In the case of property being redeemed, what happens to any rents collected?

When property is redeemed following a tax lien sale in New Jersey, any rents collected during the redemption period are retained by the municipality. This outcome is based on the principle that once a property is subject to a tax lien, the municipality has a vested interest in the property and any income generated from it, such as rents.

By keeping the rents, the municipality can offset any potential losses incurred due to the unpaid taxes. Additionally, these funds can be utilized to cover administrative costs or other expenses related to the management of the property during the redemption period.

In this context, it is important to understand that the former owner does not have any entitlement to these rents once the property is in a tax lien status, nor do lien holders or the tax collector have rights to these rents. The municipality has primary authority over all financial matters related to properties that are subject to tax liabilities until those obligations are satisfied.