The physical proximity of New Jersey and New York, and their closely intertwined economies, make it likely that New Jersey commercial real estate attorneys will occasionally be involved in some capacity with New York real estate transactions. When this occurs, New Jersey attorneys must be alert for the substantial differences between New Jersey and New York real estate law and practices. Nowhere are those differences more pronounced than in the handling of construction mortgages and construction liens.
New Jersey real property practice relies heavily on the state’s notice of settlement law. Formerly that law was found at N.J.S.A. 46:16A-1, et seq. However, it has just been repealed and significantly revamped by enactment of Assembly Bill 2565 , which adds Chapters 26A, 26B and 26C to Title 46. The principal focus of the new chapters is to provide a better system for electronic recording of documents. However, changes to the notice of settlement law are significant as well. These changes are scheduled to take effect on May 1, 2012.
