Condo Act
46:8B-1. Short title
This act shall be known and may be cited as the “Condominium Act.” L.1969, c. 257, s. 1, eff. Jan. 7, 1970.
46:8B-2. Saving clause
This act shall not be construed to amend or repeal the act entitled “An act concerning interests in real property and providing for the creation and regulation of horizontal property regimes,” approved December 16, 1963 (P.L.1963, c. 168). Said act shall continue to govern all property constituted into a horizontal
property regime thereunder, provided that upon waiver of any such regime as provided in said act, the real property may be subjected to the provisions of this act as provided herein.
L.1969, c. 257, s. 2, eff. Jan. 7, 1970.
46:8B-3. Definitions
The following words and phrases as used in this act shall have the meanings set forth in this section unless the context clearly indicates otherwise:
a. “Assigns” means any person to whom rights of a unit owner have been validly transferred by lease, mortgage or otherwise.
b. “Association” means the entity responsible for the administration of a condominium, which entity may be incorporated or unincorporated.
c. “Bylaws” means the governing regulations adopted under this act for the administration and management of the property.
d. “Common elements” means:
(i) the land described in the master deed;
(ii) as to any improvement, the foundations, structural and bearing parts, supports, main walls, roofs, basements, halls, corridors, lobbies, stairways, elevators, entrances, exits and other means of access, excluding any specifically reserved or limited to a particular unit or group of units;
(iii) yards, gardens, walkways, parking areas and driveways, excluding any specifically reserved or limited to a particular unit or group of units;
(iv) portions of the land or any improvement or appurtenance reserved exclusively for the management, operation or maintenance of the common elements or of the condominium property;
(v) installations of all central services and utilities;
(vi) all apparatus and installations existing or intended for common use;
(vii) all other elements of any improvement necessary or convenient to the existence, management, operation, maintenance and safety of the condominium property or normally in common use; and
(viii) such other elements and facilities as are designated in the master deed as common elements.
e. “Common expenses” means expenses for which the unit owners are proportionately liable, including but not limited to:
(i) all expenses of administration, maintenance, repair and replacement of the common elements;
(ii) expenses agreed upon as common by all unit owners; and
(iii) expenses declared common by provisions of this act or by the master deed or by the bylaws.
f. “Common receipts” means:
(i) rent and other charges derived from leasing or licensing the use of common elements;
(ii) funds collected from unit owners as common expenses or otherwise; and
(iii) receipts designated as common by the provisions of this act or by the master deed or the bylaws.
g. “Common surplus” means the excess of all common receipts over all common expenses.
h. “Condominium” means the form of ownership of real property under a master deed providing for ownership by one or more owners of units of improvements together with an undivided interest in common elements appurtenant to each such unit.
i. “Condominium property” means the land covered by the master deed, whether or not contiguous and all improvements thereon, all owned either in fee simple or under lease, and all easements, rights and appurtenances belonging thereto or intended for the benefit thereof.
j. “Developer” means the person or persons who create a condominium or lease, sell or offer to lease or sell a condominium or units of a condominium in the ordinary course of business, but does not include an owner or lessee of a unit who has acquired his unit for his own occupancy.
k. “Limited common elements” means those common elements which are for the use of one or more specified units to the exclusion of other units.
l . “Majority” or “majority of the unit owners” means the owners of more than 50% of the aggregate in interest of the undivided ownership of the common elements as specified in the master deed. If a different percentage of unit owners is required to be determined under this act or under the master deed or bylaws for any purpose, such different percentage of owners shall mean the owners of an equal percentage of the aggregate in interest of the undivided ownership of the common elements as so specified.
m. “Master deed” means the master deed recorded under the terms of section 8 of this act, as such master deed may be amended or supplemented from time to time, being the instrument by which the owner in fee simple or lessee of the property submits it to the provisions of this chapter.
n. “Person” means an individual, firm, corporation, partnership, association, trust or other legal entity, or any combination thereof.
o . “Unit” means a part of the condominium property designed or intended for any type of independent use, having a direct exit to a public street or way or to a common element or common elements leading to a public street or way or to an easement or right of way leading to a public street or way, and includes the proportionate undivided interest in the common elements and in any limited common elements assigned thereto in the master deed or any amendment thereof.
p. “Unit deed” means a deed of conveyance of a unit in recordable form.
q. “Unit owner” means the person or persons owning a unit in fee simple.
L.1969, c. 257, s. 3, eff. Jan. 7, 1970. Amended by L.1973, c. 216, s. 1, eff. Aug. 23, 1973; L.1979, c. 157, s. 1, eff. July 19, 1979.
46:8B-4. Status of units
Each unit shall constitute a separate parcel of real property which may be dealt with by the owner thereof in the same manner as is otherwise permitted by law for any other parcel of real property.
L.1969, c. 257, s. 4, eff. Jan. 7, 1970.
