New Jersey law requires municipalities to hold at least one tax sale per year if properties within the municipality are delinquent in paying their property taxes and/or other municipal charges.
At the Tax Sale, the title to the delinquent property is not sold. Instead, a Tax Sale Certificate – a lien on the property – is sold. This offers the property owner an opportunity to pay back the lien over a specific period of time, rather than losing the property outright to foreclosure.
The taxpayer has two years from the date of the Tax Sale to redeem the lien by paying the full amount of the lien – including the delinquent taxes and charges, plus interest, penalties, and authorized fees and costs. If the lien is not redeemed by this time, the lien holder may exercise the right to start the foreclosure process.
Types of Tax Sales
1. Accelerated Tax Sale
Applies to the CURRENT year taxes and/or other municipal charges that remain owing and due after the statutory due date (November 10). The municipality will enforce the collection of those charges by offering the property for sale. This will cause a Tax Sale Certificate to be sold and filed against the property. The property will be subject to foreclosure proceedings if not redeemed within the stated two years from the date of the Tax Sale.
2. Standard Tax Sale
Applies to the PRIOR year taxes and/or other municipal charges that remain owing and due in the current year. The municipality will enforce the collection of those charges by offering the property for sale. This will cause a Tax Sale Certificate to be sold and filed against the property. The property will be subject to foreclosure proceedings if not redeemed within the stated two years from the date of the Tax Sale.