Establishes homestead exemption against forced sale for certain persons in debt.

S4234

SENATE, No. 4234

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 14, 2026

Sponsored by:

Senator� BENJIE E. WIMBERLY

District 35 (Bergen and Passaic)

SYNOPSIS

���� Establishes homestead exemption against forced sale
for certain persons in debt.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning certain exemptions from debt
execution and supplementing Title 2A of the New Jersey Statutes

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �Condominium� means the same
as defined pursuant to section 3 of the �Condominium Act,� P.L.1969, c.257
(C.46:8B-3).

���� �Dwelling house� means any
residential property assessed as real property, but the term shall not include
a unit in a condominium or a horizontal property regime.

���� �Homestead� means any of the
following if it is the principal residence of the owner or the owners� family
members:

���� (1)�� a dwelling house and the
land on which that dwelling house is located;

���� (2)�� a condominium unit or a
unit in a horizontal property regime; or

���� (3)�� a manufactured home as
defined pursuant to section 2 of P.L.1990, c.61 (C.54:4-8.58), including the
land on which the manufactured home is situated.

���� Notwithstanding section 2 of
P.L.1990, c.61 (C.54:4-8.58), manufactured homes constructed before 1974 shall
be included in the definition of homestead even if they were not manufactured
in accordance with the National Manufactured Housing Construction and Safety
Standards Act of 1974.�

���� �Horizontal property regime�
means the form of real property ownership provided for under the �Horizontal
Property Act,� P.L.1963, c.168 (C.46:8A-1 et seq.).

���� �Owner� means, but is not
limited to, a natural person who is a sole owner, joint tenant, tenant by the
entirety, tenant in common, life estate holder, a holder of a beneficial
interest in a trust, a purchaser under a deed of trust, mortgage, or contract,
or a holder of a remainder interest.

���� �Principal residence� means a
homestead occupied by the owner or a member of the owner�s immediate family as
the owner's or family�s primary residence, as distinguished from a vacation
home, property owned and rented or offered for rent by the owner, and other
secondary real property holdings.

���� 2.��� a.� Any owner may exempt
an interest in a homestead from attachment, execution, and forced sale issued
on judgments obtained in any court of record in this State except for the
Superior Court, Law Division, Criminal Part, up to an amount of $250,000, or
$500,000 if the owner is married.� The amount that an owner may exempt pursuant
to this subsection shall be based upon the equity value of the homestead.

���� b.��� An owner who is entitled
to a homestead exemption shall hold that exemption by operation of law and no
written claim or recording shall be required.

���� 3.��� a.� A homestead
exemption may be abandoned by a:

���� (1)�� declaration of
abandonment or waiver;

���� (2)�� transfer of the
homestead property by deed of conveyance; or

���� (3)�� permanent removal of the
owner as a resident of this State.�

���� b.��� A declaration of
abandonment or waiver pursuant to paragraph (1) of subsection a. of this
section shall be executed by the owner and acknowledged.� A declaration of
abandonment or waiver is effective from the time of its recording in the office
of the county clerk.

���� 4.��� This act shall take
effect on January 1, 2027.

STATEMENT

���� This bill establishes a
homestead exemption against forced sale for certain persons in debt.

���� Under the bill, any owner of a
homestead may exempt an interest in the homestead from attachment, execution,
and forced sale issued on judgments obtained in any court of record in this
State except for the Superior Court, Law Division, Criminal Part, up to an
amount of $250,000, or $500,000 if the owner is married.� The amount that an
owner may exempt will be based upon the equity value of the homestead. An owner
who is entitled to a homestead exemption will hold that exemption by operation
of law and no written claim or recording will be required.

���� The bill additionally provides
that a homestead exemption may be abandoned by a:

���� (1)�� declaration of
abandonment or waiver;

���� (2)�� transfer of the
homestead property by deed of conveyance; or

���� (3)�� permanent removal of the
owner as a resident of this State.�

���� A declaration of abandonment
or waiver will be executed by the owner and acknowledged.� A declaration of
abandonment or waiver is effective from the time of its recording in the office
of the county clerk.