46:8B-5. Types of ownership
Any unit may be held and owned by one or more persons in any form of ownership, real estate tenancy or relationship recognized under the laws of this State.
L.1969, c. 257, s. 5, eff. Jan. 7, 1970.
46:8B-6. Common elements
The proportionate undivided interest in the common elements assigned to each unit shall be inseparable from such unit, and any
conveyance, lease, devise or other disposition or mortgage or other encumbrance of any unit shall extend to and include such proportionate undivided interest in the common elements, whether or not expressly referred to in the instrument effecting the same. The
common elements shall remain undivided and shall not be the object of an action for partition or division. The right of any unit owner to
the use of the common elements shall be a right in common with all other unit owners (except to the extent that the master deed provides
for limited common elements) to use such common elements in accordance with the reasonable purposes for which they are intended
without encroaching upon the lawful rights of the other unit owners.
L.1969, c. 257, s. 6, eff. Jan. 7, 1970.
46:8B-7. Invalidity of contrary agreements
Any agreement contrary to the provisions of this act shall be void.
L.1969, c. 257, s. 7, eff. Jan. 7, 1970.
46:8B-8 Creation, establishment of condominium.
8. A condominium may be created and established by recording in
the office of the county recording officer of the county wherein the
land is located a master deed executed and acknowledged by all owners
or the lessees setting forth the matters required by section 9 of
P.L.1969, c.257 (C.46:8B-9) and section 3 of P.L.1960, c.141
(C.46:23-9.11). The provisions of the “Condominium Act,” P.L.1969,
c.257 (C.46:8B-1 et seq.) shall apply solely to real property of
interests therein which have been subjected to the terms of P.L.1969,
c.257 as provided in this section.
L.1969,c.257,s.8; amended 1973, c.216, s.2; 1997, c.211, s.3.
46:8B-8.1. Establishment of condominium upon land held under lease
Nothing in the act to which this act is a supplement shall be
construed to prevent the creation and establishment of a condominium
as defined in this act, upon land held under a lease by the lessee or
creator of the condominium, provided that the master deed required
under this act shall be signed, not only by the lessee, but also by
the lessor of the land who holds the legal title to the land in fee
simple.
L.1973, c. 216, s. 3, eff. Aug. 23, 1973.
46:8B-9 Master deed, contents.
9. The master deed shall set forth, or contain exhibits setting
forth the following matters:
(a) A statement submitting the land described in the master deed
to the provisions of the “Condominium Act,” P.L.1969, c.257 (C.46:8B-1
et seq.).
(b) A name, including the word “condominium” or followed by the
words “a condominium,” by which the property shall thereafter be
identified.
(c) A legal description of the land.
(d) A survey of the condominium property in sufficient detail to
show and identify common elements, each unit and their respective
locations and approximate dimensions. The plans shall bear a
certification by a land surveyor, professional engineer or architect
authorized and qualified to practice in this State setting forth that
the plans constitute a correct representation of the improvements
described. The survey and plans shall constitute a condominium plan as
defined in section 2 of P.L.1960, c.141 (C.46:23-9.10).
(e) An identification of each unit by distinctive letter, name or
number so that each unit may be separately described thereafter by
such identification.
(f) A description of the common elements and limited common
elements, if any.
(g) The proportionate undivided interests in the common elements
and limited common elements, if any, appurtenant to each unit. These
interests shall in each case be stated as percentages aggregating
100%.
(h) The voting rights of unit owners.
(i) By-laws.
(j) A method of amending and supplementing the master deed, which
shall require the recording of any amendment or supplement in the same
office as the master deed before it shall become effective.
(k) The name and nature of the association and if the association
is not incorporated, the name and residence address, within this State
of the person designated as agent to receive service of process upon
the association.
(l) The proportions or percentages and manner of sharing common
expenses and owning common surplus.
(m) Any other provisions, not inconsistent with the “Condominium
Act,” P.L.1969, c.257 (C.46:8B-1 et seq.), as may be desired,
including but not limited to restrictions or limitations upon the use,
occupancy, transfer, leasing or other disposition of any unit
(provided that any restriction or limitation shall be otherwise
permitted by law) and limitations upon the use of common elements.
L.1969,c.257,s.9; amended 1997, c.211, s.4.
46:8B-10. Unit deeds and other instruments
A deed, mortgage, lease or other instrument pertaining to a unit
shall have the same force and effect in regard to such unit as would
be given to a like instrument pertaining to other real property which
has been similarly made, executed, acknowledged and recorded. A unit
deed shall contain the following:
(a) The name of the condominium as set forth in the master deed,
the name of the political subdivision and county in which the
condominium property is located and a reference to the recording
office, the book and page where the master deed and any amendment
thereto are recorded.
(b) The unit designation as set forth in the master deed.
(c) A reference to the last prior unit deed conveying such unit,
if previously conveyed.
(d) A statement of the proportionate undivided interest in the
common elements appurtenant to such unit as set forth in the master
deed or any amendments thereof.
