New Jersey Lawyer & Attorney : Stark & Stark Law Firm : New Jersey Law Blog

New legislation has recently been enacted which exempts sales of certain residential dwellings and seasonal rentals from Bulk Sales notification requirements. According to A-2748, which was signed into law on September 14, 2011, sales of a “simple dwelling house” when the seller is an “individual”, “estate” or “trust” (as those terms are used for purposes of the New Jersey Gross Income Tax Act N.J.S.54A:1-1 et seq.) are exempt from the Bulk Sales notification requirements (N.J.S 54:50-38). A “simple dwelling house” under the new law is a dwelling unit including but not limited to a one-family or two-family building or structure, or a unit in a condominium or a cooperative. 

 

This exemption does not include structures containing more than two units of dwelling space or commercial property even if it includes units of dwelling space. 

 

The new law also exempts seasonal rental units from the Bulk Sales notification requirements when the seller is an “individual”, “estate” or “trust” (as those terms are used for purposes of the New Jersey Gross Income Tax Act N.J.S.54A:1-1 et seq.). A “seasonal rental unit” under the new law includes “a dwelling unit rented for a term of not more than 125 consecutive days for residential purposes by a person having a permanent residence elsewhere” or a “timeshare estate.” 

 

These new exemptions do not include sales where the seller is a business entity, including but not limited to a corporation or a partnership (which would also include limited liability companies). 

 

The new law took effect September 14,2011 and applies retroactively to sales and transfers on or after August 1, 2007. If you have questions regarding this new law and would like to discuss how it could potentially impact you, please feel free to contact me in my firm’s Lawrenceville, New Jersey office to discuss this matter in more detail.
 

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With the increase in foreclosures against residential properties and homeowners facing financial difficulties, the number of severely neglected and abandoned homes is on the rise.  While such situations are unfortunate for the owner of the deteriorating property, the condition of the property can also have a significant impact on neighboring property owners.  In addition to being a neighborhood eyesore, the consequences can range anywhere from a higher risk of insects, rodents or other pests, to lower property values and vandalism.  This can adversely affect the ability to sell a property in the area or even to refinance it if there are too many abandoned properties in the area.
                                   

Most municipalities have nuisance abatement and health ordinances which empower the municipality to take action to force a homeowner to correct a property condition which threatens the public health or safety.  Contacting the municipal building code official or health officer is often the first line of defense.
 

However, in some situations,  homeowners abandon their property upon the commencement of foreclosure litigation.  Since they will be losing the property through foreclosure, they vacate the property and then fail to maintain it.  New Jersey is in the forefront of addressing this issue.  Under the New Jersey Foreclosure Fairness Act” (the “Act”) passed in January 2010, lenders serving foreclosure summons and complaints on residential properties must, within ten (10) days of service, notify the municipal clerk where the property is located.  The notice must contain the name and contact information for the representative of the foreclosing lender who is responsible for receiving complaints of property maintenance and code violations. 
 

The Act also imposes upon the lender the responsibility for notifying the municipality if the owner of the residential property vacates or abandons the property after a foreclosure action has been started.   

 

If the owner of a residential property vacates or abandons any property on which a foreclosure proceeding has been commenced or if the residential property becomes vacant at any point subsequent to the lender’s filing the summons and complaint to foreclose on a mortgage, but prior to title vesting in the lender or another third party, and if the property is found to be a nuisance or in violation of any applicable State or local code, the appropriate municipal official shall notify the lender, which shall have the responsibility to abate the nuisance or correct the violation in the same manner and to the same extent as the title owner of the property.  Thus, the municipality can require the foreclosing lender to clean up an abandoned property.  If the municipality has to perform the clean up itself, thereby expending public funds to abate the nuisance or correct a violation on a residential property, then the municipality may take action against the foreclosing lender in the same manner as it could against the owner of the property.   
 

Performing any maintenance yourself on a neighboring property should not be done without express permission from the property owner and, if applicable, the foreclosing lender.  Otherwise, one could be subject to trespass charges and other potential liability.

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The names set forth on a deed may not always reflect the interests of all parties in the real property.  One such interest is a possessory one of a spouse to joint possession in property occupied as a couple’s principal matrimonial residence.  This type of interest is a statutory creation. N.J.S.A. 3B:28-3 provides that 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.   The effect of this statute is that title to property acquired by only one spouse on or after May 28, 1980 and occupied by both spouses as their principal matrimonial residence cannot be transferred without the consent of both spouses.  All other real property owned solely by either spouse which is not their principal matrimonial residence may be transferred without the consent of the other spouse.
 

