RTL Partners, L.P. v. City of Camden

A-4927-96T2 (N.J. Super. App. Div. 1998) (Unpublished)
  • Opinion Date: October 22, 1998

TAX LIENS—Buyers of tax sale certificates who do not obtain a certification of municipal liens before purchase buy the certificates at their own risk.

A limited partnership acquired a block of tax sale certificates by assignment from a municipality. Thereafter, it learned of prior sewer charges assessed against the properties. When the partnership would not pay these charges, the municipality scheduled another sale. The partnership then sought to enjoin the sale, arguing that the charges were not included on the face of the tax sale certificates and were void because they were for periods predating the sale. The assignment contract specifically provided that “[t]he seller has provided the purchaser with certain information regarding tax liens… . Although utilized by the purchaser, such information was represented by the city as neither complete nor reliable.” The Court found that the partnership could have availed itself of a statutory procedure for certification of all outstanding municipal liens. Pursuant to this procedure, the municipality would have been bound by its certification of existing municipal liens. The partnership chose not to do so, and instead bought the certificates at its own risk.