NJ S508

Dealers must pay off the remaining loan balance on a customer's trade-in vehicle within 15 days of taking possession, with penalties of up to $1,000 for the first violation and $2,000 for subsequent violations.

Secured parties (lienholders) must release the vehicle title within 15 days of receiving payment, or within 15 days of funds being credited to their account for non-certified checks.

Secured parties who fail to release titles on time face civil penalties of up to $500 for the first offense and $1,000 for subsequent offenses, plus liability for any fines or expenses the buyer incurs.

Constructive levies on vehicles by judgment creditors become invalid unless the creditor physically seizes the vehicle within 30 days of filing notice with the Motor Vehicle Commission.

Good faith purchasers of trade-in vehicles are protected from creditor levies unless the creditor has taken actual physical possession of the vehicle.