Recent Blog Posts

    • Bulk Sale Notification in Real Estate Sales Selling a home which you recently rented out because of the difficult real estate market? Well, you may discover that at closing, the state of New Jersey may want to escrow part of your closing proceeds to cover any existing tax debt or estimated taxes on any gain from the sale.    Due to recent changes in the New Jersey Bulk Sale Law (N.J.S.A. 54:50-38), transfers of income producing real estate are likely to generate a notification by the buyer to the Division of Taxation of the transfer, thereby providing the State with the opportunity to inquire into possible tax debts of the transferor, and perhaps requiring a possible escrow of sale proceeds at closing.   Bulk Sale notification previously pertained to the sale of assets of a business which were not sold in the ordinary course of that business. Now, as a result of a change in the law, and a recent interpretation of the amended Bulk Sale notice law, the State of New Jersey is applying the Bulk Sale Law to transfers ....
    • Condos VS Co-Ops: What's the Difference? People commonly think of home ownership in the form of owning a single family house situated on its own parcel of land.  However, increasingly, condominiums, and to a lesser extent, co-operatives, are providing  alternative forms of home ownership.  What are these forms of ownership and what is the difference between them? In New Jersey, condominium ownership is no longer unusual.  It is a form of common ownership in which title to individual units vests in each unit’s owner.  In addition, each unit owner also owns a percentage interest in the common areas which are shared by the unit owners, e.g.,  the land, building exteriors and any facilities for the unit owners’ common use.  Descriptions of both the individual units as well as the common areas are set forth in a Master Deed which is recorded in the County Clerk’s Office in the county where the condominium is situated.  Thus, condo owners own their unit plus a percentage ....
    • Real Estate Tax Revaluation in the Princetons As residents of  Princeton Borough and Princeton Township are well aware, their municipalities  have undertaken a revaluation of the real estate within their boundaries for tax assessment purposes.   The last revaluation performed in Princeton Borough and Township was in 1996.  Recently, each municipality notified property owners by first class mail of their preliminary assessments.  The preliminary values were established by Appraisal Systems, Inc., an independent professional appraisal firm hired by the Princetons to perform their revaluations.  The date of the property revaluation is as of October 1, 2009.  These new values, once confirmed, will become a property’s new assessment, effective with the 2010 tax year.    The purpose of the revaluation is to cause the tax burden to be more fairly shared by the properties, based on new tax assessments resulting from current true values of properties.   The Mercer County Board of ....
    • Why Record a Deed? Our recording system, having its roots in England, is basically a system for determining priority of legal claims against real estate. Thus, when one acquires title to real estate, or mortgages property, those instruments affecting title are usually recorded in the county clerk’s office.  N.J.S.A. 46:21-1 entitled, “Recorded deeds or instruments as notice to subsequent judgment creditors, purchasers and mortgagees,”  makes clear the purpose of our recording statutes.  It states: Except as otherwise provided herein, whenever any deed or instrument of the nature or description set forth in section 46:16-1 of this title, which shall have been or shall be duly acknowledged or proved and certified, shall have been or shall be duly recorded or lodged for record with the county recording officer of the county in which the real estate or other property affected thereby is situated or located such record shall, from time to time, be notice to all subsequent ....
    • The Residential Real Estate Market Sees A Reduction in Both Foreclosures and New Construction As we all know, New Jersey continues to be plagued by both a troubled real estate market and economy.  Our real estate market remains awash in homes either in foreclosure, or having gone through a foreclosure and subsequent sheriff's sale.   It also remains awash in unsold new construction, and an essentially non-existent new construction pipeline.  October's figures show a "mixed bag" as they say.  First, construction of new homes in the New Jersey region fell 18.8%.  This included a nearly 10% decline in the construction of single family homes.   Second, and on the other hand, for the first time in 2009, the number of residential foreclosure filings was lower than it was over the same period in October 2008.  Lenders started 4,991 foreclosures against New Jersey homeowners in October 2009, down from 5,262 during October 2008.  The October 2009 figures were also less than a height of 6,138 filings, from June 2009.   ....