This right of joint possession cannot be released, extinguished or subordinated without the consent of the spouse who is entitled to joint possession, except by judgment of a court of competent jurisdiction.
 

Pursuant to subsection b. of N.J.S.A. 3B:28-3, the right of joint possession may be released, subordinated or extinguished by either spouse by means of a premarital agreement, separation agreement, or other written instrument.  Subsection c. provides that the right of possession shall be extinguished by the consent of both parties, the death of either spouse, by judgment of divorce, separation or annulment, by other order or judgment which extinguishes same, or by voluntary abandonment of the principal matrimonial residence.
 

The right of joint possession may be subject to a mortgage lien. N.J.S.A. 3B:28-3.1 provides that the right of joint possession is subject to the lien of a mortgage, irrespective of the date when the mortgage is recorded, provided:
    a. The mortgage is placed upon the matrimonial residence prior to the time that title to the residence was acquired by the married individual; or
    b. The mortgage is placed upon the matrimonial residence prior to the marriage; or
    c. The mortgage is a purchase money mortgage; or
    d. The parties to the marriage have joined in the mortgage; or
    e. The right of joint possession has been subordinated, released or extinguished by subsection b. or c. of N.J.S. 3B:28-3.
 

Thus, if the principal matrimonial residence is being refinanced during the marriage, even if title to the property is in the name of only one spouse, the mortgage will have to be executed by both spouses.
 

For real estate in New Jersey acquired by a married person prior to May 28, 1980, a life estate interest was provided by means of dower for the wife and curtesy for the husband.
 

The statutory rights of dower and curtesy gave the non-owning spouse a right to a life estate in one-half of the real property owned by the other spouse at the time of that spouse’s death.  N.J.S.A. 3B:28-1.  Dower and curtesy interests were created upon the acquisition of the property by a spouse in that spouse’s name only - or upon the date of the marriage between the two spouses, whichever date was later - until May 28, 1980, the date dower and curtesy were abolished by the New Jersey Legislature (N.J.S.A. 3B:28-2).  Property acquired on or after May 28, 1980 is not subject to dower or curtesy, nor is property acquired before that date by an unmarried person who later married on or after May 28, 1980. Unlike the right of joint possession, all real property owned by a spouse individually, not just the principal matrimonial residence, was subject to dower and curtesy. 
 

In those situations where dower and curtesy interests still exist, the non-owning spouse must sign the deed conveying the property for the owning spouse to be able to convey clear title to a purchaser.

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Selling a home which you recently rented out because of the difficult real estate market? Well, you may discover that at closing, the state of New Jersey may want to escrow part of your closing proceeds to cover any existing tax debt or estimated taxes on any gain from the sale. 
 

Due to recent changes in the New Jersey Bulk Sale Law (N.J.S.A. 54:50-38), transfers of income producing real estate are likely to generate a notification by the buyer to the Division of Taxation of the transfer, thereby providing the State with the opportunity to inquire into possible tax debts of the transferor, and perhaps requiring a possible escrow of sale proceeds at closing.
 

Bulk Sale notification previously pertained to the sale of assets of a business which were not sold in the ordinary course of that business. Now, as a result of a change in the law, and a recent interpretation of the amended Bulk Sale notice law, the State of New Jersey is applying the Bulk Sale Law to transfers of income producing real estate.
 

Effective August 1, 2007, the Bulk Sale law in New Jersey was modified to provide, among other things, that whenever a person, subject to any state tax, shall make a sale or transfer of any part of his business assets, otherwise than in the ordinary course of business, the person taking title shall notify the Division of Taxation of the proposed acquisition at least 10 days prior to taking possession. According to the statute, failure to comply with the notice requirement will cause the purchaser to be personally liable for the payment of any State taxes due from the seller.  This would include taxes, fees, interest and penalties imposed by any State tax law. To protect himself from this potential liability, the person taking title will want to file a bulk sale notice.
 

Technical Bulletin TB-60, issued by the Division of Taxation on July 3, 2008, defined a “bulk sale” to mean any sale or transfer of a person’s business assets, not made in the ordinary course of business. “Business assets” include “realty if the primary use of the realty is to support a business on its premises.” “Business” means any endeavor from which revenue is realized for the purpose of generating a profit or loss.
 

