Selling Rental Property

NJ Real Estate Transactions Subject to Bulk Sales Notice Requirements 

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 generates 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.

FYI- The New Jersey Association of Realtors is working with legislators to exempt single family homes and seasonal rental properties.  In the meantime, buyers and sellers of rental real estate must comply with notice requirements (title companies and real estate agents have the forms).