Condominium/Real Estate Law Blog
Bulk Sales Notification Requirements Amended by A-2748
Posted by Jeff Barnes on September 21, 2011
On September 14, 2011, Governor Chris Christie signed into law A-2748, the bulk sales legislation initiated and strongly supported by the New Jersey Association of Realtors (“NJAR”). This law, which took effect immediately upon being signed, exempts individuals, estates and trusts involved in purchasing one and two-family residential units, which includes condominium units, and certain seasonal rental properties from bulk sales notification requirements. Please note that entities, such as an LLC, 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. A-2748, which was approved unanimously by both houses of the state legislature, immediately protects one and two-family residential real estate transactions from being delayed by the bulk sales notification requirements imposed by the New Jersey Division of Taxation. Considering the above, the New Jersey Division of Taxation’s bulk sales notification form no longer needs to be submitted by those purchasing these types of residential properties in New Jersey. If a previous owner of a one or two-family home or seasonal rental property owed state taxes on revenue earned from the property (i.e. if the seller ever rented the property), the purchaser will not be considered liable for any taxes owed by the seller.
If you have any questions about the above information, please do not hesitate to contact me to discuss how it pertains to your unique situation.
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