September 15, 2011 |
On September 14, 2011, Governor Chris Christie signed into law A-2748, the initiated and strongly supported by NJAR®. This law, which took effect immediately upon being signed, exempts individuals, estates and trusts involved in purchasing one- and two-family residential and certain seasonal rental properties from bulk sales notification requirements. Please note that LLC’s involved in real estate transactions pertaining to one- and two-family residential and seasonal rental properties are still subject to bulk sales requirements.
In addition, the law is retroactive to August 1, 2007, meaning that any transactions taking place between that date and September 14, 2011 were in essence, never subject to bulk sales requirements.
This new law, which was approved unanimously by both houses of the state Legislature, immediately protects one- and two-family residential real estate transactions from being unnecessarily delayed by the bulk sales notification requirements imposed by the New Jersey Division of Taxation. In many cases, the previous requirements led to unnecessary closing delays or sellers being asked to place potentially thousands of dollars in escrow until the Division of Taxation cleared a property sale to proceed. For frequently asked questions click here