SUBCHAPTER 6-x – ABANDONED TENANT PROPERTY

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SUBCHAPTER 6-x: ABANDONED TENANT PROPERTY
LT:6-x.1 Definitions
For purposes of this Subchapter:
“Personal property” means any tangible, movable property, including but not limited to
motor vehicles, and manufactured or mobile homes.
“Rent” means consideration paid by a tenant to a landlord for rental premises, but may
include additional expenses agreed to by the landlord and tenant that do not violate the law.
“Rental premises” means real property used or occupied by a tenant in accordance with a
lease and may include one or more rental units as well as areas to be used in common with other
tenants.
“Security deposit” means money deposited to secure the tenant’s performance under the
lease and to compensate or reimburse a landlord for any breach of the lease attributable to the
tenant, including non-payment of rent and physical damage to the rental premises.
Source: New.
LT:6-x.2. Landlord’s right to dispose of certain property left upon premises
a. A landlord who reasonably believes that a tenant left personal property at the rental
premises with no intention of asserting any further claim to the premises or the property, may
presume the property is abandoned by the tenant and dispose of the property in the manner
provided by this Subchapter, if:
(1) a warrant for removal has been executed and possession of the premises has
been restored to the landlord; or
(2) the tenant has given written notice of voluntary relinquishment of possession
of the premises; and
(3) notice is first given to the tenant, as required by section LT:6-x.3.
b. If a lease for nonresidential rental premises containing specific provisions for the
disposal of the tenant’s property is in effect, the landlord shall dispose of the tenant’s property in
accordance with that lease and not in accordance with this Subchapter.
Source: 2A:18-72.
LT:6-x.3. Notice requirements
Before disposing of the property, the landlord shall give written notice to the tenant
stating:
a. that the property is considered abandoned by the tenant and must be removed from the
rental premises, or the place where the property is stored in accordance with this chapter, by the
following dates: (i) in the case of any property other than a manufactured or mobile home, not
less than 30 days after delivery of the notice, or not less than 33 days after the date of mailing,
whichever comes first; or (ii) in the case of a manufactured or mobile home, not less than 75
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days after delivery of the notice, or not less than 78 days after the date of mailing, whichever
comes first; and
b. that property not removed by the dates provided may be: (i) sold at a public or private
sale; (ii) destroyed or otherwise disposed of if the landlord reasonably determines that the cost of
storage and conducting a public sale would probably exceed the amount of the proceeds of the
sale of the property; or (iii) separated by value and the valuable items sold, and the remainder
destroyed or otherwise disposed of by the landlord; and
c. that the landlord must make the property available without payment of any rent arrears
if the rental premises are residential and the tenant removes the property by the dates provided.
Source: 2A:18-74.
LT:6-x.4. Delivery of notice
a. The landlord shall send the required notice, addressed to the tenant, by registered or
certified mail, return receipt requested, or by commercial courier whose regular business is
delivery service, to the last known business or residence address of the tenant which may be the
address of the rental premises.
b. If the personal property subject to disposal is a manufactured or mobile home, a copy
of the notice shall also be sent in the same manner as in subsection (a) to the Chief Administrator
of the Motor Vehicles Commission and to any lienholders with security interests in the property
that have been recorded with the Motor Vehicles Commission.
Source: 2A:18-73.
LT:6-x.5. Storage; reasonable charges; reimbursement from tenant
a. After the notice is sent to the tenant, the landlord shall store all of the tenant’s personal
property in a safe and secure place on or off the rental premises, and shall exercise reasonable
care for the property, except that the landlord may promptly dispose of perishable food and allow
an animal control agency or humane society to remove any pets or livestock.
b. The tenant shall pay the landlord’s reasonable storage charges and costs incidental to
storage for the period the tenant’s personal property is in the landlord’s safekeeping. The
reasonable storage charges, including the cost of removal of the property to an offsite storage
facility, if applicable, shall not be greater than the fair market value of such costs in the locale of
the rental property. The actual charges of a commercial storage facility shall be deemed equal to
the fair market value for such charges.
c. A landlord shall not be responsible for any loss to a tenant resulting from storage of
property in compliance with this Subchapter unless the loss was caused by the landlord’s
deliberate or negligent act or omission.
Source: 2A:18-75; 2A:18-77.
LT:6-x.6. Tenant response; lienholder response; failure to act
After the notice required under this Subchapter is sent to the tenant, the tenant’s property
shall be conclusively presumed to be abandoned by the tenant unless:
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a. the tenant responds to the landlord within the time frame specified in the notice and
removes the property within that timeframe or within 15 days after a written response, whichever
is later; or
b. in the case of a manufactured or mobile home, a lienholder responds to the landlord, in
writing, regarding a security interest therein, indicating the intent either (i) to remove the
property or (ii) to pay rent as a condition of leaving the property, and does (i) or (ii) within the
time specified by the notice or within 15 days after the written response, whichever is later.
Source: 2A:18-76.
LT:6-x.7. Abandoned property; disposal
Property conclusively presumed to be abandoned in accordance with LT:6-x.6 shall be
disposed of by the landlord in any of the following ways:
a. at a public or private sale conducted in accordance with N.J.S.12A:9-601, et seq., the
Uniform Commercial Code;
b. by destruction or other disposal if the landlord reasonably determines that the cost of
storage and conducting a public sale would probably exceed the proceeds of the sale of the
property; or
c. by the sale of certain items and the destruction or other disposal of the remaining
property in accordance with subsections (a) and (b).
Source: 2A:18-78.
LT:6-x.8. Right of landlord; nonresidential property
Nothing in this Subchapter shall diminish the right of a landlord of a nonresidential
property to use distraint in accordance with Subchapter LT:3-x.
Source: 2A:18-79.
LT:6-x.9. Proceeds of sale; deductions by landlord
a. Within 30 days after a sale of the tenant’s property, the landlord shall return to the
tenant by personal delivery or commercial courier whose regular business is delivery service any
proceeds of sale, along with an itemized accounting, after deduction of the reasonable costs of
notice, storage and sale and any unpaid rent and charges not covered by the security deposit.
b. If the tenant, after diligent good faith effort, cannot be located, the remaining proceeds
shall be deposited into the Superior Court, and if not claimed within 10 years, shall be treated as
unclaimed property governed by 46:30B-1 et seq., the Uniform Unclaimed Property Act.
Source: 2A:18-80.
LT:6-x.10. Compliance in good faith; complete defense
Compliance in good faith with all the requirements of this Subchapter shall constitute a
complete defense in any action brought by a tenant against a landlord for loss or damage to
personal property disposed of pursuant to this Subchapter.
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Source: 2A:18-81.
LT:6-x.11. Tenant relieved of liability; landlord’s failure to comply
If a landlord fails to comply with this Subchapter, the tenant shall be relieved of any
liability for reimbursement to the landlord for storage and removal costs and shall be entitled to
recover up to twice the tenant’s actual damages.
Source: 2A:18-82.
LT:6-x.12. Application
This Subchapter shall not be applicable to:
a. unclaimed property which must be disposed of in accordance with N.J.S. 46:30B-1 et
seq., the Uniform Unclaimed Property Act;
b. abandoned motor vehicles;
c. personal property of the tenant that is expressly relinquished to the landlord, which
shall be disposed of in accordance with N.J.S. 46:30C-1 et seq., the Lost or Abandoned Property
Act.
Source: 2A:18-83; 2A:18-84.
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