(e) Any other matters, consistent with this act, which the parties
may deem appropriate.
L.1969, c. 257, s. 10, eff. Jan. 10, 1970.
46:8B-11. Amendments to master deed
The master deed may be amended or supplemented in the manner set
forth therein. Unless otherwise provided therein, no amendment shall
change a unit unless the owner of record thereof and the holders of
record of any liens thereon shall join in the execution of the
amendment or execute a consent thereto with the formalities of a deed.
Notwithstanding any other provision of this act or the master deed,
the designation of the agent for service of process named in the
master deed may be changed by an instrument executed by the
association and recorded in the same office as the master deed.
L.1969, c. 257, s. 11, eff. Jan. 7, 1970.
46:8B-12. The association
The association provided for by the master deed shall be
responsible for the administration and management of the condominium
and condominium property, including but not limited to the conduct of
all activities of common interest to the unit owners. The
association may be any entity recognized by the laws of New Jersey,
including but not limited to a business corporation or a nonprofit
corporation.
L.1969, c. 257, s. 12, eff. Jan. 7, 1970.
46:8B-12.1. Members of governing board; elections; written approval
of actions by developer; control by board; delivery of items
a. When unit owners other than the developer own 25% or more of
the units in a condominium that will be operated ultimately by an
association, the unit owners other than the developer shall be
entitled to elect not less than 25% of the members of the governing
board or other form of administration of the association. Unit owners
other than the developer shall be entitled to elect not less than 40%
of the members of the governing board or other form of administration
upon the conveyance of 50% of the units in a condominium. Unit owners
other than the developer shall be entitled to elect all of the members
of the governing board or other form of administration upon the
conveyance of 75% of the units in a condominium. However, when some
of the units of a condominium have been conveyed to purchasers and
none of the others are being constructed or offered for sale by the
developer in the ordinary course of business, the unit owners other
than the developer shall be entitled to elect all of the members of
the governing board or other form of administration.
Notwithstanding any of the provisions of subsection a of this
section, the developer shall be entitled to elect at least one member
of the governing board or other form of administration of an
association as long as the developer holds for sale in the ordinary
course of business one or more units in a condominium operated by the
association.
b. Within 30 days after the unit owners other than the developer
are entitled to elect a member or members of the governing board or
other form of administration of an association, the association shall
call, and give not less than 20 days’ nor more than 30 days’ notice
of, a meeting of the unit owners to elect the members of the
governing board or other form of administration. The meeting may be
called and the notice given by any unit owner if the association
fails to do so.
c. If a developer holds one or more units for sale in the
ordinary course of business, none of the following actions may be
taken without approval in writing by the developer:
(1) Assessment of the developer as a unit owner for capital
improvements.
(2) Any action by the association that would be detrimental to
the sales of units by the developer. However, an increase in
assessments for common expenses without discrimination against the
developer shall not be deemed to be detrimental to the sales of
units.
d. Prior to, or not more than 60 days after, the time that unit
owners other than the developer elect a majority of the members of the
governing board or other form of administration of an association,
the developer shall relinquish control of the association, and the
unit owners shall accept control. Simultaneously, the developer shall
deliver to the association all property of the unit owners and of the
association held or controlled by the developer, including, but not
limited to, the following items, if applicable, as to each condominium
operated by the association:
(1) A photocopy of the master deed and all amendments thereto,
certified by affidavit of the developer, or an officer or agent of
the developer, as being a complete copy of the actual master deed.
(2) A certified copy of the association’s articles of
incorporation, or if not incorporated, then copies of the documents
creating the association.
(3) A copy of the bylaws.
(4) The minute books, including all minutes, and other books and
records of the association, if any.
(5) Any house rules and regulations which have been promulgated.
(6) Resignations of officers and members of the governing board
or other form of administration who are required to resign because the
developer is required to relinquish control of the association.
(7) An accounting for all association funds, including capital
accounts and contributions.
(8) Association funds or control thereof.
(9) All tangible personal property that is property of the
association, represented by the developer to be part of the common
elements or ostensibly part of the common elements, and an inventory
of that property.
(10) A copy of the plans and specifications utilized in the
construction or remodeling of improvements and the supplying of
equipment to the condominium and in the construction and installation
of all mechanical components serving the improvements and the site,
with a certificate in affidavit form of the developer, his agent, or
an architect or engineer authorized to practice in this State that
such plans and specifications represent, to the best of their
knowledge and belief, the actual plans and specifications utilized in
the construction and improvement of the condominium property and for
the construction and installation of the mechanical components
serving the improvements. If the condominium property has been
declared a condominium more than 3 years after the completion of
construction or remodeling of the improvements, the requirements of
this paragraph shall not apply.
(11) Insurance policies.
(12) Copies of any certificates of occupancy which may have been
issued for the condominium property.
