A5071

An Act concerning sheriff sales, supplementing P.L.1995, c.244 (C.2A:50-53 et al.) and P.L.2009, c.296 (C.2A:50-69 et seq.), and revising various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. Except as provided in section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) or N.J.S.2A:17-36, and before any sheriff’s sale of a foreclosed residential property is made pursuant to P.L.1995, c.244 (C.2A:50-53 et al.), notice of the sheriff’s sale shall be given by posting a written notice of the time of sale and of the street address and the specific place at the street address where the sale shall be held, and describing the property to be sold, at least 20 days before the date of sale in one public place in the municipality where the property is to be sold, if the property is to be sold in a municipality, or, if not, then in one public place in the county seat of the county where the foreclosed residential property is to be sold, and publishing a copy once a week for three consecutive calendar weeks.

b. The first publication shall be at least 20 days before the date of the sale, in a newspaper of general circulation published in the municipality in which the foreclosed residential property is situated, if any part thereof is situated in a municipality, if not, then in a newspaper of general circulation published in the county in which the property or some part thereof is situated, or in case no newspaper of general circulation is published in the municipality or county, in a newspaper of general circulation published in the county in this State that is contiguous to the county in which the property or a part of the property is situated and has, by comparison with all similarly contiguous counties, the highest population based upon total county population as determined by the most recent federal decennial census.

c. A copy of the notice of sale shall also be posted in a conspicuous place on the property to be sold at least 20 days before the date of sale, where possible and where not restricted for any reason. If the property is a single-family residence the posting shall be on a door of the residence, but, if not possible or restricted, then the notice shall be posted in a conspicuous place on the property; however, if access is denied because a common entrance to the property is restricted by a guard gate or similar impediment, the property may be posted at that guard gate or similar impediment to any development community.

d. The notice of sale shall be recorded with the county recorder of the county in which the property or a part of the property is situated at least 20 days prior to the date of sale.

e. The notice of sale shall contain the name, street address in this State, which may reflect an agent of the sheriff, and either a toll-free telephone number or telephone number in this State of the sheriff, and the name of the original trustor, and also shall contain the statement required by subsection c. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). In addition to any other description of the property, the notice shall describe the property by giving its street address, if any, or other common designation, if any, and a county assessor’s parcel number; but if the property has no street address or other common designation, the notice shall contain a legal description of the property, the name and address of the beneficiary at whose request the sale is to be conducted, and a statement that directions may be obtained pursuant to a written request submitted to the beneficiary within 10 days from the first publication of the notice. Directions shall be deemed reasonably sufficient to locate the property if information as to the location of the property is given by reference to the direction and approximate distance from the nearest crossroads, frontage road, or access road. If a legal description or a county assessor’s parcel number and either a street address or another common designation of the property is given, the validity of the notice and the validity of the sale shall not be affected by the fact that the street address, other common designation, name and address of the beneficiary, or the directions obtained therefrom are erroneous or that the street address, other common designation, name and address of the beneficiary, or directions obtained therefrom are omitted.

f. The notice of sale shall contain a statement of the total amount of the unpaid balance of the obligation secured by the property to be sold and reasonably estimated costs, expenses, and advances at the time of the initial publication of the notice of sale. An inaccurate statement of this amount shall not affect the validity of any sale to a bona fide purchaser for value, and the failure to post the notice of sale on a door as provided by this subsection shall not affect the validity of any sale to a bona fide purchaser for value.

g. (1) On or after January 1, 2024, if the deed is secured by property containing from one to four single-family residences, the notice of sale shall contain substantially the following language, in addition to the language required pursuant to subsections e. and f. of this section:

NOTICE TO PROPERTY OWNER: The sale date shown on this notice of sale may be postponed one or more times by the mortgagee, or a court. The law requires that information about trustee sale postponements be made available to you and to the public, as a courtesy to those not present at the sale. If you wish to learn whether your sale date has been postponed, and, if applicable, the rescheduled time and date for the sale of this property, you may call the telephone number for information regarding the trustee’s sale (telephone number) or visit this Internet website (Internet website address for information regarding the sale of this property). Information about postponements that are very short in duration or that occur close in time to the scheduled sale may not immediately be reflected in the telephone information or on the Internet website. The best way to verify postponement information is to attend the scheduled sale.

