New Jersey § 40a:12-13

§ 40a:12-13.

Sales of real property, capital improvements or personal property; exceptions; procedure. Any county or municipality may sell any real property, capital improvement or personal

property, or interests therein, not needed for public use, as set forth in the resolution

or ordinance authorizing the sale, other than county or municipal lands, real property

otherwise dedicated or restricted pursuant to law, and, except as otherwise provided

by law, all such sales shall be made by one of the following methods: (a) By open public sale at auction to the highest bidder after advertisement thereof

in a newspaper circulating in the municipality or municipalities in which the lands

are situated, by two insertions at least once a week during two consecutive weeks,

the last publication to be not earlier than seven days prior to such sale. In the case of public sales, the governing body may by resolution fix a minimum

price or prices, with or without the reservation of the right to reject all bids where

the highest bid is not accepted. Notice of such reservation shall be included in the advertisement of the sale and

public notice thereof shall be given at the time of sale. Such resolution may provide, without fixing a minimum price, that upon the completion

of the bidding, the highest bid may be accepted or all the bids may be rejected. The invitation to bid may also impose restrictions on the use to be made of such

real property, capital improvement or personal property, and any conditions of sale

as to buildings or structures, or as to the type, size, or other specifications of

buildings or structures to be constructed thereon, or as to demolition, repair, or

reconstruction of buildings or structures, and the time within which such conditions

shall be operative, or any other conditions of sale, in like manner and to the same

extent as by any other vendor. Such conditions shall be included in the advertisement, as well as the nature of

the interest retained by the county or municipality. Such restrictions or conditions shall be related to a lawful public purpose and

encourage and promote fair and competitive bidding of the county or municipality and

shall not, in the case of a municipality, be inconsistent with or impose a special

or higher standard than any zoning ordinance or building, plumbing, electrical, or

similar code or ordinance then in effect in the municipality. In any case in which a county or municipality intends to retain an estate or interest

in any real property, capital improvement or personal property, in the nature of an

easement, contingent or reversionary, the invitation to bid and the advertisement

required herein shall require each bidder to submit one bid under each Option A and

Option B below. (1) Option A shall be for the real property, capital improvement or personal property

subject to the conditions or restrictions imposed, or interest or estate retained,

which the county or municipality proposes to retain or impose. (2) Option B shall be for the real property, capital improvement or personal property

to be sold free of all such restrictions, conditions, interests or estates on the

part of the county or municipality. The county or the municipality may elect or reject either or both options and the

highest bid for each. Such acceptance or rejection shall be made not later than at the second regular

meeting of the governing body following the sale, and, if the governing body shall

not so accept such highest bid, or reject all bids, said bids shall be deemed to have

been rejected. Any such sale may be adjourned at the time advertised for not more than one week

without readvertising. (b) At private sale, when authorized by resolution, in the case of a county, or by

ordinance, in the case of a municipality, in the following cases: (1) A sale to any political subdivision, agency, department, commission, board or

body corporate and politic of the State of New Jersey or to an interstate agency or

body of which the State of New Jersey is a member or to the United States of America

or any department or agency thereof. (2) A sale to a person submitting a bid pursuant to subsection (a) of this section,

where all bids have been rejected, provided that the terms and price agreed to shall

in no event be less than the highest bid rejected, and provided further that the terms

and conditions of sale shall remain identical. (3) A sale by any county or municipality, when it has or shall have conveyed its right,

title and interest in any real property, capital improvement or personal property

not needed for public use, and it was assumed and intended that there should be conveyed

a good and sufficient title in fee simple to said real property, capital improvement

or personal property, free of all encumbrances and the full consideration has been

paid therefor, and it shall thereafter appear that the title conveyed was insufficient

or that said county or municipality at the time of said conveyance was not the owner

of some estate or interest in said real property, capital improvement or personal

property or of some encumbrances thereon, and the county or municipality shall thereafter

acquire a good and sufficient title in fee simple, free of all encumbrances of said

real property, capital improvement or personal property or shall acquire such outstanding

estate or interest therein or outstanding encumbrance thereon and said county or municipality,

by resolution of the governing body and without the payment of any additional consideration,

has deemed to convey or otherwise transfer to said purchaser, his heirs or assigns,

such after-acquired title, or estate or interest in, or encumbrance upon, such real

property, capital improvement or personal property to perfect the title or interest

previously conveyed. (4) A sale of an easement upon any real property previously conveyed by any county

or municipality may be made when the governing body of any county, by resolution,

or any municipality, by ordinance, has elected to release the public rights in the

nature of easements, in, on, over or under any real property within the county or

the municipality, as the case may be, upon such terms as shall be agreed upon with

