Amendments to the Bulk Sale Law were signed into law by Governor Christie on Weds., September 14. Enacted as chapter 124 of the Public Laws of 2011, the amendments exempt certain transfers from the bulk sale notification requirements. While not a title insurance issue, it is important that closing attorneys be aware of this change.
Under the law as amended, the bulk sale notification requirements of N.J.S.A. 54:50-38 will not apply to “… the sale, transfer or assignment of a simple dwelling house if the seller, transferrer (sic) or assignor is an “individual”, “estate” or “trust” …” For purposes of this law, a “simple dwelling house” is defined as a one-family or two-family dwelling unit including cooperatives and condominium units.
The amended law also exempts the sale, transfer or assignment of a “seasonal rental unit”, again if the seller is an individual, estate or trust. A “seasonal rental unit” for purposes of this law is a timeshare estate (N.J.S.A. 45:15-16.51) or a dwelling unit rented for a term of not more than 125 consecutive days for residential purposes by a person having a permanent residence elsewhere
This exemption extends only to sellers who are individuals, estates or trusts (as those terms are used for purposes of the “New Jersey Gross Income Tax Act” – N.J.S.A. 54A:1-1 et seq.) and does not extend to sellers who are “business entities” which include but are not limited to corporations or partnerships.
The law takes effect immediately and applies retroactively to sales, transfers and assignments on or after August 1, 2007.
