Redemption must occur in 2 years from date of purchase; if not redeemed, the municipality must pay the State in full within how many years including interest?

Redemption must occur in 2 years from date of purchase; if not redeemed, the municipality must pay the State in full within how many years including interest?

• A. 1 year
• B. 3 years
• C. 5 years
• D. 2 years

Answer: (B)

The key idea is what happens when redemption isn’t completed within the allowed period. In New Jersey, a property tax sale gives two years for redemption from the date of purchase. If that two-year window passes without redemption, the municipality must settle the full amount with the State, including any interest, within three years from the purchase date. The extra year exists to complete the transition of the unpaid balance to the State and to recover the funds with interest. So the required timeframe is three years.

The key idea is what happens when redemption isn’t completed within the allowed period. In New Jersey, a property tax sale gives two years for redemption from the date of purchase. If that two-year window passes without redemption, the municipality must settle the full amount with the State, including any interest, within three years from the purchase date. The extra year exists to complete the transition of the unpaid balance to the State and to recover the funds with interest. So the required timeframe is three years.