Thinking of buying property in New Jersey? Uncover what you need to know about title searches in New Jersey, how they work, and what’s different from other states. This guide will be your roadmap to a smooth and secure real estate transaction.

New Jersey Search Window

Unlike many states with a relatively short search window, a typical title search in New Jersey lasts 60 years. This ensures you have a clear picture of the property’s ownership history and any potential claims on the title.

This timeframe helps identify past owners, recorded mortgages, liens, easements, and legal issues like judgments or unpaid taxes. 

Navigating Marital Rights and Ownership Structures

New Jersey’s property ownership laws can get technical, especially regarding how marriage factors in.  Here’s a simplified breakdown:

• Dower Rights (pre-1980): If the property you’re interested in was acquired before May 28th, 1980, and the seller is married, their spouse might have dower rights. This means the spouse could be entitled to a portion of the property’s value even if their name isn’t on the title.

• Joint Tenants: Both spouses own the property equally. Upon one spouse’s death, the surviving spouse automatically inherits their share.

• Joint Tenants with Rights of Survivorship (JTWROS): Similar to joint tenants, but ownership automatically transfers to the surviving spouse upon death, avoiding probate.

• Tenants by the Entirety: Exclusive to married couples. Both spouses own the entire property jointly, and upon one spouse’s death, the survivor automatically inherits the whole property.

• Tenants in Common: Each spouse owns a specific, undivided share of the property. Shares can be unequal; upon death, a spouse’s share passes according to their will or, by default, to their heirs.

Knowing the ownership structure will help determine if the seller has the full authority to sell the property. A title search will reveal this information.

Liens and Why They Matter

You don’t want to buy your dream New Jersey property only to discover a hidden financial burden lurking in the background – a lien. A lien is a legal claim against a property that serves as collateral for a debt. 

If you unknowingly inherit liens on a property, you may be responsible for settling the outstanding debts to clear the title. This can lead to unexpected financial strain and legal complications, making a thorough title search crucial before finalizing any property purchase.

• State Tax Liens (20 years): Owed for unpaid state taxes like income or sales tax. If unresolved, the state can foreclose.

• Mechanics Liens (10 years): Filed by contractors, subcontractors, or suppliers for unpaid work or materials on the property. These can be serious as they can take priority over your mortgage.

• HOA Liens (No Expiration): Homeowners’ associations can place liens for unpaid association fees or fines. These don’t expire and can prevent you from selling the property.

• Condominium Liens (5 years): These are similar to HOA liens but are placed by condominiums for unpaid condo fees or assessments. They typically expire after five years but can be renewed.

• Federal Tax Liens (10 years + 30 days): The IRS can place a lien for unpaid federal taxes. These can be aggressive and have priority over most other liens. There’s a 30-day redemption period after a foreclosure sale to potentially get the property back.

• Federal/State Judgments (20 years): Court judgments for unpaid debts can result in liens on the property. These typically last 20 years and can impact your ability to sell freely.

• UCC/Financing Statements (5 years): These liens secure loans using personal property attached to the real estate, like appliances. They generally expire after five years but can be refilled.

Don’t Miss This: Superior Court Liens in New Jersey

Unlike some liens that target specific properties, a Superior Court lien can latch onto all real estate owned by the seller throughout New Jersey.

This means that if the seller has unpaid debts that resulted in a court judgment, the creditor could place a claim on the property you’re interested in. These judgments can last up to 20 years, making a comprehensive Superior Court search vital during your title investigation.

Don’t settle for just a county-level search – ensure your title professional also checks Superior Court records. This extra step can uncover hidden legal claims that could impact your ownership rights and future ability to sell freely.

Title Search and Taxes

New Jersey property taxes are a two-tier system collected by the county and the municipality (city/town) where the property resides. To complicate things, each municipality sets its due dates, so there’s no one-size-fits-all schedule across the state. 

This separation means a title search won’t necessarily reveal outstanding tax bills. You should check with the local tax collector’s office to confirm the current tax status.

Tidelands

New Jersey has a unique property ownership concept called Tidelands, also known as Riparian Lands. These are lands that border or were once touched by natural waterways, both current and historical. 

Tidelands are owned by the State of New Jersey and held in trust for the public. This means the land itself isn’t necessarily for sale, but…

… the state may grant access through instruments like:

• Tideland Grant: You can purchase a portion of the Tideland outright.

• Tideland License: This grants you a short-term lease (typically 2-5 years) for using the Tideland.

• Tideland Lease: This provides a long-term lease (usually 20 years) for using the Tideland.

Crucially, many areas that were once wetlands or waterways have been filled in and developed over time. This means even properties far from the current shoreline could be classified as Tidelands and claimed by the state.

If the property you’re interested in falls under a Tideland claim, it can have significant implications. An unresolved Tideland claim can shadow the property’s ownership, potentially hindering future sales or refinancing. Resolving a Tideland claim with the state can involve significant fees.

Let’s Talk

Understanding New Jersey’s title search intricacies empowers you to make informed decisions. We can help! Our advanced technology, local ground searchers, and title search expertise ensure a thorough investigation. Avoid hidden surprises and secure your dream property with confidence.

Let’s talk – contact us today!