Governor Chris Christie recently signed into law A-2748, modifying the NJ Bulk Sale requirements thus exempting the sale of certain real estate located in New Jersey from the onerous bulk sale requirements. The law took effect on September 14, 2011, when signed by the Governor, and applies retroactively to sales, transfers and assignments on or after August, 1, 2007.  This means that any transactions taking place between August 1, 2007 and September 14, 2011 were in essence, never subject to bulk sales requirements.

The legislation exempts from the bulk sale requirements one and two-family residential dwelling unit(s) (including a unit in a condominium or a cooperative) and certain seasonal rental properties when the seller is an "individual" "estate" or "trust".  The exemption does not apply to properties when the seller is a business entity, including but not limited to a Corporation, Partnership or LLC. Nor does it apply to commercial properties or structures containing more than two units of dwelling space.

Previously under the bulk sale provisions, most purchasers and sellers of real estate in NJ had onerous reporting and NJ tax withholding requirements that applied when purchasing and selling NJ real estate. This new law exempts the effected sellers and purchasers from being unnecessarily burdened by the bulk sales notification requirements imposed by the New Jersey Division of Taxation. The previous requirements routinely 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.   

If you have questions regarding this new law and would like to discuss how it could potentially impact you, please feel free to contact me.