USA – NEW JERSEY Law and Practice Contributed by: David Freylikhman, Cory Mitchell Gray, David Jensen and Jody Saltzman, Greenberg Traurig LLP
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. 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 multi - ple 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. Prop - erties that have been used as “industrial facili - ties” as defined by the Industrial Site Recovery Act (ISRA) will also be subject to compliance with ISRA (N.J.S.A. 13:1K and 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 prop - erty. 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 the property is ISRA-subject, appropriate provi - sions must be inserted in the purchase contract to ensure compliance and protection of the par - ties. The actions of the Licensed Site Remedia - tion 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 cannot 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 multi-family proper - ties, hotels and motels maintain valid Green Cards that are issued after property is registered, inspections and re-inspections have been con - ducted, all violations are corrected and all fees are paid. Bulk Sales New Jersey has a bulk sales law that imposes on purchasers an obligation to notify the New Jer - sey Department 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 man - ner 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 certificate of occupancy upon a convey - ance, commonly referred to as “CO” . The prop - erty owner usually must complete the applica - tion 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, deliv - ery 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 deed must be
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