    • Extended and Expanded Homebuyer Tax Credit The popular federal tax credit of up to $8,000 provided to first-time home buyers who purchase a home in 2009 due to expire November 30th has been extended until April 30, 2010.  In addition, a new tax credit up to $6,500 will be available to certain "step-up" (or downsizing) homebuyers who are current homeowners who have resided in their homes for at least five years.   The original 2009 tax credit was part of the American Recovery and Reinvestment Act of 2009.  On November 6, 2009, President Obama signed the "Worker, Homeownership and Business Assistance Act of 2009" into law.  The first-time homebuyer tax credit is equal to 10% of the purchase price of a home, up to a maximum credit of $8,000.  It is available to certain first-time home buyers who purchase a main residence on or after January 1 and before December 1, 2009.   This tax credit has now been extended to April 30, 2010.  Closing must occur by April 30th, or a ....
    • Title to Cemetery Plots - Not So Scary! Goblins and ghosts.  Eerie graveyard scenes.  With Halloween coming, cemeteries always take on some added  interest. New Jersey cemeteries are governed by the "New Jersey Cemetery Act, 2003."  N.J.S.A. 45:27-1 et seq.  Under the Act, a cemetery is defined as "any land or place used or dedicated for use for burial of human remains or disposition of cremated human remains...."  N.J.S.A. 45:27-2.   General supervision and regulation of all cemetery companies and their property, equipment and facilities is exercised by a 10 member New Jersey Cemetery Board.  N.J.S.A. 45:27-1 While many historical cemeteries exist in New Jersey, any cemetery established after December 1, 1971 must be owned and operated only by a governmental entity, religious organization or a cemetery company organized in accordance with the New Jersey Cemetery Act.  N.J.S.A. 45:27-6.  Those cemetery companies organized after December 1, 1971 must be ....
    • Real Estate Sales - Need for Signed Written Agreements When buying and selling real estate, in nearly every transaction, a written contract is prepared for all parties involved to sign.  One reason for this is obvious - to make certain that all parties can clearly see, and are in agreement with, all the terms and conditions of the transaction.  This avoids any misunderstandings as to such important terms as the sales price, the description of the property being sold, the closing date, and any contingencies.  However, another important reason to have a signed written agreement is to comply with New Jersey’s statutory requirements for enforcement of such agreements for the transfer of an interest in real estate.   New Jersey has enacted a law setting forth certain requirements essential for the enforceability of agreements to transfer an interest in real estate.  Those requirements have been codified in N.J.S.A. 25:1-13, the N.J. Statute of Frauds, which states that an agreement to transfer an interest in real ....
    • How Firm are Real Estate Contract Closing Dates? Most contracts for the sale of real estate designate a date for the closing.  While buyers and sellers generally prepare to close on that date, it is not always possible.  Delays are not unusual and frequently reasonable under the circumstances.  So how definitive is the closing date in the contract? Most contracts for the sale of real estate in the central and northern areas of New Jersey refer to the closing date as an “on or about” or “on or before” date.  This means that while the closing date has been agreed upon, neither party can legally require the other to actually close on that date.  The reason for providing flexibility in the closing date is due to the sometimes uncertain nature of the parties’ schedules, availability of buyers’ funds, lender delays, mover’s schedules, etc., etc., etc. In order to avoid any unreasonable delay in closing, a specific written notice can be provided to the uncooperative party to ....
    • Tax Credit for First Time Home Buyers Would you like to have a federal tax credit of $8,000 simply because you purchased a home this year?  As part of the American Recovery and Reinvestment Act of 2009, a tax credit equal to 10% of the purchase price of a home, up to a maximum of $8,000, is available to certain first-time home buyers who purchase a main residence on or after January 1 and before December 1, 2009.   First-time home buyers who purchased their main home in 2008 are entitled to a credit of up to $7500. This article is limited to a discussion of the credit available for 2009 purchases.   Who is entitled to such a credit?  First-time home buyers are if  purchasing a main home, i.e., principal residence, whether it is a house - new or resale - mobile home, condominium, cooperative apartment, etc.  The purchase must occur on or after January 1, 2009 and before December 1, 2009.  The purchase date is the closing date, when title transfers to the buyer.  For someone who ....
