1. Unreleased prior mortgages
A mortgage paid off years ago may still appear of record if the lender never recorded a discharge. Obtaining one from a lender that has merged or dissolved can take weeks. Ask sellers early whether every past mortgage was formally discharged.
2. Open municipal permits and missing certificates
Many New Jersey municipalities require a certificate of occupancy or continued-occupancy inspection at resale, and every residential sale requires a smoke detector, carbon monoxide alarm, and fire extinguisher compliance certificate. Open permits from a finished-basement or deck project can hold up the CO.
3. Estate property without a tax waiver
When a seller inherited the property, New Jersey inheritance tax waivers (or the self-executing Form L-9 for qualifying Class A beneficiaries) may be needed to clear the state’s lien. Executors also need letters testamentary. Start these conversations at listing.
4. Judgments against a party with a common name
Docketed judgments in the Superior Court attach to real property statewide. Common surnames produce “possible” hits that require affidavits or further review. Provide full legal names, middle initials, and prior addresses at order.
5. Survey and encroachment issues
A new survey may show a fence, shed, or driveway crossing a boundary. Lenders may require it resolved or insured over. Order the survey early rather than the week before closing.
6. Bulk sale notification
For sales of commercial property or residential property owned by an entity or held for investment, New Jersey’s bulk sale law may require the buyer to notify the Division of Taxation (Form C-9600) at least ten business days before closing. Missing it can make the buyer liable for the seller’s state tax debts.
7. Wire and payoff figure changes
Late payoff letters and last-minute figure changes ripple through the closing disclosure and can trigger a new three-business-day waiting period. Get payoff authorizations signed early and keep the lender informed of any credit changes.
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.