According to TB-60, for a bulk sale notice to be effective, it must be filed by the purchaser/transferee, on the appropriate Division of Taxation form, include a signed agreement between the parties setting forth the terms of the transaction and be received by the Division at least 10 days before the proposed transfer. The Division will review the transferor’s account to identify outstanding liabilities.  Within 10 days, the Division will forward a notice to the attorney or designee for the transferee of the amount, if any, to be held in escrow at closing. The amount to be escrowed will include existing tax debts, delinquencies, assessments and importantly, tax on the gain from the transfer of the property. The transferor may file an Asset Transfer Tax Declaration form to assist the Division on calculating the estimated tax on the gain. This may cause the escrow amount to be adjusted. Payment of the taxes identified as due, would then be made from the escrow.
 

Thus, if a rental property, even though residential in nature, is sold, the Division of Taxation seeks to be notified 10 days in advance, and if a buyer does not, the buyer risks becoming liable for the tax debt of the seller.

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People commonly think of home ownership in the form of owning a single family house situated on its own parcel of land.  However, increasingly, condominiums, and to a lesser extent, co-operatives, are providing  alternative forms of home ownership.  What are these forms of ownership and what is the difference between them?

In New Jersey, condominium ownership is no longer unusual.  It is a form of common ownership in which title to individual units vests in each unit’s owner.  In addition, each unit owner also owns a percentage interest in the common areas which are shared by the unit owners, e.g.,  the land, building exteriors and any facilities for the unit owners’ common use.  Descriptions of both the individual units as well as the common areas are set forth in a Master Deed which is recorded in the County Clerk’s Office in the county where the condominium is situated.  Thus, condo owners own their unit plus a percentage interest in the condominium’s common areas. 

Co-operatives appear  more prevalent in New York City and North Jersey than Central Jersey. In this form of common ownership, the owner’s interest in an individual unit is held in the form of a leasehold interest.  The individual owner acquires a proprietary lease to his/her unit.  In addition, each unit “owner” owns shares of stock in the co-operative corporation which owns the underlying land and improvements on the land as well as those facilities intended for the common use of the owners of the co-operatives.  Co-op owners have a leasehold interest in their unit and their only ownership rights to the common areas are through ownership of  shares of stock in the co-op corporation which owns the common areas.

Condos  are managed  by  unit owners associations which manage the improvements for which they are responsible, i.e.,  the land and the common purpose facilities. Some co-ops are similarly  managed by associations.  In others, the co-operative corporation itself manages the land, and improvements it owns.  Both condo and co-op forms of ownership generally charge the owners of their units a monthly maintenance fee.   In condominiums, real estate taxes are assessed against the individual owners.  In co-operatives, however, real estate  taxes are assessed against the co-operative corporation, not the individual owners. 

Financing a condominium can be accomplished in the same manner as any other fee simple purchase, by mortgaging the unit owner’s interest in the unit.  However, since a co-op owner has a leasehold interest in his unit, lending institutions generally  require a pledge of the unit owner’s stock and an assignment of the leasehold interest as collateral.  Some lenders, however, now provide a leasehold mortgage.  For certain co-operatives created prior to 1988, financing may be difficult to obtain.

Condominium ownership is a form of ownership created by statute, and did not exist before 1970 when the Condominium Act, N.J.S.A. 46: 8B-1 et seq. was enacted in New Jersey.   Co-operative ownership was originally created in New Jersey under common law.  However, the Co-Operative Recording Act of New Jersey, N.J.S.A. 46:8D-1 et. seq. effective May 9, 1988 provided a statutory basis for the creation of co-operatives.  Pursuant to the 1988 law, a Master Declaration and Master Register of Units is recorded in the County Clerk’s Office to create the co-operative.  Unit transfers are accomplished by recording the proprietary lease or assignment of the lease.  Co-operatives in existence prior to the effective date of the Co-Operative Recording Act are not subject to these statutory provisions. 

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As residents of  Princeton Borough and Princeton Township are well aware, their municipalities  have undertaken a revaluation of the real estate within their boundaries for tax assessment purposes.   The last revaluation performed in Princeton Borough and Township was in 1996.  Recently, each municipality notified property owners by first class mail of their preliminary assessments.  The preliminary values were established by Appraisal Systems, Inc., an independent professional appraisal firm hired by the Princetons to perform their revaluations.  The date of the property revaluation is as of October 1, 2009.  These new values, once confirmed, will become a property’s new assessment, effective with the 2010 tax year. 

