7 Things Investment Property Sellers Miss About New Jersey's Bulk Sale Notice
Who this is for: owners selling a building of three or more units, a mixed-use property, or any property held in an LLC or corporation in Bergen or Hudson County.
1. The notice is filed by the buyer, but it can stop your closing.
New Jersey's Bulk Sale Act requires Form C-9600, Notification of Sale, Transfer, or Assignment in Bulk, to reach the Division of Taxation at least 10 business days before closing. If it arrives late, everyone waits on the state.
2. Most homeowners are exempt. Many investors are not.
Since a 2018 change in the law, a one- or two-family home owned by individuals, an estate, or a trust is exempt. There is no owner-occupancy test, so a rented two-family you own in your own name is still exempt.
3. Your LLC changes the answer.
If title sits in an LLC, a corporation, or a partnership, the exemption does not apply, even on a two-family. Many small investors moved properties into LLCs years ago and forgot this.
4. Three units is the line.
A three-family or larger building needs the filing even if you own it personally.
5. The state can hold back part of your proceeds.
The Division responds within 10 business days of receiving the notice. If it finds unpaid state taxes or unfiled returns, it issues an escrow letter, and the buyer's attorney holds that money back from your proceeds until the state clears it. There is no fixed percentage.
6. The buyer has a reason to insist on it.
A buyer who skips the filing can be held responsible for the seller's state tax obligations. Expect the buyer's attorney to treat this as non-negotiable.
7. There is no filing fee, but there is a time cost.
The form itself is free. The cost is time. Raise it with your attorney the day the contract is signed, not the week of closing.
Thinking about selling an income property? Start with the seven-question seller assessment at https://quiz.sellecksellsnj.com/ or request a conversation at https://meet.sellecksellsnj.com
Scott Selleck, REALTOR, Broker Sales Associate | The Selleck Group | Keller Williams City Views Realty | 2200 Fletcher Avenue, Suite 502, Fort Lee, NJ 07024 | Cell 201-970-3960 | Licensed since 1993. This is general information, not legal or tax advice.
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