On December 3, 2012, Governor Christie signed a new foreclosure law that becomes operative April 1, 2013. This Act (P.L. 2012, c.70) permits lenders to foreclose mortgages using an expedited summary action if the encumbered residential property is deemed to be abandoned and vacant.
NJ Statutes: Read more >>>
The laws governing Limited Liability Companies in New Jersey have recently been amended. Enacted as NJSA 42:2C-1 et seq., this law repeals the prior law (NJSA 42:2B-1 et seq.); it becomes effective March 18, 2013 but will apply only to newly created LLCs (i.e. those created on or after the effective date) or those LLCs which elect to be subject to the new act; it will apply to all Limited Liability Companies, regardless of date of formation on April 1, 2014.
Much of the new law is familiar. Limited Liability Companies will continue to be formed by the filing of a Certificate of Formation with the Division of Revenue in the Department of the Treasury. There is still no statutory requirement that a LLC have a written Operating Agreement and the law continues to recognize single-member LLCs.
What’s new? How does this affect real estate transactions? Under the amended law, LLCs may file a “Statement of Authority” (NJSA 42:2C-28). A Statement of Authority, when filed may state, among other things, the authority of any person holding a specified position within the company to transfer real property or otherwise bind the LLC. It may also set forth the authority of a specific person or persons to take such actions.
The amended law provides that an effective Statement of Authority that grants the authority to transfer real property held in the name of the LLC and is recorded by certified copy in the office for recording transfers of real property is “conclusive in favor of a person that gives value in reliance on the grant without knowledge to the contrary …” (NJSA 42:2C-28(f)). This means that a certified copy of a limited liability company’s Statement of Authority which is recorded among the land records is proof that the person(s) named in it have the authority to bind the LLC.
A recorded Statement of Authority may not be relied upon if:
- The Statement filed with the Division has been cancelled or restrictively amended and a certified copy of the cancellation or restrictive amendment has been recorded among the land records; or
- A limitation on the grant is contained in another Statement of Authority that became effective later and that later effective statement is recorded in the land records.
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The Cape May County Clerk and Camden County Clerk, and possibly the Burlington County Clerk will no longer record deeds coming out of FNMA (Fannie Mae) and FHLMC (Freddie Mac) with affidavits of realty transfer fee exemptions. Actual realty transfer fees must accompany such deeds in these counties for the foreseeable future regardless of exemption affidavits. There is developing litigation on this matter in U.S. District Federal Court. Read more here >>>
The NJ Treasury Department has issued a notice regarding Short Sales and Ancient Deeds, beginning May 1, 2012. Read more >>>
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The County Clerk’s Online Public Record Search Page contains further details. Click here >>>
Public Search System Registration requests: email@example.com
CFPB stands for the Consumer Financial Protection Bureau. Its stated mission is “to make markets for consumer financial products and services work for Americans.”
They have been rolling out new disclosure/GFE forms in certain test markets including Philadelphia and Austin.
County recorders in New Jersey will now be required to accept electronic documents.
Govenor Christie recently signed Assembly Bill A 2565 which modernizes the e-recording process, providing the mechanism for significantly changing the method we will follow to record real estate related documents in New Jersey. It significantly revises NJSA chapter 46 -the recording statute by repealing NJSA 46:15-1 and 16, plus a lot more. There will be forms that will be promulgatedby the State Division of Archives and Records Management ot effectuate these chages. The law will take affect later this Spring. Read more here >>>.
Updates will follow.
Notice to All:
Take note of the changeover of software vendors initiated by the Mercer County Clerk’s Office later this month. Please make certain that your document production software complies with the soon to be new parameters contained in the Notice linked here.
The Federal Housing Finance Agency (FHFA) recently announced changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their mortgage loan. As a result of FHFA’s announcement, Fannie Mae will be making the changes to Refi Plus™ (manual underwriting) and DU Refi Plus™
11/15/11 FHFA Announcement: Read more >>>
Check out this November 1st article from Washington Post:
4 million borrowers eligible for foreclosure review
By Brady Dennis
More than 4 million borrowers who have faced foreclosure since early 2009 will have the chance to have their cases reviewed for potential wrongdoing, federal regulators and some of the nation’s largest mortgage servicers announced Tuesday.