NOTICE TO TENANT (IF APPLICABLE): You may have a right to purchase this property after the sheriff’s sale. If you are an eligible tenant buyer, you can purchase the property if you match the last and highest bid placed at the sheriff’s sale. There are three steps to exercising this right of purchase. First, 48 hours after the date of the sheriff’s sale, you may call the appropriate sheriff’s office for information regarding the sheriff’s sale, or visit the Internet website of the sheriff’s office to find the date on which the sheriff’s sale was held, the amount of the last and highest bid, and the address of the sheriff. Second, you are required to send a written notice of intent to place a bid so that the sheriff receives it no more than 15 days after the sheriff’s sale. Third, you are required to submit a bid so that the sheriff receives it no more than 45 days after the sheriff’s sale. If you think you may qualify as an eligible tenant buyer you should consider contacting an attorney or appropriate real estate professional immediately for advice regarding this potential right to purchase. This notice is not to be construed as providing legal advice.

(2) A mortgagee, beneficiary, sheriff, or authorized agent shall make a good faith effort to provide up-to-date information regarding sale dates and postponements to persons who request this information. This information shall be made available free of charge. It may be made available via an Internet website, a telephone recording that is accessible 24 hours a day, seven days a week, or through any other means that allows 24 hours a day, seven days a week, no-cost access to updated information. A disruption of any of these methods of providing sale date and postponement information to allow for reasonable maintenance or due to a service outage shall not be deemed to be a violation of the good faith standard.

(3) Except as provided in paragraph (2) of this subsection, nothing in the wording of the notice required by paragraph (1) of this subsection is intended to modify or create any substantive rights or obligations for any person providing, or specified in, either of the required notices. Failure to comply with paragraph (1) or (2) of this subsection shall not invalidate any sale that would otherwise be valid pursuant to P.L.1995, c.244 (C.2A:50-53 et al.).

(4) For purposes of a property subject to this subsection and of satisfying the requirements of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), the sheriff shall maintain an Internet website and a telephone number to provide information on applicable properties to persons who wish the information. In addition to any other information required by paragraph (2) of this subsection, the sheriff shall provide information regarding the sale date, amount of the last and highest bid, and the sheriff’s address. This information shall be made available free of charge and shall be available 24 hours a day, seven days a week.

h. For the purposes of this section, “eligible tenant buyer” means a natural person who at the time of the sheriff’s sale:

(1) is occupying the property as their primary residence;

(2) is occupying the property under a rental or lease agreement entered into prior to the commencement of a foreclosure action against a mortgagor; and

(3) is not the mortgagor or is not a spouse or family member of the mortgagor.

2. N.J.S.2A:17-36 is amended to read as follows:

2A:17-36. a. Adjournments of sale of real estate. Notwithstanding any other law or court rule to the contrary, a sheriff or other officer selling real estate by virtue of an execution may make five adjournments of the sale, two at the request of the lender, two at the request of the debtor, and one if both the lender and debtor agree to an adjournment, and no more, to any time, not exceeding 30 calendar days for each adjournment. However, a court of competent jurisdiction may, for cause, order further adjournments.

b. This section shall not apply to residential real estate containing four or fewer residential units.

(cf: P.L.2019, c.71, s.2)

3. (New section) a. All sheriff’s sales of residential property shall be held in the county where the property or a part of the property is situated, and shall be made at sale, to the highest bidder, between the hours of 9:00 a.m. and 5:00 p.m. on any business day, Monday through Friday.

(1) The sale shall commence at the time and location specified in the notice of sale. Any postponement shall be announced at the time and location specified in the notice of sale for commencement of the sale or pursuant to paragraph (1) of subsection c. of this section.

(2) If the sale of more than one parcel of property has been scheduled for the same time and location by the sheriff:

(a) any postponement of any of the sales shall be announced at the time published in the notice of sale;

(b) the first sale shall commence at the time published in the notice of sale or immediately after the announcement of any postponement; and

(3) Notwithstanding any other law, rule, or regulation to the contrary, a foreclosing property being sold shall be subject to the following restriction: a sheriff shall not bundle properties for the purpose of a sheriff’s sale and each property shall be bid on separately, unless the mortgage requires otherwise.

b. When the foreclosed property consists of several known lots, they shall be sold separately unless the mortgage provides otherwise. When apportion of the property is claimed by third person, who requires it to be sold separately, the portion subject to the claim shall be sold. The sheriff, if present at the sale may also, unless the mortgage otherwise provides, direct the order in which the property shall be sold, when the property consists of several known lots which may be sold to advantage separately, and the sheriff shall follow that direction. After sufficient property has been sold to satisfy the indebtedness, no more shall be sold.

c. (1) There may be a postponement or postponements of the sheriff’s sale, including a postponement upon instruction by the mortgagee to the sheriff that the sale proceedings be postponed, at any time prior to the completion of the sale for any period of time not to exceed a total of 365 days from the date set forth in the notice of sale. The sheriff shall postpone the sale in accordance with any of the following:

(a) upon the order of any court of competent jurisdiction;

(b) if stayed by operation of law;

(d) at the discretion of the sheriff.