    • How Restrictive Covenants May Affect Your Property Most transfers of title to real estate are made subject to "easement and restrictions of record, if any." Easements may be varied, but usually involve access rights for utilities, or perhaps a driveway easement to share a driveway with a neighbor. But what about those restrictions? What are they?   Most restrictions can be found as covenants contained in a deed, in a declaration of restrictions or on a legend on a filed map. Restrictions generally limit or otherwise affect how a property owner can use their lands. Perhaps they involve the distance a structure must be set back from a property line or other structure (unrelated to zoning setback requirements). Or, maybe they involve how a structure may be used (unrelated to land use ordinances). Or, they might even limit who can use the property. Some restrictions are referred to as nuisance restrictions because they prohibit the use of the property conveyed for any noxious or offensive purpose. Restrictions against public ....
    • Stark & Stark Shareholder Comments on Senators' Amendments to Eminent Domain Legislation Timothy P. Duggan, Shareholder of Stark & Stark’s Condemnation group, was quoted in the June 16, 2009 NJ Biz article, Senators announce amendments to eminent domain legislation. The article discusses the recent amendments to State Senate majority leader Steve Sweeney (D-West Deptford) and State Senator Ronald Rice’s (D-Newark) previously proposed eminent domain legislation, which would allow  redevelopment in the state while still providing protection and fair compensation to property owners if eminent domain is required. Mr. Duggan states that you need a good compromise by making certain that redevelopment is allowed to go forward in some areas, such as inner cities, while curbing abuses in areas that are truly not blighted. Mr. Duggan also comments on effects the recent economy has had on several redevelopment plans in the area. You can read the full article online here. ....
    • Disclosure of Property Conditions When Selling a Home Selling a home and wondering what physical conditions at the premises need to be disclosed to a potential new buyer?  Everyone wants to present a positive picture of their home, especially during a slow real estate market.  But it is usually in a seller’s best interest to thoroughly disclose any defects which are not readily observable. Most residential resale properties are sold in “as is” condition.  This is usually intended to mean that the buyers have a right to make whatever inspections they seek and the sellers are not responsible after closing for any conditions later discovered by the buyers. However, selling a home “as is” does not mean that a seller can deliberately misrepresent the condition of the property.  Sellers may be liable for common law fraud if they make a material misrepresentation of any present or past fact which they know or believe to be false, they intend the buyer to rely on, the buyer does rely on it and ....
    • A Brief History of Land Title in New Jersey Ever wonder who first held official title to what is now known as New Jersey? Although Native Americans were living here at the time, the British Crown originally laid claim to the lands in this state in 1663.  In June 1664, King Charles II made a land grant to his brother, James, Duke of York, which included the lands in New Jersey.  Three months later, the Duke of York conveyed his interest in these lands to his two friends and supporters, John, Lord Berkeley and Sir George Carteret.  These gentlemen became the original proprietors of New Jersey.  Berkeley later sold his share of the lands to others.  In 1676, the successors to Berkeley’s interests and Carteret signed an Agreement dividing the colony into East and West Jersey.  The portion originally owned by Carteret became East Jersey and the portion originally owned by Berkeley became West Jersey.  These two provinces each came to be ruled by a Board of Proprietors who represented owners of ....
    • Title Dispute? Consider A Quiet Title Action To resolve certain disputes which can arise over title to real estate, the New Jersey legislature has provided a process by which a party in possession of the real estate can protect or clear up the title to his property.  If another person or entity raises a claim, or disputes the title to the property in some way, then the party in possession of the property may wish to commence a lawsuit to "quiet title" and thus resolve any outstanding issues relating to the title.  While quiet title actions have historical roots, the remedy available today  in New Jersey is a statutory one pursuant to N.J.S.A. 2A:62-1 et seq..  It is a remedy which permits a person who is in peaceable possession of lands in New Jersey to settle disputes over the title to his land. A person in "peaceable possession" may, when title to his lands or any part of them is denied or disputed, or when a lien or encumbrance is asserted against his lands, use this process  ....
