Open Public Records Act (OPRA)
The Open Public Records Act (OPRA) which replaces NJ’s “Right to Know” gives anybody the ability to request public documents. This is useful for buyers since it allows them to do some preliminary due diligence prior to title work. Typically OPRAs are used to ensure all major work was permitted, confirm the permits have been closed out, and since permits are dated it gives the potential buyer an idea of how recently the work was done if the seller doesn’t know or can’t remember. Additional information such as if there are any tax liens on the property, easements or government-imposed deed restrictions, or assessments can also be found. I also suggest requesting the property’s zoning and current classification.
At the start of my career, I would go to the town and fill out an OPRA request as soon as my buyer’s offer was accepted. Since then, the National Association of Realtors has advised us to cease this practice as there had been issues nationwide where towns were providing inaccurate or incomplete information. I believe due to that fact alone, every buyer should either pull an OPRA or request their lawyer do it on their behalf. Most towns accept electronic OPRA requests and email you the findings, so there is no charge. For towns that insist on physical reports, the cost is minimal, around $2- $10.
Theoretically, a town is supposed to check its records and ensure all open permits are closed out before issuing a Continued Certificate of Occupancy (CCO). I remember standing in the building department of a Bergen County town that was known for blunders and significant staffing when a homeowner requested a CCO application. The secretary asked him for his address and then began to list a number of open permits that had not been closed out, telling him that he was financially responsible for them. He then questioned if she had the right address as he had only purchased the house two years prior and had never worked on any of the items she was listing. It turned out that the town had given the previous seller a CCO even though he had open permits, something the new owner could have learned by requesting an OPRA and having his lawyer insist the permits be closed prior to the sale.
Recently, I’ve heard about an increase in property classification issues (more on multi-family homes). For example, I know of a property that was very clearly built as a two-family house. The owner had passed away and the estate was being handled by extended family unfamiliar with the home but since it was clearly built as a two-family that is how it was priced and listed. While under contract, doing their due diligence, the title company found that the owner had appealed the taxes on the home stating that it was being used as a single-family residence. The town obliged but the property was reclassified as a single-family home in a multi-family zone. Additionally, some Northern valley towns have been phasing out multi-families for “conversions” which requires the owner to live in one of the units.
Of course, your lawyer will order title for the home you are looking to purchase and do a move extensive search with regards to taxes and all liens and/or deed restrictions but I personally believe it is best practice to learn as much about a property as you can prior to closing.
As a seller requesting an OPRA can be of assistance when filling out a seller’s disclosure form, especially if you have lived in a home for a while and can’t remember when you made updates. Additionally, if you had an oil tank removed, the town typically has that documentation as well.