When it comes to selling your home, know whom you are dealing with

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

Real estate crook gets caught!

Hudson County Man Charged In Multimillion-Dollar Mortgage Fraud Scheme

It always amazes us how far people can sink when they try to make a buck. The Department of Justice has released information about one criminal got caught bilking banks out of mortgage money.

According to the press release:

"A Hudson County, New Jersey, man has been indicted for his role in running a large-scale mortgage fraud scheme that involved properties in Jersey City, Union, and elsewhere in New Jersey and caused losses of millions of dollars, U.S. Attorney Craig Carpenito announced today.

"Anthony Garvin, 49, of Jersey City, was charged in a superseding indictment returned June 25, 2019, with one count of bank fraud conspiracy and five counts of bank fraud. Garvin was originally indicted on one count of bank fraud conspiracy and one count of bank fraud on Jan. 11, 2019."

The scheme was to locate distressed sellers and put together short-sales.  Turns out, though that the buyers didn't really qualify for loans, and, guess what, the fraudsters lied!

You can read the full press release here.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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Getting rid of a construction lien in New Jersey

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

Removing an Invalid Construction Lien

New Jersey has a law that protects contractors from customers who refuse to pay.  Formerly known as mechanic's liens, New Jersey calls them Construction Liens.  While the purpose of this post is not to explain the construction lien process, what do you do when there's an invalid construction lien.

Here's an article from the New Jersey law firm of Start & Stark that explains the problem and the remedy.

"As the owner of a parcel of property, you might someday be faced with a scenario wherein a construction lien filed by a contractor who performed work for you was either improperly filed, or is simply invalid on its face. The issue becomes what is the proper way to remove and/or discharge this construction lien so that the property is no longer encumbered.

Although the process for a party to file a construction lien against a residential property, as compared to a commercial property, is different, the relevant section of the New Jersey Lien Law which deals with the discharge of an improper or invalid construction lien is the same. N.J.S.A. 2A:44A-15 provides that if a lien claim is without basis, the amount of lien claim is overstated, or the lien claim is not filed in accordance with the relevant sections of the lien law, nor in the time required by the act, the lien claimant shall forfeit the rights to this lien or any subsequent related lien. In a nut shell, this means that if the lien claim is not timely filed, whether residential or commercial construction, or the lien claim is willfully overstated or is without basis, such as the lack of an enforceable contract, then the lien claim is deemed forfeited. Further, the statute punishes a contractor who does not willfully remove a lien claim as long as notice is given. Any owner who is forced to file an action to remove an invalid lien claim is entitled to reasonable counsel fees and costs incurred in said action.

The next question concerns what is the appropriate process to remove an invalid lien claim. Once you have determined that a lien claim is invalid, whether residential or commercial, the first thing that should be done is that an appropriate notice should be provided to the contractor demanding that the lien claim be discharged. It is suggested that this be done via certified and regular mail and any other delivery alternatives which are available. Once this notice is given, typically a short period of time is given for the lien claim to be discharged. A typical period would be approximately two weeks. If the lien claim is not properly discharged, a Complaint may be filed with the Court in the county wherein the lien claim was filed. This process can be done in a summary fashion pursuant to Rule 4:67, and if successful, would entitle the property owner to counsel fees, costs, and potentially sanctions.

Due to the technical nature of the process involved in removing a lien claim, it is suggested that a property owner consult with an attorney. This attorney should know the appropriate form of the original notification, as well as the process of filing a Complaint to remove the lien claim should the contractor not properly discharge the invalid lien claim. The attorneys at Stark & Stark are equipped to handle such a matter if you have been wrongfully subjected to an invalid or improperly filed lien claim."

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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Tax Sale purchase? Caveat Emptor! Not as easy as it looks.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

Tax sale purchase is not a walk in the park!

Tax sales are a way for towns and cities to collect tax monies from third parties.  It works like this- property owner fails to pay real estate taxes.  Municipality offers to "sell the property" (actually a lien on the property) at auction.

New Jersey has a statutory framework surrounding tax sales.  The framework is designed to protect owners as well as tax sale purchasers.  While returns can be high, buying a tax sale is not for the faint of heart because it requires stick-to-it-ness to be successful.  For instance, in New Jersey, you must hold your tax sale certificate for two years before you can start a foreclosure action.

So, here's a story from the south where a tax sale purchaser bought a property that wasn't what he thought it was!    Read it here. The villa that turned out to be a sliver of land.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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Sales Tax on New Jersey Short Term Rentals

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

Sales Tax on New Jersey Short Term Rentals

New Jersey landlords, especially those down the Jersey Shore, are impacted by a sales tax on short term rentals.  New Jersey uses taxes to boost revenues, and the short term rental tax is just another tool in the taxman's box.

Here are two links you might (or might not) find helpful in understand which categories of owners are affected by the tax.

The first is from the CPA firm of Chris Whalen in Red Bank, New Jersey.  The second is from the State of New Jersey.

Tax Memo from Chris Whalen, CPA

New Jersey Tax Bulletin TB-81R.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

1500 Allaire Avenue, Suite 101
Ocean, NJ 07712

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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New Jersey Exit Tax is not really an exit tax. Think of it as a tax prepayment.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!
The below topic is something we deal with every day.  If you are a homebuyer, trust us to get it right.

**  From the blog of Untracht Early LLC.  A New Jersey based CPA firm.**

The New Jersey "Exit Tax" is not really an exit tax.

If you’ve recently been talking about moving around a former New Jersey resident, it’s likely you’ve heard something about the “exit tax” you’ll be required to pay as you move out of the state. As your conversation continues, you’ll likely hear stories of the price residents have paid to move, and how this forced them to reconsider moving. But what is this cost, and what do these stories all mean?