(13) Any other permits issued by governmental bodies applicable
to the condominium property in force or issued within 1 year prior to
the date the unit owners other than the developer take control of the
association.
(14) All written warranties of the contractor, subcontractors,
suppliers, and manufacturers, if any, that are still effective.
(15) A roster of unit owners and their addresses and telephone
numbers, if known, as shown on the developer’s records.
(16) Leases of the common elements and other leases to which the
association is a party.
(17) Employment contracts, management contracts, maintenance
contracts, contracts for the supply of equipment or materials, and
service contracts in which the association is one of the contracting
parties and maintenance contracts and service contracts in which the
association or the unit owners have an obligation or responsibility,
directly or indirectly to pay some or all of the fee or charge of the
person or persons performing the service.
(18) All other contracts to which the association is a party.
L.1979, c. 157, s. 2, eff. July 19, 1979.
46:8B-12.2. Management, employment, service or maintenance contract
or contract for equipment or materials; 2 year limitation;
termination
Any management, employment, service or maintenance contract or
contract for the supply of equipment or material which is directly or
indirectly made by or on behalf of the association, prior to the unit
owners having elected at least 75% of the members of the governing
board or other form of administration of the association, shall not
be entered into for a period in excess of two years. Any such
contract or lease may not be renewed or extended for periods in
excess of two years and at the end of any two-year period, the
association may terminate any further renewals or extensions thereof.
Notwithstanding the above, any management contract or agreement
entered into after the effective date of this amendatory act shall
terminate 90 days after the first meeting of a governing board or
other form of administration in which the unit owners constitute a
majority of the members, unless the board or other form of
administration ratifies the contract or agreement.
L.1979, c. 157, s. 3, eff. July 19, 1979. Amended by L.1983, c.
54, s. 1, eff. Feb. 4, 1983.
46:8B-13. Bylaws
13. The administration and management of the condominium and
condominium property and the actions of the association shall be
governed by bylaws which shall initially be recorded with the master
deed and shall provide, in addition to any other lawful provisions,
for the following:
(a) The form of administration, indicating the titles of the
officers and governing board of the association, if any, and
specifying the powers, duties and manner of selection, removal and
compensation, if any, of officers and board members. If the bylaws
provide that any of the powers and duties of the association as set
forth in sections 14 and 15 of P.L.1969, c.257 (C.46:8B-14 and
46:8B-15) be exercised through a governing board elected by the
membership of the association, or through officers of the association
responsible to and under the direction of such a governing board, all
meetings of that governing board, except conference or working
sessions at which no binding votes are to be taken, shall be open to
attendance by all unit owners, and adequate notice of any such meeting
shall be given to all unit owners in such manner as the bylaws shall
prescribe; except that the governing board may exclude or restrict
attendance at those meetings, or portions of meetings, dealing with
(1) any matter the disclosure of which would constitute an unwarranted
invasion of individual privacy; (2) any pending or anticipated
litigation or contract negotiations; (3) any matters falling within
the attorney-client privilege, to the extent that confidentiality is
required in order for the attorney to exercise his ethical duties as a
lawyer; or (4) any matter involving the employment, promotion,
discipline or dismissal of a specific officer or employee of the
association. At each meeting required under this subsection to be
open to all unit owners, minutes of the proceedings shall be taken,
and copies of those minutes shall be made available to all unit owners
before the next open meeting.
(b) The method of calling meetings of unit owners, the percentage
of unit owners or voting rights required to make decisions and to
constitute a quorum, but such bylaws may nevertheless provide that
unit owners may waive notice of meetings or may act by written
agreement without meetings.
(c) The manner of collecting from unit owners their respective
shares of common expenses and the method of distribution to the unit
owners of their respective shares of common surplus or such other
application of common surplus as may be duly authorized by the bylaws.
(d) The method by which the bylaws may be amended, provided that
no amendment shall be effective until recorded in the same office as
the then existing bylaws. The bylaws may also provide a method for
the adoption, amendment and enforcement of reasonable administrative
rules and regulations, including the imposition of fines and late fees
which may be enforced as a lien pursuant to section 21 of P.L.1969,
c.257 (C.46:8B-21) relating to the operation, use, maintenance and
enjoyment of the units and of the common elements including limited
common elements.
L.1969,c.257,s.13; amended 1991, c.48, s.1; 1996, c.79, s.1.
46:8B-13.1. Explanatory materials, guidelines for condominium
associations, administrators
The Commissioner of Community Affairs shall cause to be prepared
and distributed, for the use and guidance of condominium associations
and administrators, explanatory materials and guidelines to assist
them in achieving proper and timely compliance with the requirements
of this act. Such guidelines may include the text of model bylaw
provisions suggested or recommended for adoption. Failure or refusal
of a condominium association to make proper amendment or
supplementation of its bylaws prior to the effective date of section 1
of this act shall not, however, affect its obligation of compliance
therewith on and after that effective date.