    • Governor Corzine Signs Residential Development Solar Energy Systems Act Into Law On March 31, 2009, Governor Jon Corzine signed into law new legislation known as the Residential Development Solar Energy Systems Act. (P.L. 2009, c.33) codified at N.J.S.A. 52:27D-141.1, et seq.. The Act requires developers of residential developments containing 25 or more single-family dwelling units to disclose in advertising and offer to install solar energy systems. The act requires the Department of Community Affairs (DCA) in consultation with the Board of Public Utilities to adopt regulations respecting the technical sufficiency of solar energy systems to be installed pursuant the act and prescribes certain minimum standards.  For example, a solar energy system installed under the act shall have components that are new and shall have a manufacturer’s warranty of not less than 10 years. Although the Residential Development Solar Energy Systems Act became effective immediately, in actuality, it shall apply only to dwelling units that have received a construction permit ....
    • Help Available for Delinquent Loans Loss of a job, unexpected medical bills, divorce, or other difficult circumstances can cause a homeowner to fall behind in his/her mortgage payments.  Many lending institutions are offering assistance and payment alternatives to delinquent homeowners. Falling behind but not in default yet?  Look first for other available sources of funds.  This may include funds withdrawn from a retirement account or cash value taken from a life insurance policy.  Check with a tax adviser however, about the tax consequences of a retirement withdrawal and whether a hardship exception applies.  The Office of Housing and Urban Development (HUD) also has interest-free loans available to qualified homeowners to pay past due interest and escrows. Try to work out a repayment plan with the lending institution.  Especially in these difficult economic times, lenders are open to working out a plan to pay any arrearage.  If the borrower can provide an explanation as to why the ....
    • Usefulness of Surveys in Real Estate Purchases In addition to physically visiting a property before a purchase, it is a good idea, as well as a requirement of most lending institutions, to obtain a survey of the property.  Surveys are made by licensed surveyors who are subject to certain regulations imposed by the State of New Jersey.  A survey will locate any structures and other above ground improvements on the premises, including fences, identify easements the property is subject to and provide the purchaser with the property's dimensions. There are numerous reasons for obtaining a survey prior to closing.  One is to determine if there are any encroachments onto the property in question by any structures from a neighboring property, e.g., fences, sheds, driveways, etc. Or, on the flip side, whether there are any encroachments by structures on the property in question onto neighboring properties.  Depending on the type and/or severity of an encroachment, a prospective buyer may seek to have the encroachment ....
    • The Real Estate Tax Revaluation Process Princeton Borough and Princeton Township are about to undergo a revaluation of the real estate within their municipalities.  Such a revaluation is a mass appraisal of all real property within their borders.  It is performed by an independent professional appraisal or revaluation firm.   The properties will be revalued at their "current" value.  In the Princetons, this will be as of October 1, 2009 and those values, once confirmed, will become effective in 2010.  By doing this, the municipalities seek to cause the tax burden to be fairly shared by the properties, based on new tax assessments resulting from the current true values.   Frequently, a municipality makes a determination to undergo a revaluation of the real estate within its borders when the individual assessment - sales ratios vary widely within the municipality.  This ratio is determined by dividing the assessed value of a property by an accurate sales price, with the result ....
    • Stark & Stark Shareholder Quoted in Star Ledger Article Real Estate Tax Appeal Shareholder, Timothy P. Duggan, was quoted in the November 22, 2008 Star Ledger and Trenton Times article Reducing property taxes is possible, but not likely. The article discusses the recent rise in the number of homeowners filing for property tax appeals in New Jersey in the wake of the declining housing market and recent economic downturn. Mr. Duggan advises homeowners to take the necessary preliminary steps in understanding the tax appeal process in order to increase the chances that their appeal is heard and granted.   You can read the full article here. (PDF) ....
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