In actuality, the New Jersey “Exit Tax”, as it’s referred to, has been likened more to urban legend than fact by CPAs. The law requires sellers of New Jersey homes to pay the state tax in advance of moving, of either 8.97% of the profit on the sale of their home or 2% of the total selling price – whichever is higher.

The objective of the pre-payment is that no New Jersey residents can move out of the state without first paying taxes on the income from the sale of their home. At the end of the day, the New Jersey “Exit Tax” is simply misunderstood as an additional or special tax, instead of the pre-payment of potential income tax due that it really is.

The resulting question for many New Jersey taxpayers is, what happens if they don’t incur a profit on the sale of their home? The good news is that homeowners that incur a loss on the sale of their residence, and those who also pre-paid the tax before leaving the state, will be refunded the pre-payment when filing their NJ State Income Taxes.

Here’s some other information that may be pertinent to taxpayers who are concerned by the New Jersey “Exit Tax” estimated payment:

• Homeowners may be exempt under Internal Revenue Code Section 121, which makes gains on the sale of a home exempt from capital gains if the homeowner has used the home as their primary residence for 24 of the last 60 months (for married couples filing jointly, only one spouse must meet this requirement)
  • The exemption for these gains is up to $250,000 for single homeowners, $500,000 for those homeowners who are married filing jointly
    • Taxpayers are automatically disqualified if the home was acquired through a like-kind exchange or if they’re subject to expatriate tax
    • Taxpayers may qualify for a partial exclusion of gain if the reason for the sale of the home was a change in workplace location, a health issue, or an unforeseeable event
• The pre-payment for the selling of the residence should be recorded on the GIT/REP form

As time goes on, tax professionals hope that the New Jersey “Exit Tax” misnomer goes the way of other urban legends and becomes a footnote in taxpayers’ memories.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

1500 Allaire Avenue, Suite 101
Ocean, NJ 07712

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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Own a beachfront property in New Jersey? Read this.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

This is from our friend Larry Bell, Esq. at CATIC.

Public Trust Doctrine Is Now The Law In New Jersey

By the law of nature these things are common to all mankind – the air, running water, the sea, and consequently the shores of the sea. No one, therefore, is forbidden to approach the seashore, provided that he respects habitations, monuments, and the buildings, which are not, like the sea, subject only to the law of nations. From Book II of the Institutes of Justinian, Roman Emperor Justinian, circa 500 AD.

Dating back to Roman law, public rights to the seashore gave fishermen and travelers by sea unfettered access to dry land. Those public rights were maintained through the English Common Law and brought to America by the settlers of the original 13 colonies. A common law right, public access to the shore has developed in New Jersey through several court decisions, the first of which was the 1821 case of Arnold v. Mundy, 6 N.J.L. 1, where an owner of land adjoining the Raritan River claimed exclusive fishing rights to tidal oyster beds abutting his property. In that decision, the Court held that “[Common Property includes] ‘the air, the running water, the sea, the fish, and the wild beasts. [These are] things in which a sort of transient usufructuary possession only, can be had ....’” Unlike other public property, it was “ ... to be held, protected, and regulated for the common use and benefit.” Several other decisions and numerous regulations would follow as reviewed by the NJ Department of Environmental Protection.

On May 3, New Jersey Governor Phil Murphy made the Public Trust Doctrine the law of the state when he signed P.L. 2019, Chapter 81 into law with an effective date of July 1, 2019. It was a long time coming, but NJ now has a law that codifies the Public Trust Doctrine, intended to ensure public access to beaches and tidal areas, and promote, protect and safeguard public access rights. The new law affects both the 127 miles of NJ oceanfront beaches as well as the more than 1,200 miles of tidally influenced rivers and bays throughout the state.

The law supports the creation of new access points and the enhancement of existing ones, and is intended to provide the tools to defend against attempts to block access. It gives the NJ DEP broad regulatory power not only to create, enhance, and preserve public access, but also to ensure that there are necessary amenities in place to support it, including public parking and restrooms. The new law will have significant ramifications for landowners, municipalities, and developers, and will affect planning, zoning, and new construction in affected areas. It does not change the landscape, and standard title insurance exceptions for the rights of the public remain the same, but it is notable that some 1,500 years later Roman Emperor Justinian and Governor Phil Murphy wound up on the same page.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

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Homebuyer's protected by Notice of Settlement

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

Notice of Settlement protects buyers and lenders.

In New Jersey, the status of title and mortgages is officially established by the recording of documents in the County Clerk’s Office. For example, a home buyer will record his deed,  which then places a copy of the deed within the real property record books for that county. The original deed is then returned to the purchaser.

How to protect against fraudulent acts?

New Jersey law permits the recording of a document called a notice of settlement to show the world that an owner is about to sell or mortgage their property. Lenders will require borrowers (usually through their title companies) to file a notice of settlement prior to the loan closing. The notice of settlement will include the name and address of the borrower, an identification of the property and the name and address of the lender.

Thus, if a notice of settlement for Lender A is recorded on June 1, from that date forward, Lender B is considered to have notice of the borrower’s intention to take a loan from Lender A. The recording of the notice of settlement helps to establish priority of recorded documents and to advise interested parties of ongoing transactions with respect to a particular property.

A notice of settlement is effective for a period of 60 days from date of recording, which means that the deed or mortgage mentioned in the notice of settlement must be recorded during that time period in order to enjoy the protection of this procedure.  There is a renewal period.

A  professional title agent knows how to protect you!  Don't buy a home without title insurance.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004
or
1500 Allaire Avenue, Suite 101
Ocean, NJ 07712

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

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