L.1991,c.48,s.2.
46:8B-14. Responsibilities of association
14. The association, acting through its officers or governing
board, shall be responsible for the performance of the following
duties, the costs of which shall be common expenses:
(a) The maintenance, repair, replacement, cleaning and sanitation
of the common elements.
(b) The assessment and collection of funds for common expenses
and the payment thereof.
(c) The adoption, distribution, amendment and enforcement of
rules governing the use and operation of the condominium and the
condominium property and the use of the common elements, including but
not limited to the imposition of reasonable fines, assessments and
late fees upon unit owners, if authorized by the master deed or
bylaws, subject to the right of a majority of unit owners to change
any such rules.
(d) The maintenance of insurance against loss by fire or other
casualties normally covered under broad-form fire and extended
coverage insurance policies as written in this State, covering all
common elements and all structural portions of the condominium
property and the application of the proceeds of any such insurance to
restoration of such common elements and structural portions if such
restoration shall otherwise be required under the provisions of this
act or the master deed or bylaws.
(e) The maintenance of insurance against liability for personal
injury and death for accidents occurring within the common elements
whether limited or general and the defense of any actions brought by
reason of injury or death to person, or damage to property occurring
within such common elements and not arising by reason of any act or
negligence of any individual unit owner.
(f) The master deed or bylaws may require the association to
protect blanket mortgages, or unit owners and their mortgagees, as
their respective interest may appear, under the policies of insurance
provided under clauses (d) and (e) of this section, or against such
risks with respect to any or all units, and may permit the assessment
and collection from a unit owner of specific charges for insurance
coverage applicable to his unit.
(g) The maintenance of accounting records, in accordance with
generally accepted accounting principles, open to inspection at
reasonable times by unit owners. Such records shall include:
(i) A record of all receipts and expenditures.
(ii) An account for each unit setting forth any shares of common
expenses or other charges due, the due dates thereof, the present
balance due, and any interest in common surplus.
(h) Nothing herein shall preclude any unit owner or other person
having an insurable interest from obtaining insurance at his own
expense and for his own benefit against any risk whether or not
covered by insurance maintained by the association.
(i) Such other duties as may be set forth in the master deed or
bylaws.
(j) An association shall exercise its powers and discharge its
functions in a manner that protects and furthers or is not
inconsistent with the health, safety and general welfare of the
residents of the community.
(k) An association shall provide a fair and efficient procedure
for the resolution of housing-related disputes between individual unit
owners and the association, and between unit owners, which shall be
readily available as an alternative to litigation. A person other
than an officer of the association, a member of the governing board or
a unit owner involved in the dispute shall be made available to
resolve the dispute. A unit owner may notify the Commissioner of
Community Affairs if an association does not comply with this
subsection. The commissioner shall have the power to order the
association to provide a fair and efficient procedure for the
resolution of disputes.
L.1969,c.257,s.14; amended 1995, c.313, s.1; 1996, c.79, s.2.
46:8B-15 Powers of association.
15. Subject to the provisions of the master deed, the bylaws,
rules and regulations and the provisions of this act or other
applicable law, the association shall have the following powers:
(a) Whether or not incorporated, the association shall be an
entity which shall act through its officers and may enter into
contracts, bring suit and be sued. If the association is not
incorporated, it may be deemed to be an entity existing pursuant to
this act and a majority of the members of the governing board or of
the association, as the case may be, shall constitute a quorum for the
transaction of business. Process may be served upon the association
by serving any officer of the association or by serving the agent
designated for service of process. Service of process upon the
association shall not constitute service of process upon any
individual unit owner.
(b) The association shall have access to each unit from time to
time during reasonable hours as may be necessary for the maintenance,
repair or replacement of any common elements therein or accessible
therefrom or for making emergency repairs necessary to prevent damage
to common elements or to any other unit or units. The association may
charge the unit owner for the repair of any common element damaged by
the unit owner or his tenant.
(c) The association may purchase units in the condominium and
otherwise acquire, hold, lease, mortgage and convey the same. It may
also lease or license the use of common elements in a manner not
inconsistent with the rights of unit owners.
(d) The association may acquire or enter into agreements whereby
it acquires leaseholds, memberships or other possessory or use
interests in lands or facilities including, but not limited to country
clubs, golf courses, marinas and other recreational facilities,
whether or not contiguous to the condominium property, intended to
provide for the enjoyment, recreation or other use or benefit of the
unit owners. If fully described in the master deed or bylaws, the
fees, costs and expenses of acquiring, maintaining, operating,
repairing and replacing any such memberships, interests and facilities
shall be common expenses. If not so described in the master deed or
bylaws as originally recorded, no such membership interest or facility
shall be acquired except pursuant to amendment of or supplement to the
master deed or bylaws duly adopted as provided therein and in this
act. In the absence of such amendment or supplement, if some but not
all unit owners desire any such acquisition and agree to assume among
themselves all costs of acquisition, maintenance, operation, repair
and replacement thereof, the association may acquire or enter into an
agreement to acquire the same as limited common elements appurtenant
only to the units of those unit owners who have agreed to bear the
costs and expenses thereof. Such costs and expenses shall be assessed
against and collected from the agreeing unit owners in the proportions
in which they share as among themselves in the common expenses in the
absence of some other unanimous agreement among themselves. No other
unit owner shall be charged with any such cost or expense; provided,
however, that nothing herein shall preclude the extension of the
interests in such limited common elements to additional unit owners by
subsequent agreement with all those unit owners then having an
interest in such limited common elements.
