The bill amends New Jersey's tax sale law to enhance the processes related to the sale and redemption of tax sale certificates. Notably, it extends the premium due to escheat to municipalities in 2024 by one year and stipulates that if a property is sold at a judicial sale or Internet auction, the premium will be refunded to the lienholder under certain conditions. Additionally, municipalities or their assignees are granted the authority to initiate foreclosure actions on tax sale certificates after a specified period, particularly for properties deemed abandoned. The bill also emphasizes the rights of property owners and their heirs, ensuring they are informed of their ability to demand judicial sales to protect their equity in the property.

Moreover, the bill outlines the allocation of costs and attorney fees in in rem foreclosure actions, mandating that all incurred costs will be equitably apportioned and added to the redemption amount. It specifies that these costs include expenses from judicial sales or Internet auctions conducted by the county sheriff. The legislation also establishes that holders of tax sale certificates can claim a first lien on surplus funds for unreimbursed costs incurred during these sales. Property owners must be notified of their right to demand a judicial sale or auction, with a deadline set for the day before final judgment. The bill aims to streamline the foreclosure process while safeguarding property owners' rights and ensuring fair market value is reflected in the sales. The act takes effect immediately and applies to tax liens for which the right of redemption has not been foreclosed as of the effective date.

Statutes affected:
Introduced: 54:5-97.1, 54:5-104.59, 54:5-104.64
Advance Law: 54:5-97.1, 54:5-104.59, 54:5-104.64
Pamphlet Law: 54:5-97.1, 54:5-104.59, 54:5-104.64