Property Ownership
In NJ, a 'tax sale certificate' (TSC) is issued when:
AA property is sold at a profit
BA municipality holds a tax sale for unpaid property taxes and the certificate is purchased by a third party or the municipality✓ Correct
CA new property is assessed for the first time
DThe state acquires property through eminent domain
Explanation
When NJ property taxes go unpaid, the municipality holds an annual tax sale. The TSC is purchased by the lien buyer (investor or municipality), who can eventually foreclose to take title if the delinquency is not redeemed.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Math Concepts
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