(e) The association may levy and collect assessments duly made by
the association for a share of common expenses or otherwise, including
any other moneys duly owed the association, upon proper notice to the
appropriate unit owner, together with interest thereon, late fees and
reasonable attorneys’ fees, if authorized by the master deed or
bylaws.
(f) If authorized by the master deed or bylaws, the association
may impose reasonable fines upon unit owners for failure to comply
with provisions of the master deed, bylaws or rules and regulations,
subject to the following provisions:
A fine for a violation or a continuing violation of the master
deed, bylaws or rules and regulations shall not exceed the maximum
monetary penalty permitted to be imposed for a violation or a
continuing violation under section 19 of the “Hotel and Multiple
Dwelling Law,” P.L.1967, c.76 (C.55:13A-19).
On roads or streets with respect to which Title 39 of the Revised
Statutes is in effect under section 1 of P.L.1945, c.284 (C.39:5A-1),
an association may not impose fines for moving automobile violations.
A fine shall not be imposed unless the unit owner is given written
notice of the action taken and of the alleged basis for the action,
and is advised of the right to participate in a dispute resolution
procedure in accordance with subsection (k) of section 14 of P.L.1969,
c.257 (C.46:8B-14). A unit owner who does not believe that the
dispute resolution procedure has satisfactorily resolved the matter
shall not be prevented from seeking a judicial remedy in a court of
competent jurisdiction.
(g) Such other powers as may be set forth in the master deed or
bylaws, if not prohibited by P.L.1969, c.257 (C.46:8B-1 et seq.) or
any other law of this State.
L.1969,c.257,s.15; amended 1996, c.79, s.3.
46:8B-16. Authority, rights of unit owner
16. (a) No unit owner, except as an officer of the association,
shall have any authority to act for or bind the association. An
association, however, may assert tort claims concerning the common
elements and facilities of the development as if the claims were
asserted directly by the unit owners individually.
(b) Failure to comply with the bylaws and the rules and
regulations governing the details of the use and operation of the
condominium, the condominium property and the common elements, and the
quality of life therein, in effect from time to time, and with the
covenants, conditions and restrictions set forth in the master deed or
in deeds of units, shall be grounds for reasonable fines and
assessments upon unit owners maintainable by the association, or for
an action for the recovery of damages, for injunctive relief, or for a
combination thereof, maintainable by the association or by any other
unit owner or by any person who holds a blanket mortgage or a mortgage
lien upon a unit and is aggrieved by any such noncompliance.
(c) A unit owner shall have no personal liability for any damages
caused by the association or in connection with the use of the common
elements. A unit owner shall be liable for injuries or damages
resulting from an accident in his own unit in the same manner and to
the same extent as the owner of any other real estate.
(d) A unit owner may notify the Commissioner of Community Affairs
upon the failure of an association to comply with requests made under
subsection (g) of section 14 of P.L.1969, c.257 (C.46:8B-14) by unit
owners to inspect at reasonable times the accounting records of the
association. Upon investigation, the commissioner shall have the
power to order the compliance of the association with such a request.
L.1969,c.257,s.16; amended 1995, c.313, s.2; 1996, c.79, s.4.
46:8B-17. Common expenses
The common expenses shall be charged to unit owners according to
the percentage of their respective undivided interests in the common
elements as set forth in the master deed and amendments thereto, or in
such other proportions as may be provided in the master deed or
by-laws. The amount of common expenses charged to each unit shall be
a lien against such unit subject to the provisions of section 21 of
this act. A unit owner shall, by acceptance of title, be
conclusively presumed to have agreed to pay his proportionate share
of common expenses accruing while he is the owner of a unit. However,
the liability of a unit owner for common expenses shall be limited to
amounts duly assessed in accordance with this act, the master deed
and by-laws. No unit owner may exempt himself from liability for his
share of common expenses by waiver of the enjoyment of the right to
use any of the common elements or by abandonment of his unit or
otherwise. The common expenses charged to any unit shall bear
interest from the due date set by the association at such rate not
exceeding the legal interest rate as may be established by the
association or if no rate is so established at the legal rate.
L.1969, c. 257, s. 17, eff. Jan. 7, 1970.
