A few months ago, we discussed the Abandoned Property Act. See N.J.S.A. 2A:18–72, et. Therefore, a landlord cannot dispose of a tenant`s property until both of the following conditions are met: To the extent that the proceeds of a public sale of the tenant`s personal property are made, the landlord is entitled to recover from the proceeds the reasonable costs of termination, storage and sale, as well as all unpaid rents and expenses not covered by a deposit, to be deducted. Once these amounts are deducted, the landlord must transfer the remaining proceeds, if any, to the tenant with detailed accounting. In the event that the tenant cannot be located, the remaining product must be filed with the Supreme Court and, if not claimed within 10 years, handed over to the state. Corporate Responsibilities New Jersey businesses have a number of responsibilities regarding unclaimed property. First, written notice must be sent to the apparent owner of the unclaimed property, if known. If ownership is not claimed, companies have annual filing and reporting obligations to the state.
More importantly, once the applicable period expires, businesses are required to return all unclaimed real estate to the Crown, and penalties apply to businesses that do not meet any of these requirements. The Unclaimed Property Act is set forth in Title 46 of the Laws of New Jersey in N.J.S.A. 46:30B-1 et seq. and in the Administrative Code of New Jersey in N.J.A.C. 17:18 et seq. The purpose of this law is to give landlords an opportunity to “sleep at night” to dispose of abandoned rental properties. On occasion, this abandoned rental property may have a significant value, making it a food for future litigation. Therefore, every owner should certainly take advantage of the provisions of this law, but you should do so in a way that puts you in the most defensible position. This means that you should make a public sale.
“The Unclaimed Property Administration (UPA) recovers and records abandoned or lost intangible and tangible property. The purpose of the UPA is to return these assets to their rightful owner and/or heirs. New Jersey`s Unclaimed Property Act ensures that owners never give up the right to that property, and the UPA only acts as custodian until the property is returned. “2A:18–76. Conditions under which the property is deemed abandoned 5. has. If a tenant responds to the landlord in writing or orally on or before the date specified in the required notice that the tenant intends to remove the property from the premises or storage area, if the tenant has stored the property in accordance with section 4 of P.L. 1999, c. 340 (C.2A:18-75) and does not do so within the time specified in the notice or within 15 days after the written response, Based on the latter, it is conclusively presumed that the tenant`s property has been abandoned. b. If a secured creditor responds in writing to the landlord regarding a security interest in a manufactured or mobile home and the lien holder expresses an intention to remove the property from the premises or place of custody or to pay rent as a condition of leaving the property on the premises, but does not return it within the time specified in the notice or within 15 days of the written response, According to the latter, the owner can proceed as if the secured creditor had not responded.
c. If no response is received from a lessee or secured creditor within the time limit provided for in section 3 of P.L. 1999, c.340 (C.2A:18-74), the lessee`s property is deemed to have been surrendered. L.1999, c.340, p.5. The landlord has three options when it comes to disposing of the tenant`s personal property: Each state has an unclaimed real estate program that includes forgotten property of its residents such as uncashed checks, deposits, abandoned accounts, etc. “Unclaimed property” generally refers to tangible personal property (items in lockers) and intangible personal property (bank accounts, inventory and cheques). Eventually, the state takes over unclaimed property in a process known as “escheat.” The landlord must keep all of the tenant`s personal belongings in a safe place and exercise due diligence when handling the property. The landlord may dispose of perishable food and allow an animal control authority or humane society to transport abandoned animals. The landlord is entitled to reasonable storage charges and storage costs. If you follow the procedure established by law, any property that a tenant or lien holder leaves or for which he does not assume responsibility is considered “permanently abandoned”. When is the property considered abandoned? It is generally believed that New Jersey properties will be abandoned if they have not been claimed by the owner or if there has been no activity other than automatic activity for more than three years (the registration of interest in a bank account is considered an automatic activity).
Once unclaimed property has been transferred from a business to the Crown, the owner or heirs of the owner must claim it from the Crown. Note that the state does not take charge of the funds, but keeps them until they are used as custodians. There is no time limit to file a claim because New Jersey never takes possession of unclaimed funds. Funds are held by the state on a permanent basis until they are claimed by the owner or his representative. The law on abandoned property exists in the interest of the owner and the tenant. The tenant has an additional month to claim any items that may not have been claimed at the time the tenant moved (or locked out). For the landlord, the law on abandoned property provides for a date on which the landlord can dispose of the tenant`s property, supposedly without risk of further claims from the tenant. “Property that is conclusively believed to have been abandoned may be alienated in any of the following ways: Most readers of this article are familiar with New Jersey`s new law on property abandoned by tenants (N.J.S.A. 2A:18-72, et.
next.) Allows a landlord to dispose of a tenant`s abandoned and unclaimed property by “public or private sale”. (If you`re reading this and aren`t aware of this law, you`re missing out on an easy process for dealing with abandoned house titles, so this is a good opportunity for you to inquire.) Taking care of abandoned personal belongings is a necessary task for any owner. New Jersey`s Property Act includes a law that governs how landlords must deal with personal property left by the tenant, whether that tenant has voluntarily vacated the premises or been evicted from the premises. In particular, the law allows the landlord, upon proper notification of the tenant, to dispose of all personal belongings left on the premises.