(2) In the event that the sale is postponed for a period of time totaling more than 365 days, the scheduling of any further sale proceedings shall be preceded by giving a new notice of sale in the manner prescribed in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

d. The notice of each postponement and the reason for the postponement shall be given by public declaration by the sheriff at the time and place last appointed for sheriff’s sale. A public declaration of postponement shall also set forth the new date, time, and place of sale and the place of sale shall be the same place as originally fixed by the sheriff for the sale. The sale shall be conducted no sooner than on the seventh day after the earlier of:

(1) dismissal of the action; or

(2) expiration or termination of the injunction, restraining order, or stay that required postponement of the sale, whether by entry of an order by a court of competent jurisdiction, operation of law, or otherwise, unless the injunction, restraining order, or subsequent order expressly directs the conduct of the sale within that seven-day period. For the purpose of this paragraph, the seven-day period shall not include the day on which the action was dismissed, or the day on which the injunction, restraining order, or stay expires or is terminated. If the sale had been scheduled to occur, but this paragraph precludes its conduct during that seven-day period, a new notice of postponement shall be given if the sale had been scheduled to occur during that seven-day period. The sheriff shall maintain records of each postponement and the reason therefor.

e. Notwithstanding the time periods established under subsection d. of this section, if postponement of a sheriff’s sale is based on a stay imposed by Title 11 of the United States Code, the sale shall be conducted no sooner than the expiration of the stay imposed by that title and the seven-day provisions of subsection d. of this section shall not apply.

4. (New section) a. Each bid made by a bidder at a sheriff’s sale shall be deemed to be an irrevocable offer by that bidder to purchase the property being sold by the sheriff. Any second or subsequent bid by the same bidder or any other bidder for a higher amount shall be a cancellation of the prior bid.

b. At the sheriff’s sale the sheriff shall have the right:

(1) to require every bidder to show evidence of the bidder’s ability to deposit with the sheriff the full amount of the bidder’s final bid in cash, a cashier’s check drawn on a State or national bank, a check drawn by a State or federal credit union, or a check drawn by a State or federal savings and loan association, savings association, or a cash equivalent which has been designated in the notice of sale as acceptable to the sheriff prior to, and as a condition to, the recognizing of the bid, and to conditionally accept and hold these amounts for the duration of the sale; and

(2) to require the last and highest bidder to deposit, if not deposited previously, the full amount of the bidder’s final bid in cash, a cashier’s check drawn on a State or national bank, a check drawn by a State or federal credit union, or a check drawn by a State or federal savings and loan association, savings association, or a cash equivalent which has been designated in the notice of sale as acceptable to the sheriff, immediately prior to the completion of the sale, the completion of the sale.

c. (1) In the event the sheriff accepts a check drawn by a credit union or a savings and loan association pursuant to this subsection or a cash equivalent designated in the notice of sale, the sheriff may withhold the issuance of the deed to the successful bidder submitting the check drawn by a State or federal credit union or savings and loan association or the cash equivalent until funds become available to the payee or endorsee as a matter of right.

(2) For the purposes of this subsection, the sheriff’s sale shall be deemed final upon the acceptance of the last and highest bid, and shall be deemed perfected as of 8:00 a.m. on the actual date of sale if the deed is recorded within 18 calendar days after the sale, or the next business day following the 18th day if the county recorder in which the property is located is closed on the 18th day. If an eligible bidder submits a written notice of intent to bid pursuant to subsection c. of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), the sheriff’s sale shall be deemed perfected as of 8:00 a.m. on the actual date of sale if the deed is recorded within 48 calendar days after the sale or the next business day following the 48th day if the land records office in which the property is located is closed on the 48th day.

d. (1) If the sheriff has not required the last and highest bidder to deposit the cash, a cashier’s check drawn on a State or national bank, a check drawn by a State or federal credit union, or a check drawn by a State or federal savings and loan association, savings association, or a cash equivalent which has been designated in the notice of sale as acceptable to the sheriff in the manner set forth in paragraph (2) of subsection b. of this section, the sheriff shall complete the sale. If the last and highest bidder then fails to deliver to the sheriff, when demanded, the amount of the bidder’s final bid in cash, a cashier’s check drawn on a State or national bank, a check drawn by a State or federal credit union, or a check drawn by a State or federal savings and loan association, savings association, or a cash equivalent which has been designated in the notice of sale as acceptable to the sheriff, that bidder shall be liable to the sheriff for all damages which the sheriff may sustain by the refusal to deliver to the sheriff the amount of the final bid, including any court costs and reasonable attorneys’ fees.

