New Jersey Senate Bill S718

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires premium payment made to municipality by purchaser of tax lien to be paid to property owner under certain circumstances.

Impact

By modifying R.S.54:5-33, S718 establishes that upon the entry of a final foreclosure judgment vesting title in the lienholder, the premium must be deposited with the court for disbursement to the affected property owner. This move is aimed at ensuring property owners are not deprived of potential financial resources during the foreclosure process. Additionally, if the premium is not claimed within a year after its deposit, it will revert to the municipality unless a chief financial officer requests it, making the municipal financial processes more accountable.

Summary

Senate Bill S718 proposes significant amendments to the existing law concerning tax liens and premium payments paid to municipalities. The bill dictates that, under specific conditions, any premium paid by a purchaser of a tax lien shall be directed towards the property owner rather than retained by the municipality. The core intention is to provide property owners with a more direct benefit from premium payments during foreclosure proceedings, which can significantly impact their financial circumstances and property rights.

Contention

The bill has sparked a range of opinions among legislators and stakeholders. Supporters argue that it protects property owners, enabling them to recover funds that rightfully belong to them, particularly in tightly contested foreclosure scenarios. Conversely, critics may raise concerns about potential revenue loss for municipalities that rely on these payments for funding services, seeing the bill as a risk to municipal budgets. Additionally, questions about the administrative burden on courts in managing these disbursements to property owners may also be raised.