USA - NEW JERSEY Law and Practice Contributed by: Steven Fleissig, David Freylikhman, Cory Mitchell Gray and David Jensen, Greenberg Traurig LLP
occur with a tenancy in common. The rights of a deceased joint tenant automatically transfer to the surviving joint tenants. Pursuant to N.J.S.A. 46:3-17, co-owners must have express language to create a joint tenancy; accordingly, deeds should recite the following: “Grantor grants and conveys ownership of the property described below to Grantees, as joint tenants with right of survivorship and not as tenants in common, along with all of its rights and appurtenances.” Tenancy by the Entirety A tenancy by the entirety is a form of joint prop - erty ownership available only to spouses. Trans - fer of real estate to a husband and wife creates a tenancy by the entirety unless the deed provides otherwise. Features of tenancy by the entirety include a right of survivorship where a surviving spouse becomes full owner of the property upon the death of the other spouse. N.J.S.A. 3B:9-1. Most sophisticated or commercial property is not held in this manner. Life Estate A life estate in New Jersey will convey an inter - est in real property granting the right to possess the property to a “life tenant” until the death of a named person. Upon death of the named per - son, the property automatically transfers to a designated remaindermen. A deed in New Jer - sey may include the phrase “during the natural life of” to name the person whose death triggers the transfer to the remaindermen, and the phrase “the remainder over at death to” to identify such remaindermen. Leasehold Estate In addition to the above, New Jersey also rec - ognises non-freehold estates such as the lease - hold estate, which involves possession but not ownership. The term is also for a finite or pre - dictable period of time and can be determined
in advance. Variations of leasehold estates and lesser categories of ownership, such as an estate for years and/or an estate at sufferance, also exist in New Jersey. 2.2 Laws Applicable to Transfer of Title The main statute governing transfer of title is Title 46 of the 2022 New Jersey Revised Stat - utes; NJSA 46. For any property that has multiple dwellings (including hotels and motels), the New Jersey Hotel and Multiple 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 ISRA, will also be subject to compli - ance with the Industrial Site Recovery Act (ISRA) (N.J.S.A. 13:1K and N.J.A.C. 7:26B). In addition, there are over 500 municipalities in New Jersey, and each has its own ordinance with respect to transfers of property. In view of the above, inexperienced purchasers of real estate in New Jersey would be well advised to keep in mind the following: • ISRA compliance with respect to industrial establishments; • New Jersey bulk sales compliance; • “Green Cards” for the conveyance of multiple dwelling properties, • motels, and hotel properties; and • certificates of occupancy or other transfer certificates in certain municipalities. Industrial Site Recovery Act (ISRA) ISRA is a unique New Jersey statute that requires that owners of certain facilities investigate and remediate 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 Classification System (NAICS) classification, and the use or presence of hazardous substances in its operations. If
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