Tax Sale

NJ Tax Sale Foreclosures Exceptions

For In Rem (Schedule B-II)

Consequences of the exercise of the right of redemption for a period of three (3) months from the entry of final judgment, pursuant to N.J.S.A. 54:5-104.67, or re-opening or vacating of the final judgment for a period of one (1) year from the entry thereof, pursuant to R. 4:50.

For In-Personam (Schedule B-II):

Consequences of the exercise of the right of redemption for a period of three (3) months from the entry of final judgment, pursuant to N.J.S.A. 54:5-87, or re-opening or vacating of the final judgment for a period of one (1) year from the entry thereof, pursuant to R. 4:50.

For Both:

Schedule B-I: Proof is required that the owner whose interest was divested by the foreclosure is no longer in possession of the land insured.

Schedule B-II:

If any right of the United States is affected by the foreclosure: Right of redemption of the United States pursuant to 28 U.S.C. §2410. [May be omitted 120 days following the date of the sheriff’s sale if the sole interest of the U.S. is a Federal Tax Lien; otherwise, may be omitted one (1) year following the date of the sheriff’s sale.]

If the foreclosure documents utilized only tax map references: Owing to variations between tax map and record descriptions of the subject premises, policy will insure [insures] only those lands in common to both.

Consequences of an attack on the estate or interest insured herein under the Federal Bankruptcy Law or any creditors' rights law or state insolvency law. [May be omitted two (2) years following the date of the final judgment, unless other circumstances dictate that it be retained.] Remember that all covenants, conditions, restrictions and easements existing on the land carry through unaffected by the tax sale foreclosure (i.e. affordable housing restriction even if it indicates that it expires upon a foreclosure.)