What the law covers
New Jersey’s Bulk Sale Act requires a buyer to notify the Division of Taxation when acquiring business assets outside the ordinary course of business. Real property held for investment or rental—an apartment building, a commercial condo, a rented single-family house owned by an LLC—generally qualifies as a business asset.
The residential exception
A sale of a one- or two-family residential property by an individual, estate, or trust that is the seller’s residence (or that is not used as a business) is generally exempt. The exemption does not extend to entity sellers or investor-owned rentals.
Form C-9600 and the ten-day rule
The buyer (or its attorney) files Form C-9600 with the executed contract at least ten business days before closing. The Division responds with a clearance or a letter specifying an escrow amount to be held from the seller’s proceeds until the seller’s state tax obligations are resolved.
What happens if you skip it
A buyer who closes without notifying the Division may be held personally liable for the seller’s unpaid New Jersey taxes. Title agencies will typically require evidence of the filing or an escrow before disbursing.
Timeline planning
Because the ten-day period is measured from the Division’s receipt of a complete filing, agents on investor deals should build at least three weeks between contract and closing. Send the title agency and counsel the seller’s entity information at order.
Practical checklist
Identify whether the seller is an entity or the property is rented; have counsel file C-9600 promptly; expect a possible escrow; and build the timeline accordingly.
This article is general information about New Jersey real estate transactions and is not legal, tax, or financial advice. Laws, regulations, and fee schedules change; confirm current requirements with your attorney. Crystal Alliance Title is a title insurance agency, not a law firm.
