Time to Bulk Up?

TIME TO BULK UP?

The New Jersey Division of Taxation has provided notice that real estate transactions in New Jersey are now subject to New Jersey’s Bulk Sales notice requirements if the property generate any income, which would include renting the property for any period of time. This does not apply to the sale of an owner-occupied single family home or a sale of real estate in the ordinary course of the seller’s business. Purchasers must notify the Division of Taxation at least 10 days prior to taking possession of the property. The Division will notify the purchaser within 10 days of receipt if it has a claim against the seller for taxes and the amount of the claim. If the purchaser fails to comply, then the purchaser will be personally liable for any tax owed by the seller to the state. For your convenience, Baron & Posternock, LLP is pleased to make the required form for the purchaser to file available to you. Please email us at lsacalis@barpostlaw.com.

AN EXCEPTION TO EVERY RULE

On June 21, 2010, the New Jersey General Assembly unanimously approved A-2748, by a vote of 79-0. This legislation exempts seasonal rental properties and certain other residential dwellings from bulk sales notification requirements. Before this bill can reach Governor Chris Christie’s desk to be signed into law, it must still be approved by the Senate Commerce Committee and the full Senate. For additional information of A-2748, please visit NJAR®’s Bulk Sales Notice Requirements webpage.

CENSUS WORKERS AND BROKERS/AGENTS

The NAR has received reports that brokers and agents have been contacted by individuals claiming to be U.S. Census workers requesting information about the owners or occupants of properties that the brokers or agents have listed for sale. In some cases, these reports indicate that the Census workers aggressively sought from brokers or agents such information and may have even advised that the brokers or agents were legally obligated to provide such information.

NAR contacted the U.S. Census Bureau to learn more about their practices and the duty, if any, of real estate professionals to provide information about the occupants of properties for which they may be providing real estate services.

The Census Bureau explained that its workers, called “enumerators,” are instructed to make at least three personal visits and three telephone calls to each residence for which a mailed census form is not returned. If enumerators are not successful after such contacts in reaching occupants to obtain census information, they are instructed to seek information from potentially knowledgeable “proxy” sources, such as neighbors or others. Another potential proxy source from whom some enumerators may have requested information are real estate brokers or agents identified on a “For Sale” sign posted on a property of interest that happens to be for sale at the time census information is being collected. The information requested may include that about property owners or residents, or whether the property is vacant, being offered for sale or rent, or rented or otherwise occupied on an occasional basis.

As a result of its discussions, the NAR offers the following summary advice:

• Real estate professionals who list residential property for sale or lease are not obligated by law to provide to Census enumerators information about the owners or occupants of such properties;
• Real estate professionals who are contacted by Census enumerators for information about the owners or occupants of property listed for sale or rent should determine what information they may or should provide by considering the extent to which the owner, in the property listing agreement, has authorized them to offer such information;
• Alternatively, real estate professionals who are contacted by Census enumerators for information about property owners or occupants of listed properties may choose to consult with the owner for direction as to what information, if any, may be provided to the enumerator, and provide to the enumerator only that information the owner authorizes to be made available.

The Census Bureau also provided the following link to its webpage showing contact information for its various regional offices: http://www.census.gov/regions/. Other questions or concerns about Census enumerator contacts of real estate professional should, in each case, be referred initially to the appropriate region office for resolution.

-Dan Posternock

***The information included in this newsletter is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.