Bill Text: NJ S4094 | 2024-2025 | Regular Session | Introduced
Bill Title: Expands available protections against fraudulent recording of quitclaim deed.
Spectrum: Unknown
Status: (Introduced) 2025-02-03 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S4094 Detail]
Download: New_Jersey-2024-S4094-Introduced.html
Sponsored by:
Senator CARMEN F. AMATO, JR.
District 9 (Ocean)
SYNOPSIS
Expands available protections against fraudulent recording of quitclaim deed.
CURRENT VERSION OF TEXT
As introduced.
An Act expanding available protections against fraudulent recording of a quitclaim deed, amending and supplementing P.L.1968, c.49, and amending N.J.S.46:26A-6.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.1968, c.49 (C.46:15-6) is amended to read as follows:
2. In addition to other prerequisites for recording, no deed evidencing transfer of title to real property shall be recorded in the office of any county recording officer unless it satisfies the following requirements:
a. If the transfer is subject to any fee established under section 3 of P.L.1968, c.49 (C.46:15-7) or section 2 of P.L.2003, c.113 (C.46:15-7.1), a statement of the true consideration for the transfer shall be contained in the deed, the acknowledgment, the proof of the execution, or an appended affidavit by one of the parties to the deed or that party's legal representative.
b. If the transfer is exempt from any fee established under section 3 of P.L.1968, c.49 (C.46:15-7) or section 2 of P.L.2003, c.113 (C.46:15-7.1), an affidavit stating the basis for the exemption shall be appended to the deed.
c. If the transfer is of real property upon which there is new construction, the words "NEW CONSTRUCTION" in upper case lettering shall be printed clearly at the top of the first page of the deed, and an affidavit by the grantor stating that the transfer is of property upon which there is new construction shall be appended to the deed.
d. The county recording officer shall notify the transferor of the recording of a quitclaim deed if the transferor has submitted preferred contact information pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: P.L.2004, c.66, s.2)
2. N.J.S.46:26A-6 is amended to read as follows:
46:26A-6. Duty to record; recording officer's books, methods.
a. The county recording officer shall record any document or map affecting the title to real property located in the county, delivered for recording, provided the document:
(1) is in the form required by P.L.2011, c.217 (N.J.S.46:26A-1 et al.),
(2) appears to comply with requirements for recording specified in P.L.2011, c.217 (N.J.S.46:26A-1 et al.), and
(3) is accompanied by payment of any required fee and any state tax, if applicable, except that a State agency shall be afforded an opportunity to pay on a periodic basis on an account established with the county recording officer.
b. [Every] With the exception of a quitclaim deed for which the property owner has requested notification pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), every document or map shall be recorded and indexed not later than two business days after its receipt. If a property owner has requested to be notified of the recording of a quitclaim deed pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), then the county recording officer shall record the quitclaim deed no less than 10 business days, and not more than 12 business days after sending notification of the recording to the transferor pursuant to subsection d. of section 2 of P.L.1968, c.49 (C.46:15-6).
c. A document or map that is rejected shall be returned to the person who delivered it for recording with a statement of all grounds for its rejection within three business days after its receipt.
d. When a document is recorded, a book and page number or other permanent, unique document identifying number shall be assigned to the document.
e. Recording shall be done by a method that:
(1) produces a clear, accurate and permanent image of a document,
(2) allows the document to be found by use of the indexes maintained, and
(3) is authorized by R.S.47:1-5 and is in conformance with rules, standards and procedures promulgated by the Division of Archives and Records Management in the Department of State and approved by the State Records Committee pursuant to its authority under section 6 of P.L.1994, c.140 (C.47:1-12) and the "Destruction of Public Records Law (1953)," P.L.1953, c.410 (C.47:3-15 et seq.); provided, however, that the Division of Archives and Records Management and the State Records Committee shall establish rules, standards, and procedures for recording in conjunction and collaboration with the county recording officers.
f. For documents recorded before the effective date of P.L.2011, c.217 (N.J.S.46:26A-1 et al.), the recording office shall:
(1) retain the documents or clear, accurate and permanent images of the documents, and
(2) maintain indexes that allow the documents to be found.
g. The Division of Archives and Records Management and the State Records Committee shall consult with the Office of Telecommunications and Information Systems in the Department of the Treasury in the development of general technical standards for record keeping. Notwithstanding any general technical standards developed pursuant to this section, the State Records Committee may adopt rules and regulations to authorize pilot programs for various individual counties in order to evaluate alternative technologies for the preservation of records.
h. When a discharge, assignment, extension or postponement of a mortgage is recorded, the recording officer may make a marginal notation on the mortgage affected indicating the book and page number or document identifying number of the discharge, assignment, extension or postponement.
(cf: N.J.S.46:26A-6)
3. (New section) The county recording office shall allow a property owner to request notification of the recording of a quitclaim deed, pursuant to subsection d. of section 2 of P.L.1968, c.49 (C.46:15-6), by submitting information on the owner's preferred mailing address, or e-mail address, or both, through which to be notified. The county recording officer shall retain the contact information along with the deed for the associated property. The county recording office shall charge a property owner who submits a request pursuant to this section a fee in an amount sufficient to offset the county recording office's costs of administering P.L. , c. (C. ) (pending before the Legislature as this bill).
4. This act shall take effect on the first day of the third month next following enactment.
STATEMENT
This bill enhances protections against fraudulent recordings of quitclaim deeds by expressly authorizing a property owner to request notification and a delay in the recording, any time a quitclaim deed is submitted for recording on the owner's property. If a property owner submits this request, the bill requires the county recording officer (officer) to notify the property owner any time a person submits a request to record a quitclaim deed on the owner's property, and to wait to record the quitclaim deed until no less than 10 business days, and not more than 12 business days, have passed following the day when the officer sends the notification.
To facilitate the notification requirement, the bill directs the officer to accept and retain a submission from a property owner of the owner's preferred mailing address or e-mail address, or both. A "county recording officer" is also known as the "register of deeds and mortgages" in some counties, and the "county clerk" in the others. A "quitclaim deed" is a form of a deed through which a grantor makes no promises concerning the extent of the present ownership of the property at issue, and no future promises concerning the property at issue, but conveys whatever estate or interest the grantor purports to have in the real property at issue.
The bill allows the officer to collect a fee from property owners submitting notification requests to offset the cost of the notification requirement.
The bill takes effect on the first day of the third month next following enactment in order to allow recording offices to adjust fees.
