In today’s article we will discuss the importance of two different documents required by landlords of residential real estate.
possession certificate
The first document is the certificate of occupancy. Most municipalities in the state of New Jersey require that the landlord obtain a new certificate of occupancy every time a new tenant moves in. The inspections that accompany an application for a certificate of occupancy vary by municipality. All cities will check smoke detectors, and if there is gas heating, a carbon monoxide detector as well. Some towns will also conduct more in-depth tests in an effort to increase the quality of housing throughout the city. It should be noted that when a family grows by natural means (for example, the birth of a new child) the municipality no longer needs a new certificate of occupancy inspection.
While most landlords are vaguely aware of the penalty that the municipality can impose on them for failing to obtain a certificate of occupancy, only a few are aware of the more serious consequences that can result from such failure. Where occupancy certificate is required, renting a house without a certificate of occupancy is an illegal contract. Therefore, in the case of Khoudary v. Salem Board of Social Services, 260 NJS 79 (App. Div. 1992), the court determined that a landlord who rents without a certificate of occupancy has no right to sue for rent. is without authority.
In short, what the Chaudry Court said was that it would not help the landlord enforce an illegal contract. In the event that the tenant vacates the premises due for rent, either for earlier months or months which may be under the outstanding lease, the landlord may take no action to collect the rent, and its Also, cannot enforce any security of the tenant. Deposit towards these rents. The landlord may still take action or withhold protection for tortious damages, such as destruction of the apartment. It remains uncertain whether the court should allow the tenant to bring an action for the return of all rent previously paid under the invalid contract; However, most jurisdictions will rule that the tenant must pay for the quantum qualifying benefit of the use of the apartment.
For nearly a decade, the courts interpreted the decision in Khaudari to mean that failure to obtain a certificate of possession was a bar to eviction. However, the issue has since been clarified. In McQueen v. Brown & Cook, 342 NJS 120 (App Div. 2001), the court ruled that failure to obtain a certificate of occupancy rendered the contract void, yet the landlord had the right to evict the tenant. Retained. Essentially, the Court’s decision held that a tenant should not be able to benefit from an illegal contract, and furthermore, it was clear that it would be contrary to public policy to leave the tenant in an illegal rental.
Landlord Registration Details
While failure to obtain a certificate of occupancy is not a bar to eviction, failure to obtain landlord registration details (a/k/a landlord identification details) will prevent an eviction. All non-owner occupied residential dwellings in the state of New Jersey must be registered as a rental. Unlike a Certificate of Occupancy, the Registration Statement does not require an inspection and does not need to be repeated when new tenants move in. In most cases, a single registration statement will be effective forever.
In the event that the rental is a one or two family home, registration may be filed with the municipal clerk. In some cases, the municipality will charge a nominal fee for registration of the property and an additional fee on renewal. In the event that the property contains three or more residential dwellings, the property must be registered with the New Jersey Division of Community Affairs. The landlord registration details should mention the names of the owners and their emergency contact numbers.
Failure to comply with the registration requirement can have serious consequences for landlords. Most notably, NJSA 46:8-33 states that “no judgment for possession may be entered until compliance has been made. [with the Act]…” While the statute provides that the court may continue the case (up to 90 days) until the noncompliance is corrected, some landlords may be caught off guard. Some New Jersey counties The landlord is also required to produce proof of registration at the time of the tenancy hearing.
Another consequence of failure to obtain registration details is imposition of penalty. This firm has been hired to represent a number of landlords who have failed to obtain registration details. As with failure to obtain a certificate of occupancy, the fine for failure to register can be quite heavy, and cities will usually impose a separate fine for each person living within the building.
Lastly, it is best to ensure that you obtain both the occupancy certificate and landlord registration details before renting out your property. If you forget to file either of these two documents, you may find yourself subject to both substantial penalties from the municipality and civil action with your tenants.