Ordinance No. 18-05
Introduced: January 8, 2018
Public Hearing: January 22, 2018
An Ordinance of the Township of Vernon, County of Sussex, State of New Jersey Authorizing the Sale of Property Owned by the Township and Not Required for Public Purposes and More Commonly Known as Block 142.01, Lot 1
WHEREAS, the Local Lands and Buildings Law, N.J.S.A. 40A:12-13 authorizes the sale by municipalities of any real property, capital improvements or personal property or interests therein, not needed for public use by open public sale at auction to the highest bidder after the required newspaper advertisements; and
WHEREAS, the Township of Vernon (“Township”) is the owner of certain real property in the Township located at Block 142.01, Lot 1, and also known as 527 Main Street, Vernon, New Jersey 07462 (the “Property”); and
WHEREAS, the Property is not needed for public use, and the Township Council has determined that it is in the best interest of the Township to sell the Property; and
WHEREAS, the Township Council passed Resolution #18-35 authorizing a contract for real estate auction services with Max Spann Real Estate & Auction Co. (“Max Spann”); and
WHEREAS, it has been determined that it is in the best interest of the Township to have Max Spann conduct an auction for the Property on behalf of the Township; and
NOW, THEREFORE, BE IT ORDAINED by the Vernon Township Council that the Property shall be sold by public auction. The Property is being sold by Vernon Township “as is.”
BE IT FURTHER ORDAINED, that the Vernon Township Council hereby authorizes Max Spann to offer the Property for sale to the highest bidder by open public sale at auction.
BE IT FURTHER ORDAINED, that the following terms and conditions shall apply:
- The public sale shall be conducted by the auctioneer at the Municipal Building, 21 Church Street, Vernon, New Jersey as soon as the matter may be heard and publicly announced, provided the sale is not canceled.
- The public sale, if not canceled, shall take place by open public sale at auction to the highest bidder.
- The Property shall be sold for not less than $90,000.00.
- The Township shall have the right to remove the Property from the auction for any reason whatsoever until the time of the auction. Notice of such removal will be posted prior to the commencement of the auction.
- The Property shall be sold subject to 2018 taxes, pro-rated from the date of sale.
- The Township may at its discretion, reject a bid by or on behalf of or disqualify a successful bidder who:
- Owns or has more than a 10% ownership stake in any property located within the Township upon which there exists a tax arrearage of more than 2 quarters; or
- Owned or had more than a 10% ownership stake in any property located within the Township that was previously foreclosed upon; or
- Owns property located within the Township upon which there exists outstanding citations for zoning or building code violations.
- Potential Bidders are advised: (1) to conduct all necessary title searches prior to the date of the sale; (2) that the description of the Property is intended as a general guide only and may not be accurate; (3) no representations of any kind are made by the Township as to the condition of the Property which is being sold in its present conditions “as is”; (4) that the sale is made subject to all applicable laws, statutes, regulations, and ordinances of the United States, State of New Jersey, and the Vernon Township.
- At the conclusion of the auction, the successful bidder shall provide a deposit of 10% of the bid by certified check or money order and shall execute an Agreement of Sale. Said Agreement of Sale shall be binding upon the high bidder until such time that the municipal council either: (1) does not accept the bid in which case bidders’ deposits will be returned; or (2) accepts the bid whereupon the municipality shall execute the Agreement of Sale and both parties shall be held bound by the terms and conditions contained therein. The balance of the purchase price shall be paid at closing which shall occur not later than 60 days following the acceptance of the bid by the Township. The purchaser shall be entitled to possession immediately following closing of title.
- At closing of title, the successful bidder shall pay $500.00 to the Township to cover the Township’s transaction costs in preparing this ordinance and drafting closing documents. The successful bidder shall also pay a buyer’s premium in the amount of ten (10%) percent of the bid amount to Max Spann to conduct the sale.
- At closing of title, the successful bidder shall further be required to place a $25,000.00 cash escrow with the Township at the closing. The purchaser must obtain permits to begin work on the property and begin the work within one hundred eighty (180) days of the closing. In the event that permits are not obtained or work does not start within one hundred eighty (180) days of the closing, the funds in escrow shall be paid to the Township.
- In the event the Township is unable to convey clear and marketable title, insurable at regular rates by a title insurance company licensed to do business in the State of New Jersey, the Township will forthwith return to the purchaser any and all deposit moneys previously submitted by the purchaser, and neither party shall have any further rights against the other. The acceptance of a deed by the purchaser from the Township shall extinguish any claims that said purchaser may have against the Township in connection with the quality of title conveyed.
- The property herein sold is subject to existing encumbrances, liens, easements, zoning ordinances, other restrictions of record, such facts as an accurate survey would reveal and any present or future assessments for the construction of improvements benefiting said property. Neither the Township nor the Auctioneer make representations as to the presence or absence of wetlands or any other environmental conditions on the property and the purchaser assumes the risk of any such condition, all property being sold “as is.” There shall be no post-auction inspections.
- All conveyances by the Township shall be made by Bargain and Sale Deed with Covenants Against Grantor’s Acts.
- Acceptable bids shall be confirmed by resolution of the Municipal Council no later than the first regular meeting of the Municipal Council following the date of such sale.
- This Ordinance shall constitute and serve as the public notice to be published in a newspaper circulating in the Township at least once a week for two (2) consecutive weeks, the last publication being not earlier that seven (7) days prior to the date set forth for the public sale.
- In the event the successful bidder fails to close on the property, the bidder shall forfeit the ten percent (10%) deposit.
- The Township Council reserves the right to withdraw this offer to sell, or upon completion of the bidding to accept or reject any or all bids for said property or to waive any informality in relation thereto.
INCONSISTENCY: That all ordinances and parts of ordinances and conflicts that are inconsistent with this ordinance are hereby repealed but only to the extent of such conflict or inconsistency.
EFFECTIVE DATE: This Ordinance shall take effect upon final passage and publication as provided by law.