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  • NJ A3345
  • Provides procedure to cancel mortgage of record by affidavit of entitled person under certain circumstances.
In Committee
Crossed Over
2016-2017 Regular Session
This bill provides an alternative to the current methods of canceling residential mortgages of record upon satisfaction, in order to provide relief to an entitled person, without requiring the expense of a court proceeding. An entitled person is defined to mean a person liable for payment or performance of the obligation secured by the real property described in a mortgage, the landowner, or any person with a recorded interest in the property. The bill allows an entitled person to use this alternative method in situations in which a mortgage has been paid in full, the mortgagee has not submitted the mortgage to be canceled of record as required pursuant to section 1 of P.L.1975, c.137 (C.46:18-11.2) and the later of: (1) at least 31 years since the date of the mortgage; or (2) at least one year since the maturity date of the mortgage, has elapsed. Under these circumstances, the bill allows an entitled person to submit for recording a discharge or satisfaction-piece, provided that the discharge or satisfaction-piece is accompanied by an affidavit setting forth these circumstances of payment. The county clerk or register of deeds and mortgages must accept the discharge or satisfaction-piece and affidavit for recording provided that the affidavit is substantially in the form set forth in the bill. The bill requires an entitled person to state in the affidavit the time of final payment of the mortgage and that the later of at least 31 years since the date of the mortgage, or at least one year since the maturity date of the mortgage, has elapsed. An entitled person is also required to state that the entitled person sent, by certified mail, a notice to the address designated for receipt of payment that the entitled person intended to discharge the mortgage by affidavit and that 31 days have elapsed since the date the notice was received, and that an entitled person made all reasonable efforts and exercised due diligence to identify and locate the correct mortgagee or servicer to send them the notice of intention to discharge, and that the entitled person has attached to the affidavit a copy of the notice. Finally, an entitled person must state that no written communication has been received from the mortgagee to dispute that the mortgage has been paid in full. The bill also provides that an entitled person who knowingly submits a false affidavit is guilty of a crime of the fourth degree.
Commerce, 2nd Reading in the Assembly, Financial Institutions and Insurance, Passed Assembly
Senate Commerce Hearing (19:00 12/4/2017 )  (on 12/4/2017)
Date Chamber Action Description
12/4/2017 Senate Commerce Hearing (19:00 12/4/2017 )
6/30/2016 S Received in the Senate, Referred to Senate Commerce Committee
6/27/2016 A Passed by the Assembly (65-10-2)
5/12/2016 A Reported out of Assembly Committee, 2nd Reading
5/12/2016 Assembly Financial Institutions and Insurance Hearing (10:00 5/12/2016 Committee Room 16, 4th Floor)
2/22/2016 A Introduced, Referred to Assembly Financial Institutions and Insurance Committee
Date Motion Yea Nay Other
Detail 6/27/2016 Assembly Floor: Third Reading - Final Passage 65 10 5
Detail 5/12/2016 Assembly Financial Institutions and Insurance Committee: Reported Favorably 10 2 1