Legal Question in Real Estate Law in New Jersey

Statute? I can tell you that what you are saying is the way that I have always done it, and all attorneys that I have had dealings with in northern NJ. If taxes are going up sharply and there is enough money to make it worth while, I am sure you could hold back money from seller and/or buyer and calculate it to the penny after the tax bills go out. It has never been worth the effort (and several hundred dollars for extra atty fees) in all the closings I have done.

Yes, there is such a statute. It says that if a settlement is conducted in the second half of the year, the property tax for the first half of the year should be the basis to compute the presumed annual tax and from that, the pro-ration.