 

The purpose of the revaluation is to cause the tax burden to be more fairly shared by the properties, based on new tax assessments resulting from current true values of properties.

 

The Mercer County Board of Taxation ordered the Princetons to undergo a revaluation of the real estate within their borders when the individual assessment - sales ratios varied too widely within each municipality.  This ratio is determined by dividing the assessed value of a property by an accurate sales price, with the result being a percentage.  For example, if a property is assessed at $100,000 and sold for $200,000, the assessment sales ratio is 50%.  By 2008, these percentages were 40% in the Borough and 47% in the Township. 

 

The valuation of properties must be performed in accordance with state law as set forth in N.J.S.A. 54:4-1 et seq.  For every property, the revaluation appraiser creates a property record card which contains specific information about the physical attributes of the property (e.g., dimensions, age, condition of any buildings, etc.) and other information which may be of assistance to the appraiser (existing appraisals, recent sales, rent amounts, etc.).  The card is created with information obtained based on an actual inspection of the individual premises.  If entry onto the premises is not possible, the valuation will be an estimated one. 

 

In the Princetons, the preliminary valuations have now been established and letters notifying taxpayers recently mailed.  Each taxpayer will be provided with an opportunity to attend an individual informal review of the value proposed with a representative of Appraisal Systems, Inc.  At such time, Appraisal Systems, Inc. may consider revisions to its proposed valuation which may increase or decrease (or result in no change to) the proposed assessment, based on additional input from the taxpayer.

 

Taxpayers will have until May 1, 2010 to file an appeal with the Mercer County Board of Taxation if they are not satisfied with their new assessment.  Thereafter, an appeal can be taken to the State Tax Court within 45 days, with further appeals possible. 

 

Once the revaluation is completed and new property assessments are made by the tax assessor, a new municipal tax rate will be determined.  Taxpayers will then know to what extent, if any, their taxes will change due to their new assessment.

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Our recording system, having its roots in England, is basically a system for determining priority of legal claims against real estate. Thus, when one acquires title to real estate, or mortgages property, those instruments affecting title are usually recorded in the county clerk’s office. 

N.J.S.A. 46:21-1 entitled, “Recorded deeds or instruments as notice to subsequent judgment creditors, purchasers and mortgagees,”  makes clear the purpose of our recording statutes.  It states:

Except as otherwise provided herein, whenever any deed or instrument of the nature or description set forth in section 46:16-1 of this title, which shall have been or shall be duly acknowledged or proved and certified, shall have been or shall be duly recorded or lodged for record with the county recording officer of the county in which the real estate or other property affected thereby is situated or located such record shall, from time to time, be notice to all subsequent judgment creditors, purchasers and mortgagees of the execution of the deed or instrument so recorded or of the contents thereof.

N.J.S.A. 46:16-1 sets forth a non-exclusive list of instruments entitled to be recorded.  While, the recording of a document does not affect it’s validity as between the parties to the document, the consequences of not recording is set forth in N.J.S.A. 46:22-1:

Every deed or instrument of the nature or description set forth in section 46:16-1 of this title shall, until duly recorded or lodged for record in the office of the county recording officer in which the affected real estate or other property is situate, be void and of no effect against subsequent judgment creditors without notice, and against all subsequent bona fide purchasers and mortgagees for valuable consideration, not having notice thereof, whose deed shall have been first duly recorded or whose mortgage shall have been first duly recorded or registered; but any such deed or instrument shall be valid and operative, although not recorded, except as against such subsequent judgment creditors, purchasers and mortgagees.

Thus, the principal purpose of New Jersey’s Recording Act is to protect subsequent judgment creditors, bona fide purchasers, and bona fide mortgagees against assertion of prior claims to land based upon unrecorded instruments.

 

This statutory scheme, is referred to as a “race-notice” system.  A party who is a bona fide purchaser, mortgage holder, etc., for value and without any actual or constructive notice of adverse interests, is entitled to the protection of this statute.

 
The requirements for recording an instrument affecting title or an interest in real estate are not onerous; the instrument needs only to:   

• be in English or accompanied by an English translation;
• bear a signature;
• be acknowledged or proved as required by statute;
• have the names appear typed, printed or stamped beneath the signatures of any parties to the instrument and the officer before whom it was acknowledged or proved;
• have the required recording fee paid;
• include the name and signature of its preparer on the first page and the tax block and lot number if the instrument is a deed conveying real property   

If the instrument meets all the requirements for recording, the county recording officer will then copy it into the record and return the original document to the person submitting it for recording.
   