46:8B-18. Prohibited work
There shall be no material alteration of or substantial addition
to the common elements except as authorized by the master deed. No
unit owner shall contract for or perform any maintenance, repair,
replacement, removal, alteration or modification of the common
elements or any additions thereto, except through the association and
its officers. No unit owner shall take or cause to be taken any
action within his unit which would jeopardize the soundness or safety
of any part of the condominium property or impair any easement or
right appurtenant thereto or affect the common elements without the
unanimous consent of all unit owners who might be affected thereby.
L.1969, c. 257, s. 18, eff. Jan. 7, 1970.
46:8B-19. Taxes, assessments and charges; valuation of units;
exemptions or deductions
All property taxes, special assessments and other charges imposed
by any taxing authority shall be separately assessed against and
collected on each unit as a single parcel, and not on the condominium
property as a whole. Such taxes, assessments and charges shall
constitute a lien only upon the unit and upon no other portion of the
condominium property. All laws authorizing exemptions from taxation
or deductions from tax bills shall be applicable to each individual
unit to the same extent they are applicable to other separate
property.
L.1969, c. 257, s. 19, eff. Jan. 7, 1970. Amended by L.1975, c.
2, s. 1, eff. Jan. 22, 1975.
46:8B-20. Liens for labor or materials
(a) Except as otherwise provided in section 23, subsequent to
recording the master deed as provided in this act, and while the
property remains subject to this act, no lien shall arise or be
effective against the condominium property as a whole. During such
period, liens or encumbrances shall arise or be created only against
each unit (including the undivided interest in the common elements
appurtenant to such unit) in the same manner and under the same
conditions in every respect as liens or encumbrances may arise or be
created upon or against any other separate parcel of real property
subject to individual ownership; provided that no labor performed or
materials furnished with the consent or at the request of a unit
owner or his agent or his contractor or subcontractor, shall be the
basis for the filing of a lien pursuant to article 10 of chapter 44
of Title 2A of the New Jersey Statutes against the unit or any other
property of any other unit owner not expressly consenting to or
requesting the same, except that such express consent shall be deemed
to be given by the owner of any unit in the case of emergency repairs
thereto. Labor performed or materials furnished for the common
elements, if duly authorized by the association in accordance with
this act, the master deed or by-laws, shall be deemed to be performed
or furnished with the express consent of each unit owner and shall be
the basis for the filing of a lien pursuant to article 10 of chapter
44 of Title 2A of the New Jersey Statutes against each of the units
and shall be subject to the provisions of subparagraph (b) hereunder.
(b) In the event a lien against 2 or more units becomes effective,
the owner of each separate unit may remove his unit (including the
undivided interest in the common elements appurtenant to such unit)
from the lien and obtain a discharge and satisfaction by payment of
the proportion thereof attributable to such unit. The proportion so
attributable to each unit subject to the lien shall be the proportion
in which all units subject to the lien share among themselves in
liability for common expenses. Subsequent to any such payment, the
lien on such unit shall be discharged or otherwise satisfied of record
and the unit (including the undivided interest in the common elements
appurtenant thereto) shall thereafter be free and clear of such lien.
Such partial payment, discharge and satisfaction shall not prevent
the lienor from proceeding to enforce his rights against any other
unit (including the undivided interest in the common elements
appurtenant thereto) not so paid, satisfied or discharged.
L.1969, c. 257, s. 20, eff. Jan. 7, 1970.
46:8B-21 Liens in favor of association; priority.
21. a. The association shall have a lien on each unit for any
unpaid assessment duly made by the association for a share of common
expenses or otherwise, including any other moneys duly owed the
association, upon proper notice to the appropriate unit owner,
together with interest thereon and, if authorized by the master deed
or bylaws, late fees, fines and reasonable attorney’s fees; provided
however that an association shall not record a lien in which the
unpaid assessment consists solely of late fees. Such lien shall be
effective from and after the time of recording in the public records
of the county in which the unit is located of a claim of lien stating
the description of the unit, the name of the record owner, the amount
due and the date when due. Such claim of lien shall include only sums
which are due and payable when the claim of lien is recorded and shall
be signed and verified by an officer or agent of the association.
Upon full payment of all sums secured by the lien, the party making
payment shall be entitled to a recordable satisfaction of lien.
Except as set forth in subsection b. of this section, all such liens
shall be subordinate to any lien for past due and unpaid property
taxes, the lien of any mortgage to which the unit is subject and to
any other lien recorded prior to the time of recording of the claim of
lien.
b. A lien recorded pursuant to subsection a. of this section
shall have a limited priority over prior recorded mortgages and other
liens, except for municipal liens or liens for federal taxes, to the
extent provided in this subsection. This priority shall be limited as
follows:
(1) To a lien which is the result of customary condominium
assessments as defined herein, the amount of which shall not exceed
the aggregate customary condominium assessment against the unit owner
for the six-month period prior to the recording of the lien.