the owner of such lands, if the use of such rights is no longer desirable, necessary

or required for public purposes. (5) A sale to the owner of the real property contiguous to the real property being

sold; provided that the property being sold is less than the minimum size required

for development under the municipal zoning ordinance and is without any capital improvement

thereon; except that when there is more than one owner with real property contiguous

thereto, said property shall be sold to the highest bidder from among all such owners. Any such sale shall be for not less than the fair market value of said real property. When there is only one owner with real property contiguous to the property being

sold, and the property is less than an eighth of the minimum size required for development

under the municipal zoning ordinance and is without any capital improvement thereon,

the fair market value of that property may be determined by negotiation between the

local unit and the owner of the contiguous real property. The negotiated sum shall be subject to approval by resolution of the governing body,

but in no case shall that sum be less than one dollar. In the case of any sale of real property hereafter made pursuant to subsection (b)

of this section, in no event shall the price agreed upon with the owner be less than

the difference between the highest bid accepted for the real property subject to easements

(Option A) and the highest bid rejected for the real property not subject to easements

(Option B). After the adoption of the resolution or ordinance, and compliance by the owner of

said real property with the terms thereof, said real property shall be free, and entirely

discharged of and from such rights of the public and of the county or municipality,

as the case may be, but no such release shall affect the right of lawful occupancy

or use of any such real property by any municipal or private utility to occupy or

use any such real property lawfully occupied or used by it. A list of the property so authorized to be sold, pursuant to subsection (b) of this

section, together with the minimum prices, respectively, as determined by the governing

body, shall be included in the resolution or ordinance authorizing the sale, and said

list shall be posted on the bulletin board or other conspicuous space in the building

which the governing body usually holds its regular meetings, and advertisement thereof

made in a newspaper circulating in the municipality or municipalities in which the

real property, capital improvement or personal property is situated, within five days

following enactment of said resolution or ordinance. Offers for any or all properties so listed may thereafter be made to the governing

body or its designee for a period of 20 days following the advertisement herein required,

at not less than said minimum prices, by any prospective purchaser, real estate broker,

or other authorized representative. In any such case, the governing body may reconsider its resolution or ordinance,

not later than 30 days after its enactment, and advertise the real property, capital

improvement, or personal property in question for public sale pursuant to subsection

(a) of this section. Any county or municipality selling any real property, capital improvement or personal

property pursuant to subsection (b) of this section shall file with the Director of

the Division of Local Government Services in the Department of Community Affairs,

sworn affidavits verifying the publication of advertisements as required by this subsection. (c) By private sale of a municipality in the following case: A sale to a private

developer by a municipality, when acting in accordance with the “Local Redevelopment

and Housing Law,” P.L.1992, c. 79 ( C.40A:12A-1 et al.). (d) A county or municipality is also authorized to use electronic procurement practices

in accordance with the provisions of P.L.2018, c. 156 ( C.40A:11-4.7 et al.) for the sale or lease of real property pursuant to the “Local Lands and Buildings

Law,” P.L.1971, c. 199 ( C.40A:12-1 et seq. ). All sales, either public or private, may be made for cash or upon credit. A deposit not exceeding 10% of the minimum price or value of the property to be

sold may be required of all bidders. When made upon credit, the county or municipality may accept a purchase-money mortgage,

upon terms and conditions which shall be fixed by the resolution of the governing

body; provided, however, that such mortgage shall be fully payable within five years

from the date of the sale and shall bear interest at a rate equal to that authorized

under Title 31 of the Revised Statutes, as amended and supplemented, and the regulations

issued pursuant thereto, or the rate last paid by the county or municipality upon

any issue of notes pursuant to the “Local Bond Law” ( N.J.S.40A:2-1 et seq. ), whichever is higher. The governing body may, by resolution, fix the time for closing of title and payment

of the consideration. In all sales made pursuant to this section, the governing body of any county or municipality

may provide for the payment of a commission to any real estate broker, or authorized

representative other than the purchaser actually consummating such sale; provided,

however, that no commission shall be paid unless notice of the governing body's intention

to pay such a commission shall have been included in the advertisement of sale and

the recipient thereof shall have filed an affidavit with the governing body stating

that said recipient is not the purchaser. Said commissions shall not exceed, in the aggregate, 5% of the sale price, and be

paid, where there has been a public sale, only in the event that the sum of the commission

and the highest bid price does not exceed the next highest bid price (exclusive of

any real estate broker's commission). As used in this section, “ purchaser ” shall mean and include any person, corporation, company, association, society, firm,

partnership, or other business entity owning or controlling, directly or indirectly,

more than 10% of the purchasing entity.