N.J. DCA Landlord/Tenant Information Series — (English)

Citation: N.J. DCA Landlord/Tenant Information Series — (English)
Jurisdiction: New Jersey (state)
Source: Official source
Original Source: https://www.nj.gov/dca/codes/publications/pdf_lti/t_i_r.pdf ↗

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If the property is sold or transferred it is the duty of the new owner to obtain the security
deposit, plus accrued interest on the tenant’s deposit, that was collected by the former owner.
Whether or not the deposit and interest are transferred, the new owner is responsible for the
investment of the security deposit, giving all notices and paying interest, and for the return of the
security deposit, plus any accrued earnings or interest (N.J.S.A. 46:8-21).
The Small Claims section of the Special Civil Part of the Superior Court, Law Division in
the county where the unit is located or in the county where the landlord resides has jurisdiction in
actions involving security deposits where the amount does not exceed $5,000, including any
applicable penalties, but not including court costs. For actions over $5,000 but not exceeding
$15,000, a person must file in the Special Civil Part of the Superior Court Law Division, New
Jersey Court Rule 6:11 (N.J.S.A. 46:8-21.4). There is no State agency that has jurisdiction over
security deposit disputes. All disputes must be settled through court action.
Any landlord who willfully and intentionally withholds a security deposit made by or on
behalf of a tenant who has received financial assistance through any State or federal program,
including welfare or rental assistance, may be penalized. The landlord may be liable for a civil
penalty of not less than $500 or not more than $2,000 for each offense. The penalty shall be
collected and enforced by summary proceedings pursuant to the Penalty Enforcement Law
(N.J.S.A. 2A:58-12). The State entity which made the deposits on behalf of the tenant will be
entitled to any penalty amounts recovered. A tenant receiving governmental financial assistance is
not required to file an action to