N.J. Admin. Code § 3:18-5.5

Current through Register Vol. 56, No. 21, November 4, 2024

Section 3:18-5.5 - Recording of foreclosure consultant contracts

(a) The foreclosure consultant business licensee shall record all foreclosure consultant contracts in accordance with 46:26A-1 et seq. and with the clerk of the county in which the distressed property is located, within 10 business days of its execution.

1. For purposes of this section, the term "county clerk" shall also refer to the Register of Deeds and Mortgages in counties in which instruments affecting real property are recorded with such officials.

(b) Foreclosure consultant contracts shall be in recordable form with the signatures of all parties acknowledged in accordance with 46:26A-1 et seq. In addition to all the information required by 3:18-5.4, all such contracts shall include, at a minimum, information specifying the taxing municipality and tax block and lot number and the street address of the distressed property with respect to which the foreclosure consultant will provide any distressed property service, the start date of the contract, the expiration date of the contract, and a statement identifying who has prepared the contract. The names of all signatories shall be typed under all signatures.

(c) Foreclosure consultant contracts shall be for a specified term prominently identified on the face of the contract. The initial contract term shall be for a period not to exceed 18 months. The contract shall clearly state that, upon the expiration date set forth in the contract, the contract shall become void unless the term is extended by mutual agreement of the parties. The contract shall also provide that the term of the contract may be extended by mutual agreement of the parties to a date certain not to exceed 180 days from the original expiration date or any prior extended date. All such extensions shall be memorialized in a recordable document evidencing the extension which shall be filed by the foreclosure consultant for recording with the county clerk within 10 days of its being signed by the distressed property owner.

(d) In the event the contract is cancelled by the distressed property owner during its term, the foreclosure consultant shall file with the county clerk a notice of the cancellation of the previously recorded foreclosure consultant contract and attach to it a copy of the distressed property owner's notice of cancellation of the contract. The notice of cancellation shall be in recordable form with all signatures acknowledged in accordance with 46:26A-1 et seq. and shall be filed with the county clerk within 10 days of the foreclosure consultant's receipt of the distressed property owner's written notice of cancellation in accordance with 46:10B-57. The notice of cancellation shall include information specifying the taxing municipality and tax block and lot number and the street address of the distressed property with respect to which the foreclosure consultant contracted to provide any distressed property service, and the date of the cancellation of the contract. The names of all signatories shall be typed under all signatures.

(e) In the event the foreclosure consultant contract is fully performed by the foreclosure consultant, and no distressed property conveyance or distressed property conditional conveyance has been contracted for by the distressed property owner, the foreclosure consultant shall, within 10 days of collecting any compensation for the services provided to the distressed property owner under the terms of the foreclosure consultant contract, file with the county clerk a notice discharging of record the previously recorded foreclosure consultant contract. Such notice of discharge shall be signed by both the foreclosure consultant and the distressed property owner and shall be in recordable form with all signatures acknowledged as prescribed by 46:26A-3.

(f) In the event the foreclosure consultant contract is fully performed and the distressed property owner has contracted to sell the property through a distressed property conveyance or a distressed property conditional conveyance, the foreclosure consultant shall either file a notice discharging of record the foreclosure consultant contract recorded with the county clerk prior to any closing on the distressed property conveyance or distressed property conditional conveyance, or deliver to the distressed property owner or his or her attorney or settlement agent such a notice of discharge signed by the foreclosure consultant, with the signature properly acknowledged, at or prior to the closing on the distressed property conveyance or distressed property conditional conveyance transaction.

(g) In the event a foreclosure consultant contract is fully performed by both parties and the foreclosure consultant has not filed or delivered to the distressed property owner, his or her agent, or his or her attorney a notice of discharge as set forth in (f) above, the owner may file a notice discharging the foreclosure consultant contract of record. The owner-filed notice of discharge shall be accompanied by a certification stating that the foreclosure consultant contract has been fully performed and, despite the distressed property owner's best efforts, the foreclosure consultant has failed to file a notice of discharge of the previously recorded foreclosure consultant contract.

N.J. Admin. Code § 3:18-5.5