NJ Underwriting Summary

Search/Exam

• Minimum Search Requirements -- No act; customary 60 years back to a deed to a bona fide purchaser. NJ has a 60 year statutory adverse possession period for wild and unimproved lands (20 and 30 year periods for other lands).
• Plant or other search restrictions -- No
• Additional Requirements for REO Searches -- N/A
• Foreclosure Checklist -- N/A
• Special Searches Required (Code, HOA, Utilities)? -- Yes – Upper Court, Tax, Municipal Assessments, Chancery Abstracts, Water Charges, Tidelands
• Survey Requirements -- The general rule for us is if we’re asked to remove the general survey exception from an owner’s policy, we require a new survey certified to WFG. There are limited times where we have accepted an old survey on residential properties with an affidavit of no change, but usually that requires the agent be familiar with the property to confirm there has been no improvements or changes to the land. Those are few and far between, however.

UPL

You do not need to be an attorney to conduct a search, perform an examination of title or conduct settlement functions. Title agents are however prohibited from the unauthorized practice of law and non attorneys may not prepare deeds. N.J.S.A. 17:46B-13. Prohibition against the practice of law: No title insurance company and no title insurance agent shall engage in the practice of law or render legal services, legal advice or legal opinions.

Vesting

New Jersey recognizes tenancy by the entireties and it happens automatically when both spouses take title, unless a contrary intention is expressed. N.J.S.A. 46:3-17.2 and N.J.S.A. 46:3-17.3

Witness Requirements

Witnesses are not required although it is customary for the party taking the acknowledgment to act as a witness as well.

Property Tax

Taxes are due quarterly on the following dates:

• First Quarter: February 1.
• Second Quarter: May 1.
• Third Quarter: August 1.
• Fourth Quarter: November 1.

Mortgage/Transfer Tax

NJ Realty Transfer Fees:

• Where consideration is less than $350,000:
  • $2.00 per $500 or fraction thereof of consideration up to $150,000
  • $3.35 per $500 or fraction thereof of consideration in excess of $150,000 but not in excess of $200,000
  • $3.90 per $500 or fraction thereof of consideration in excess of $200,000 but not in excess of $350,000
• Where Consideration is GREATER than $350,000:
  • $2.90 per $500 or fraction thereof of consideration up to $150,000
  • $4.25 per $500 or fraction thereof of consideration in excess of $150,000 but not in excess of $200,000
  • $4.80 per $500 or fraction thereof of consideration in excess of $200,000 but not in excess of $550,000
  • $5.30 per $500 or fraction thereof of consideration in excess of $550,000 but not in excess of $850,000
  • $5.80 per $500 or fraction thereof of consideration in excess of $850,000 but not in excess of $1,000,000
  • $6.05 per $500 or fraction thereof of consideration in excess of $1,000,000

Reduced fees for Senior Citizens, Blind Persons, Disabled Persons or property which is low or moderate income:

• Consideration of less than $350,000:
  • $ .50 per $500 or fraction thereof of consideration up to $150,000
  • $1.25 per $500 or fraction thereof of consideration over $150,000 but not in excess of $350,000
• Consideration Greater than $350,000:
  • $1.40 per $500 or fraction thereof of consideration not in excess of $150,000
  • $2.15 per $500 or fraction thereof of consideration in excess of $150,000 but not in excess of $550,000
  • $2.65 per $500 or fraction thereof of consideration in excess of $550,000 but not in excess of $850,000
  • $3.15 per $500 or fraction thereof of consideration in excess of $850,000 but not in excess of $1,000,000
  • $3.40 per $500 or fraction thereof of consideration in excess of $1,000,000

"Mansion Tax" There is also due from the buyer 1% of the total consideration for all residential transfers and commercial transactions involving class 4A property where the consideration is in excess of $1,000,000.

non-resident sellers to make an Estimated Gross Income Tax payment upon the sale/transfer of real property located in NJ. This is shown on the settlement statement.

Spousal Joinder Requirements/Homestead

Non titled spouse must join in the deed or mortgage if the PQ is the principal marital residence. Similar rights would apply to a same sex couple joined in a civil union. See: N.J.S.A. 3B:28-3: During life every married individual shall be entitled to joint possession with his spouse of any real property which they occupy jointly as their principal matrimonial residence and to which neither dower nor curtesy applies. One who acquires an estate or interest in real property from an individual whose spouse is entitled to joint possession thereof does so subject to such right of possession, unless such right of possession has been released, extinguished or subordinated by such spouse or has been terminated by order or judgment of a court of competent jurisdiction or otherwise.

There is one clear case where a non-title spouse need not join in a mortgage made by the spouse in title. Where a married person is buying property and granting a purchase money mortgage, the nontitle spouse need not join in such a purchase money mortgage. N.J.S.A. 3B:28-3.1 (c) specifically grants such mortgages priority over the right of possession.

Who May Serve As Trustee On Deed Of Trust

Mortgages are customary in N.J.

Time Limitations

• US Judgment Liens -- 20 years, renewable for 20 years
• State Court Judgment Liens -- 20 years
• Federal Tax Liens -- 10 years (+30 days); can be refiled
• State Tax Liens -- 20 years
• Estate Tax Lien -- Federal 10 years
• State Inheritance Tax Liens --
• Mechanics Liens -- 1 year
• Financing Statements -- 5 years, can be renewed for 5 year terms
• Mortgages -- Residential Only: Earliest of 20 years from default, 36 years from making or 6 years after a determinable final maturity date/date of last payment. N.J.S.A. 2A:50-56.1
• HOA Liens --
• Condominium assessments --
• Child Support Liens --

Odd Stuff

• N.J.S.A. 46:18-11.7 allows for a NJ attorney or title insurance producer, who has made payment in full on a mortgage, to submit for recording a discharge executed as attorney in fact for the owner or holder of the mortgage provided that it is accompanied by an affidavit setting forth the circumstances of payment. The form of affidavit is provided in the statute.