(2) If the last and highest bidder willfully fails to deliver to the sheriff the amount of the bidder’s final bid in cash, a cashier’s check drawn on a State or national bank, a check drawn by a State or federal credit union, or a check drawn by a State or federal savings and loan association, savings association, or a cash equivalent which has been designated in the notice of sale as acceptable to the sheriff, or if the last and highest bidder cancels a cashier’s check drawn on a State or national bank, a check drawn by a State or federal credit union, a check drawn by a State or federal savings and loan association, savings association, or a cash equivalent that has been designated in the notice of sale as acceptable to the sheriff, that bidder shall be guilty of a disorderly persons offense punishable by a fine of not more than $1,000.

(3) In the event the last and highest bidder cancels an instrument submitted to the sheriff as a cash equivalent, the sheriff shall provide a new notice of sale in the manner set forth in section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) and shall be entitled to recover the costs of the new notice of sale.

e. Any postponement or discontinuance of the sale proceedings shall be a cancellation of the last bid.

f. Except as specifically provided in section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), in the even that this section conflicts with any other law, this section shall prevail.

g. It shall be unlawful for any person, acting alone or in concert with others, to:

(1) offer to accept or accept from another, any consideration of any type not to bid; or

(2) fix or restrain bidding in any manner, at a sale of property conducted pursuant to a power of sale in a deed of trust or mortgage. However, it shall not be unlawful for any person, including a sheriff, to state that a property subject to a recorded notice of default or subject to a sale conducted pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) is being sold in “as-is” condition.

Any person violating this subsection shall, upon conviction, be fined not more than $10,000 or imprisoned for not more than one year, or both

5. (New section) a. Nothing in this section shall prevent an eligible tenant buyer from being deemed a prospective owner-occupant if the eligible tenant buyer meets the conditions to be a prospective owner-occupant.

b. A sheriff’s sale of property shall not be deemed final until the earliest of the following:

(1) if a prospective owner-occupant is the last and highest bidder at the sheriff’s sale, the date upon which the conditions set forth in section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) for the sale to become final are met;

(2) 15 days after the sheriff’s sale, unless at least one eligible tenant buyer or eligible bidder submits to the sheriff either a bid pursuant to paragraphs (3) or (4) of this section or a nonbinding written notice of intent to place such a bid. The bid or written notice of intent to place a bid shall be sent to the sheriff by certified mail, overnight delivery, or other method that allows for confirmation of the delivery date and shall be received by the sheriff no later than 15 days after the sheriff’s sale;

(3) the date upon which a representative of all of the eligible tenant buyers submits to the sheriff a bid in an amount equal to the full amount of the last and highest bid at the sheriff’s sale, in the form of cash, a cashier’s check drawn on a State or national bank, a cashier’s check drawn by a State or federal credit union, a cashier’s check drawn by a State or federal savings and loan association, or savings association. This bid shall be accompanied by an affidavit stating that the persons represented are eligible tenant buyers as defined in this section. The sheriff shall reasonably rely on this affidavit. The bid and affidavit shall be sent to the sheriff by certified mail, overnight delivery, or other method that allows for confirmation of the delivery date and shall be received by the sheriff no later than 45 days after the sheriff’s sale. If this occurs, the eligible tenant buyers shall be deemed the last and highest bidder pursuant to the power of sale; or

(4) 45 days after the sheriff’s sale, except that during this 45-day period, an eligible bidder may submit to the sheriff a bid in an amount that exceeds the last and highest bid at the sheriff’s sale, in the form of cash, a cashier’s check drawn on a State or national bank, a cashier’s check drawn by a State or federal credit union, a cashier’s check drawn by a State or federal savings and loan association, or a savings association. The bid shall be accompanied by an affidavit stating that the bidder is an eligible bidder as defined pursuant to subsection f. of this section. The sheriff shall reasonably rely on this affidavit. The bid and affidavit shall be sent to the sheriff by certified mail, overnight delivery, or other method that allows for confirmation of the delivery date and shall be received by the sheriff no later than 45 days after the sheriff’s sale. As of 5:00 p.m. on the 45th day after the sheriff’s sale, if one or more eligible bidders have submitted a bid, the eligible bidder that submitted the highest bid shall be deemed the last and highest bidder. The sheriff shall return any losing bid to the eligible bidder that submitted it.

