NJ Green Card 4 Plex

[Francesco G.]

Hi guys,

Question regarding state  green card.  

I'm analyzing a property that is 3 apartments and 1 commercial space.  Owner occupied one unit, and daughter a second unit.  They are saying they didn't need a green card, even though its four units.  

Not sure if that is a legit reason to not have a green card.  I have three other fourplexes and they both require greencards.

Can anyone clarify this for me?

Thanks

[Francesco G.]

Originally posted by @Neil Schoepp:

@Francesco G. Unfortunately I do not have an answer for you, but rather a question. What is this green card you are talking about? I border Montague, NJ (Sussex County) and have some interest in buying properties in Newton, NJ. Any chance you could give a brief description or lead me in the best place to get more info.

 Hi Neil,

In NJ multifamily property are regulated by the state and require inspection and registration.  The inspection is every 5 years and when you pass, you get what's called a "Green Card".  It basically is a green registration card that shows you've passed your inspection and are good until the expiration date.  The state will contact you to inspect around the date of expiration.  2 Family properties are exempt.  3 Family and up must be registered (there are certain situations where a three family is exempt such as owners occupied house and certain income limitations).

You can find info here:

http://www.nj.gov/dca/divisions/codes/offices/bhi_...

Certificate of Inspection aka "Green Cards"
How do I get a Green Card– Certificate of Inspection?A Green Card is issued after the property is properly registered, inspections and reinspections have been conducted, all violations are corrected and all fees paid.

How long does it take to get a “Green Card”?Issuance of a Green Card depends on the stage of the enforcement process. The minimum time period is 4 months for the property to be inspected and reinspected, if necessary. The average time period could be extended depending on the following factors: the number of units or buildings to be inspected, the time taken for abatement of cited violations, whether or not the building has been registered properly with the Bureau and the required fees been paid.

If I want to sell my property or refinance my mortgage, do I need a “Green Card”?No you do not. The Bureau of Housing Inspection is not mandated by law to issue “Green Cards” for this purpose. When an owner contacts the Bureau of Housing Inspection requesting a Green Card, the Bureau will do whatever it can to conduct an inspection and/or issue a certificate of inspection. However, it is important to know that it was never the intention of the N.J. Legislature or the function of the Bureau to have inspections conducted for the purpose of completing real estate transactions. The Bureau is neither funded nor equipped to process inspections for properties being sold, nor can it allow inspections, requested for these properties, to delay the inspections of other properties, which have already been scheduled. The inspection of each hotel and multiple dwelling will be scheduled and conducted as soon as possible after the fifth anniversary date on which it had previously been inspected.