Dorothy Secol, CLA
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Independent Paralegal Services for Attorneys



On June 10, 1999, Bill A. 161, P.O. Chapter 40, and codified as N.J.S.A. 46:18-11.5 to 46:18-11.7 became effective.  The bill was introduced by the New Jersey Land Title Association and enacted due to the problems of obtaining mortgage satisfactions from lenders.

The bill only applies to residential mortgages, including mortgages on 1 to 4 family residences and residential condominium units.  Further, in order to qualify the land secured by the mortgage must be owner-occupied or intended to be owner-occupied.

Other key provisions of the bill are:

1.  A discharge of mortgage may only be issued by a New Jersey attorney-at-law, or by a licensed title insurance producer, who in turn act as a statutory attorney in fact for the holder of the mortgage (mortgagee or assignee).  The attorney in fact must execute an affidavit, prepared substantially in accordance with the statutory form.  The discharge must state that it is executed by the attorney in fact in accordance with the above statutory citation.

2.  A condition of the discharge by the attorney in fact are two written demands for the satisfaction or discharge.

3.  Attached to the discharge must be a copy of the payoff letter and a photo copy of the front and back of the pay-off check, or proof of payment such as a bank wire.

A copy of the proposed affidavit is too lengthy to set forth in the newsletter, however, if you are interested in a copy of the affidavit, please contact us and we will be happy to see that you receive a copy.



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