture the taxes owed by the owner before sales proceeds are distributed from the closing of the transaction. Failure to comply with the bulk sales law in a timely manner could result in a bulk sales violation. Certificates of Occupancy As noted, there are over 500 municipalities in New Jersey, many of which require the issuance of a cer - tificate of occupancy (commonly referred to as a CO) upon a conveyance. The property owner must usually complete the application for inspection and issuance of the CO along with payment of a fee. 2.3 Effecting Lawful and Proper Transfer of Title In New Jersey, lawful and proper transfer of title to real estate is effectuated by execution, delivery and recordation of a proper deed with the county clerk for the county in which the subject property is located, along with the payment of the applicable taxes and fees in order to obtain the benefits of recording. The
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