The New Jersey Legislature has introduced a bill that would require premium payment made to a municipality by the purchaser of a tax lien to be paid to the property owner under certain circumstances.
Click here to register for our complimentary Excess Equity webinar.
The bill, SB 718, is being sponsored by Sen. Renee Burgess, D-Irvington.
The bill would amend R.S. 54:5-33 to state, “Payment for the sale shall be made before the conclusion of the sale, or the property shall be resold. Any premium payment shall be held by the collector and returned to the purchaser of the tax sale certificate if and when redemption is made. No later than one year after a final judgment of foreclosure is entered vesting title to the property in the lienholder, the premium payment shall be deposited with the court and shall be paid, upon application therefor, to the person against whom a judgment in foreclosure has been recovered. If no application is made within one year of the date that the premium is deposited with the court, then upon application to the court by the chief financial officer of the municipality in which the property is located, the premium shall be turned over to the chief financial officer and become a part of the funds of the municipality. In the event that a petition of bankruptcy has been filed by the property owner, that limitation shall be extended for each day that the foreclosure action is precluded by the bankruptcy filing.
It would further state, “In the event that a property is required to be sold at a sheriff’s sale, the premium shall be refunded to the holder of the tax lien if the property is sold to a third party within five years from the date of sale.”
Enjoy more features included in the Excess Equity Watch library by clicking here.