c. If the conditions set forth in subsection b. for a sale to be deemed final are not met, then:

(1) not later than 48 hours after the sheriff’s sale of property pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the sheriff shall post on the Internet website set forth on the notice of sale the following information:

(a) the date on which the sheriff’s sale took place;

(b) the amount of the last and highest bid at the sheriff’s sale; and

(c) an address at which the trustee can receive documents sent by United States mail and by a method of delivery providing for overnight delivery; and

(2) the information required to be posted on the Internet website pursuant to paragraph (1) of this subsection shall also be made available not later than 48 hours after the sheriff’s sale of property pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill)by calling the telephone number set forth on the notice of sale as required pursuant to paragraph (2) of subsection g. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill);

d. A prospective owner-occupant shall not be in violation of this section if compliance with the requirements of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) renders a prospective owner-occupant unable to occupy the property as the prospective owner-occupant’s primary residence within 60 days of the property deed being recorded.

e. The provisions of this section shall prevail over any conflicting provision of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

f. As used in this section:

“Eligible bidder” means:

(1) an eligible tenant buyer;

(2) a prospective owner-occupant;

(3) a nonprofit association, nonprofit corporation, or cooperative corporation in which an eligible tenant buyer or a prospective owner-occupant is a voting member or director;

(4) an eligible nonprofit corporation based in New Jersey whose primary activity is the development and preservation of affordable housing;

(5) a limited partnership in which the managing general partner is an eligible nonprofit corporation based in New Jersey whose primary activity is the development and preservation of affordable housing;

(6) a limited liability company in which the managing member is an eligible nonprofit corporation based in New Jersey whose primary activity is the development and preservation of affordable rental housing; or

(7) the State, a county, municipality, public authority, public agency, or any other political subdivision or public corporation in the State.

“Eligible tenant buyer” means a natural person who at the time of the sheriff’s sale:

(1) is occupying the property as the person’s primary residence;

(2) is occupying the property under a rental or lease agreement entered into prior to the commencement of a foreclosure action against a mortgagor; and

(3) is not the mortgagor or is not a spouse or family member of the mortgagor.

“Prospective owner-occupant” means a natural person who presents to the trustee an affidavit that the person:

(1) will occupy the property as the person’s primary residence within 60 days of the deed being recorded;

(2) will maintain occupancy of the property for at least one year;

(3) is not the mortgagor, or the child, spouse, or parent of the mortgagor; and

(4) is not acting as the agent of any other person or entity in purchasing the real property.

6. (New section) Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall relieve a person deemed the legal owner of real property when the property deed is recorded from complying with applicable law regarding the eviction or displacement of tenants.

7. (New section) a. A legal owner shall maintain vacant residential property purchased by that owner at a sheriff’s sale once that sale is deemed final. A municipality may impose a civil fine upon the legal owner of the property for a violation as set forth in this section.

b. If the municipality chooses to impose a fine pursuant to this section, it shall give the legal owner, prior to the imposition of the fine, a notice containing the following information:

(1) notice of the alleged violation, including a detailed description of the conditions that gave rise to the allegation;

(2) notice of the municipality’s intent to assess a civil fine if the legal owner does not do both of the following:

(a) within a period determined by the municipality, consisting of not less than 14 business days following the date of the notice, commence action to remedy the violation and notify the municipality of that action. This time period shall be extended by an additional 10 business days if requested by the legal owner in order to clarify with the municipality the actions necessary to remedy the violation; and

(b) complete the action described in subparagraph (a) of this paragraph within a period of no less than 16 business days following the end of the period set forth in subparagraph (a); and

(3) the notice required under this subsection shall be mailed to the address provided in the deed recording.

c. The municipality shall provide a period of not less than the time set forth in subsection b. of this section to remedy the violation prior to imposing a civil fine and shall allow for a hearing and opportunity to contest any fine imposed. In determining the amount of the fine, the governmental entity shall take into consideration any timely and good faith efforts by the legal owner to remedy the violation. The maximum civil fine authorized by this section for each day that the owner fails to maintain the property, commencing on the day following the expiration of the period to remedy the violation established by the governmental entity, shall be $1,500 dollars per day, to be collected by the municipality in a civil action by a summary proceeding under the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).