 

It becomes important to record all instruments affecting title to real estate to protect the recording party, as it will be generally presumed that all persons who deal with the property after that will do so with knowledge of the recorded instrument.

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The popular federal tax credit of up to $8,000 provided to first-time home buyers who purchase a home in 2009 due to expire November 30th has been extended until April 30, 2010.  In addition, a new tax credit up to $6,500 will be available to certain "step-up" (or downsizing) homebuyers who are current homeowners who have resided in their homes for at least five years.

 

The original 2009 tax credit was part of the American Recovery and Reinvestment Act of 2009.  On November 6, 2009, President Obama signed the "Worker, Homeownership and Business Assistance Act of 2009" into law.  The first-time homebuyer tax credit is equal to 10% of the purchase price of a home, up to a maximum credit of $8,000.  It is available to certain first-time home buyers who purchase a main residence on or after January 1 and before December 1, 2009.   This tax credit has now been extended to April 30, 2010.  Closing must occur by April 30th, or a binding contract must be entered into by that date with closing to occur within 60 days.  First-time home buyers who purchased their main home in 2008 are entitled to a credit of up to $7,500. The new credit for step-up homebuyers starts on December 1, 2009.  This article is limited to a discussion of the tax credit available for 2009 purchases, including the recent extension and expansion of that credit.

 

There are some limitations on the available credit as extended.  First, the credit is only available for homes costing up to $800,000.  Homes costing in excess of $800,000 are not eligible.  Purchasers under the age of 18 cannot claim the credits.

 

There are income limits as well.  Under the original provisions, you were  allowed the full amount of the credit, i.e., $8,000,  if your modified adjusted gross income was $75,000 or less, if single, and $150,000 or less, if married filing jointly.  These income levels have been increased by the recent legislation so that you are allowed the full credit with an income up to $125,000 for single filers and $225,000 for married filers.  The credit is not available to taxpayers with incomes greater than $145,000 for single filers and $245,000 for married filers.  Between these two income levels for each type of filer, the credit is gradually phased out.  

 

The credit is available to first-time home buyers who are purchasing a main home, i.e., principal residence, whether it is a house - new or resale - mobile home, condominium, cooperative apartment, etc.  The purchase must occur by April 30, 2010, or the purchaser must have entered into a  binding contract by midnight April 30, 2010 with closing to occur within 60 days.   The purchase date is the closing date, when title transfers to the buyer.  For someone who is constructing their main home (not buying it from a home builder), the purchase date is the date you first occupy it.

 

If the home ceases to be your main home within three years of the closing date, it is possible that the credit will be recouped by the government.

 

A first-time home buyer is someone over age 18, who has not owned another main home during the 3-year period immediately preceding the closing date of the qualifying purchase.  If you or your spouse owned a main home during the three preceding years, then neither will qualify for the credit. 

 

The new tax credit of 10% of the purchase price of a home, up to $6,500, is available starting December 1st to homeowners (and their spouses) who have lived in their current home for five consecutive years out of the eight years preceding the closing on their new home.

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Goblins and ghosts.  Eerie graveyard scenes.  With Halloween coming, cemeteries always take on some added  interest. New Jersey cemeteries are governed by the "New Jersey Cemetery Act, 2003."  N.J.S.A. 45:27-1 et seq.  Under the Act, a cemetery is defined as "any land or place used or dedicated for use for burial of human remains or disposition of cremated human remains...."  N.J.S.A. 45:27-2.

 

General supervision and regulation of all cemetery companies and their property, equipment and facilities is exercised by a 10 member New Jersey Cemetery Board.  N.J.S.A. 45:27-1 While many historical cemeteries exist in New Jersey, any cemetery established after December 1, 1971 must be owned and operated only by a governmental entity, religious organization or a cemetery company organized in accordance with the New Jersey Cemetery Act.  N.J.S.A. 45:27-6.  Those cemetery companies organized after December 1, 1971 must be nonprofit corporations N.J.S.A. 27-7(a).

 

Before selling grave sites, cemetery companies are required to survey or map out that part of the cemetery where graves exist, showing the location of the graves with roadways, paths and building areas as the cemetery company directs.  N.J.S.A. 45:27-16(b).  The map shall be kept at the cemetery's office and made available for inspection by owners of the interment spaces.  N.J.S.A. 45:27-17 (b) & (c).

