- July 03, 2019
- All New Jersey Issuing Offices
- UNDERWRITING - NJ REO Properties - Affordable Housing Restrictions
Please be advised that on June 24, 2019, the State of New Jersey enacted the following bill, P.L.2019, c.132, concerning affordability controls on affordable housing. In relation to real estate owned (REO) properties, this bill now states that a deed restriction on affordable housing is not extinguished because of a foreclosure on that property. Therefore, when reviewing county and chancery searches for REO properties, please note any affordable housing restrictions that are disclosed of record, and always include them as an exception in your title commitment. The seller will need to obtain a recordable release of the restriction in order to be removed as an exception.
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