d. Fines and penalties collected pursuant to this section shall be directed to local nuisance abatement programs.

e. Subject to the provisions of this section, a municipality may establish different compliance periods for different conditions on the same property in the notice of alleged violation mailed to the legal owner.

f. The provisions of this section shall not preempt any local ordinance.

g. The provisions of this section shall only apply to residential real property.

h. For the purpose of this section, “failure to maintain” means failure to care for the exterior of the property, including, but not limited to, permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action to prevent trespassers or squatters from remaining on the property, or failing to take action to prevent mosquito larvae from growing in standing water or other conditions that create a public nuisance.

8. (New section) To cover the cost of implementing the required sheriff’s sale procedures pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), a sheriff’s office may establish fees necessary to cover the costs of P.L. , c. (C. ) (pending before the Legislature as this bill), to be charged to the successful bidder of a sheriff’s sale.

9. (New section) One year after the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the New Jersey Housing and Mortgage Finance Agency shall report, to the Governor and to the Legislature in accordance with section 2 of P.L.1991, c.164 (C.52:14-19.1), the number of first-time property owners that utilized P.L. , c. (C. ) (pending before the Legislature as this bill) to acquire a residential property.

10. Section 12 of P.L.1995, c.244 (C.2A:50-64) is repealed.

11. This act shall take effect on the 180th day next following enactment.

STATEMENT

This bill permits certain tenants to purchase residential property 45 days after successful submission of bid during a sheriff’s sale and includes new procedures for sheriff’s sales.

The bill requires a notice of sale to contain specified notices to the property owner in substantially prescribed language. The bill requires the notice of sale to contain a specified notice to a tenant regarding the tenant’s potential right to purchase a property containing from one to four single-family residences pursuant to a 45-day process established by the bill. In connection with these properties, the bill also requires sheriffs to maintain an Internet website and a telephone number to provide specified information on the properties that is free of charge and available 24 hours a day, seven days a week.

The bill requires sheriff’s sales to be held in the county where the property or some part of it is situated and to be made at auction, to the highest bidder, as specified. The bill provides that if the property consists of several lots or parcels, they are to be sold separately unless the mortgage provides otherwise. The bill also prohibits sheriffs from bundling properties for the purpose of sale, instead requiring each property to be bid on separately, unless the mortgage provides otherwise.

The bill provides certain requirements for bids made at a sheriff’s sale, authorizes a sheriff to require bidders at these sales to satisfy certain conditions, and specifies when a sheriff’s sale becomes final. Under the bill, an alternative process in connection with a sheriff’s sale of property will also be prescribed. In this process, if a prospective owner-occupant, as defined, is the last highest bidder, the date upon which specified conditions required of the bidder at the sheriff’s sale to become final are met. The bill requires the sheriff to require the prospective owner-occupant to provide certain information confirming the owner-occupant’s status. If a prospective owner occupant is not the last highest bidder, the bill would grant eligible tenant buyers, as defined, and other eligible bidders, as defined, certain rights and priorities to make bids on the property after the initial sheriff’s sale and potentially to purchase it as the last and highest bidder, subject to certain requirements and timelines. The bill prescribes duties for a sheriff in connection with this process that would be performed if an owner occupant is not the last highest bidder.

The bill additionally provides that specified provisions related to mortgages do not relieve a person who is deemed the legal owner of property when a deed is recorded from complying with applicable law regarding the eviction or displacement of tenants.

The bill also requires the owner of vacant residential property purchased at a sheriff’s sale to maintain that property. The bill authorizes a municipality to impose a civil fine of up to $1,500 for each day that the owner fails to maintain the property, subject to the owner being given notice and an opportunity to cure the violation, as specified. The bill requires the municipality to provide notice of intent to assess a civil fine if the legal owner does not commence action to remedy the violation, notify the municipality of that action, and complete the action within certain periods to be determined by the municipality, subject to specified minimum lengths of time.

Finally, the bill allows a sheriff’s office to establish any fees necessary to cover the costs of this bill, to be charged to the successful bidder of a sheriff’s sale. The bill also requires the New Jersey Housing and Mortgage Finance Agency to report, to the Governor and Legislature, the number of first-time property owners that utilized the bill to acquire a residential property.