 

The Cemetery Act also requires a cemetery company to keep records of the owner of each interment space that has been conveyed by the company and each transfer of an interment space to which the company has consented.  A transfer of an interment space is not complete until it is recorded on the books of the cemetery company and any required fees paid.  N.J.S.A. 45:27-19(b).

 

The conveyance document for the interment space shall include the actual amount paid for the space, a description of the space sufficient to indentify it, the dimensions of the space and any other information that may be required by the New Jersey Cemetery Board. N.J.S.A. 45:27-19(c).

 

Conveyances issued by a cemetery company shall indicate whether the company is transferring title to the interment space or only a right to burial in the space. N.J.S.A. 45:27-28(a). Subject to certain restrictions, the owner of an interment space has the right to transfer that space, or an interest in that space, to any person.  The transfer shall be effective on recordation by the cemetery company of the transfer.  N.J.S.A. 45:27-28(b).

 

Once human remains have been buried in a grave or crypt, transfer of title can be made by the owner by will, if specifically identified in the will; otherwise, title will pass first to the surviving spouse and the owner's children, if any, per stripes, as equal tenants in common.  N.J.S.A. 45:27-28 (c)(1)(a).  If an owner leaves a surviving spouse, and has children from a prior marriage or relationship, then those children and the surviving spouse shall be owners of the grave or crypt as tenants in common.  N.J.S.A. 45:27-28(f).

 

Transfer of ownership of an existing grave or crypt containing human remains can also be made to an existing co-owner or to an heir at law of the person buried in the space.  N.J.S.A. 45:27-28(c)(2) & (3).

 

When there are two or more owners of an interment space, each owner's interest may only be transferred by that owner or such owner's authorized representative.  N.J.S.A. 45:27-29(a)(1).  Co-owners may also designate one or more of the co-owners to represent them by filing a written notice of such designation with the cemetery company.  N.J.S.A. 45:27-29(b).  In such event, the cemetery company shall follow the direction of the representative as to interment in the space.  If no such representative is designated, the cemetery company may rely on the direction of any of the co-owners of the space.

 

Title to cemetery plots is not such a scary topic, so don't be spooked by the subject!

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When buying and selling real estate, in nearly every transaction, a written contract is prepared for all parties involved to sign.  One reason for this is obvious - to make certain that all parties can clearly see, and are in agreement with, all the terms and conditions of the transaction.  This avoids any misunderstandings as to such important terms as the sales price, the description of the property being sold, the closing date, and any contingencies.  However, another important reason to have a signed written agreement is to comply with New Jersey’s statutory requirements for enforcement of such agreements for the transfer of an interest in real estate.
 

New Jersey has enacted a law setting forth certain requirements essential for the enforceability of agreements to transfer an interest in real estate.  Those requirements have been codified in N.J.S.A. 25:1-13, the N.J. Statute of Frauds, which states that an agreement to transfer an interest in real estate shall not be enforceable unless:

a.  A description of the real estate sufficient to identify it, the nature of the interest to be transferred, the existence of the agreement, the identity of the transferor and transferee are established in a writing signed by or on behalf of the party against whom enforcement is sought; or
   
b.  A description of the real estate sufficient to identify it, the nature of the interest to be transferred, the existence of the agreement and the identity of the transferor and the transferee are proved by clear and convincing evidence.
 

In most instances, parties to a real estate transaction comply with Subsection (a) above.  A standard written contract identifies the buyer and the seller, describes the property being sold, the type of title being transferred, and is then signed by all parties.  In addition to compliance with the statutory requirements, these agreements also set forth many other terms, conditions and contingencies between the buyer and the seller so that each party will understand their obligations under the sales contract.
 

Even with the existence of Subsection (b) above, which provides a statutory basis for enforcing certain agreements for the transfer of real estate without a signed document, the New Jersey courts have not always found an agreement to be enforceable when the alleged agreement is oral.  This appears particularly so when the negotiations between parties indicate that the parties intend to be bound only by a formal written contract.  See Prant v. Sterling, 332 N.J. Super. 369 (Ch. Div. 1999), affirmed 332 N.J. Super. 292 (App. Div. 2000) and Morton v. 4 Orchard Land Trust, 362 N.J. Super. 190, (App. Div. 2003), affirmed 180 N.J. 118 (2004).   
 

Thus, it is important to put any agreement for the transfer of real estate in writing with all significant terms included and to have it signed by all parties to the transaction to help insure the agreement’s enforceability.

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