On September 14, 2011 a retroactive amendment to New Jersey’s Bulk Sale Law was signed into law by Governor Christie. This amendment is good news for real estate practitioners and homeowners as it provide clarifications and limitations to the applicability of the statute. Technical Bulletins issued previously by the New Jersey Division of Taxation had resulted in delays to countless transactions. The new legislation sets limits, excluding sales of a simple dwelling unit by an individual, estate or trust. Other exclusions are also provided, including certain transfers of a seasonal rental unit. The Act also eliminates liability for purchasers if the Director fails to provide timely response to a Purchaser Notice within 10 day period. 

Please note that LLC’s and other corporate entities are still subject to bulks sales requirements. For a copy of the new legislation, click here.