P.L. 2011, Chapter 124, which was signed into law on September 14, 2011, takes effect immediately and also applies retroactively to sales, transfers and assignments made on or after August 1, 2007. It amends P.L. 2007, c. 100, § 5 (N.J.S.A. 54:50-38, “Bulk Sale Act”) by exempting from application of the Act, the transfer or assignment of “a simple dwelling house” if the seller, transferrer or assignor is an "individual," "estate," or "trust" as those terms are used for the purposes of the "New Jersey Gross Income Tax Act," N.J.S.A. 54A:1-1 et seq. By “individual” is meant "a single-person, married or civil union couple, spouse or civil union partner." The terms do not, however, include a seller, transferrer or assignor that is a business entity such as but not limited to a corporation, LLC or a partnership, nor to a sole proprietorship.
A "simple dwelling house" may include an attached or detached dwelling unit, but not more than a two-family building or structure, a unit of a horizontal property regime established pursuant to the "Horizontal Property Act," P.L.1963, c.168 (N.J.S.A. 46:8A-1 et seq.), a unit in a housing cooperative as defined under "The Cooperative Recording Act of New Jersey," P.L.1987, c.381 (N.J.S.A. 46:8D-1 et seq.), or a unit of a condominium property established pursuant to the "Condominium Act," P.L.1969, c.257 (N.J.S.A. 46:8B-1 et seq.), but does not include a structure or structures containing commercial property including, or in addition to, the units of dwelling space.
The sale, transfer or assignment of a seasonal rental unit, including a timeshare estate (as that term is defined by section 2 of P.L.2006, c. 63 (N.J.S.A. 45:15-16.51), of real property or lease of such a unit is also exempt from the application of the Bulk Sale Act if 1) the seller, transferrer or assignor is an "individual," "estate," or "trust" as described in the first paragraph above; and 2) the unit is used or rented for a term of not more than 125 consecutive days for residential purposes by a person having a permanent place of residence elsewhere.
The Bulk Sale Section is currently returning checks that are received by those parties who are now exempt from the Bulk Sale Act, with a letter clearing the seller, transferee or assignee and citing the law change to the original Act.
Any questions should be directed to the Bulk Sale Section at (609)292-6604.