(2) With respect to a particular mortgage, to a lien recorded
prior to: (a) the receipt by the association of a summons and
complaint in an action to foreclose a mortgage on that unit; or (b)
the filing with the proper county recording office of a lis pendens
giving notice of an action to foreclose a mortgage on that unit.
(3) In the case of more than one association lien being filed,
either because an association files more than one lien or multiple
associations have filed liens, the total amount of the liens granted
priority shall not be greater than the assessment for the six-month
period specified in paragraph (1) of this subsection. Priority among
multiple filings shall be determined by their date of recording with
the earlier recorded liens having first use of the priority given
herein.
(4) The priority granted to a lien pursuant to this subsection
shall expire on the first day of the 60th month following the date of
recording of an association’s lien.
(5) A lien of an association shall not be granted priority over a
prior recorded mortgage or mortgages under this subsection if a prior
recorded lien of the association for unpaid assessments has obtained
priority over the same recorded mortgage or mortgages as provided in
this subsection, for a period of 60 months from the date of recording
of the lien granted priority.
(6) When recording a lien which may be granted priority pursuant
to this act, an association shall notify, in writing, any holder of a
first mortgage lien on the property of the filing of the association
lien. An association which exercises a good faith effort but is
unable to ascertain the identity of a holder of a prior recorded
mortgage on the property will be deemed to be in substantial
compliance with this paragraph.
For the purpose of this section, a “customary condominium
assessment” shall mean an assessment for periodic payments, due the
association for regular and usual operating and common area expenses
pursuant to the association’s annual budget and shall not include
amounts for reserves for contingencies, nor shall it include any late
charges, penalties, interest or any fees or costs for the collection
or enforcement of the assessment or any lien arising from the
assessment. The periodic payments due must be due monthly, or no less
frequently than quarter-yearly, as may be acceptable to the Federal
National Mortgage Association so as not to disqualify an otherwise
superior mortgage on the condominium from purchase by the Federal
National Mortgage Association as a first mortgage.
c. Upon any voluntary conveyance of a unit, the grantor and
grantee of such unit shall be jointly and severally liable for all
unpaid assessments pertaining to such unit duly made by the
association or accrued up to the date of such conveyance without
prejudice to the right of the grantee to recover from the grantor any
amounts paid by the grantee, but the grantee shall be exclusively
liable for those accruing while he is the unit owner.
d. Any unit owner or any purchaser of a unit prior to completion
of a voluntary sale may require from the association a certificate
showing the amount of unpaid assessments pertaining to such unit and
the association shall provide such certificate within 10 days after
request therefor. The holder of a mortgage or other lien on any unit
may request a similar certificate with respect to such unit. Any
person other than the unit owner at the time of issuance of any such
certificate who relies upon such certificate shall be entitled to rely
thereon and his liability shall be limited to the amounts set forth in
such certificate.
e. If a mortgagee of a first mortgage of record or other
purchaser of a unit obtains title to such unit as a result of
foreclosure of the first mortgage, such acquirer of title, his
successors and assigns shall not be liable for the share of common
expenses or other assessments by the association pertaining to such
unit or chargeable to the former unit owner which became due prior to
acquisition of title as a result of the foreclosure. Any remaining
unpaid share of common expenses and other assessments, except
assessments derived from late fees or fines, shall be deemed to be
common expenses collectible from all of the remaining unit owners
including such acquirer, his successors and assigns.
f. Liens for unpaid assessments may be foreclosed by suit brought
in the name of the association in the same manner as a foreclosure of
a mortgage on real property. The association shall have the power,
unless prohibited by the master deed or bylaws to bid on the unit at
foreclosure sale, and to acquire, hold, lease, mortgage and convey the
same. Suit to recover a money judgment for unpaid assessments may be
maintained without waiving the lien securing the same. Nothing herein
shall alter the status or priority of municipal liens under R.S.54:5-1
et seq.
L.1969,c.257,s.21; amended 1995, c.354, s.4;1996, c.79, s.5;1997,
c.190, s.2.
46:8B-22. Effect of sheriff’s sale
22. Effect of sheriff’s sale. (a) A unit may be sold by the
sheriff on execution, free of any claim, not a lien of record, for
common expenses or other assessments by the association, but any funds
derived from such sale remaining after satisfaction of prior liens and
charges but before distribution to the previous unit owner, shall be
applied to payment of such unpaid common expenses or other assessments
if written notice thereof shall have been given to the sheriff before
distribution. Any such unpaid common expenses which shall remain
uncollectible from the former unit owner for a period of more than 60
days after such sheriff’s sale may be reassessed by the association as
common expenses to be collected from all unit owners including the
purchaser who acquired title at the sheriff’s sale, his successors and
assigns. Unless prohibited by the master deed or bylaws, the
association may bid in and purchase the unit at a sheriff’s sale, and
acquire, hold, lease, mortgage and convey the same.
(b) Notwithstanding any foreclosure, tax sale, or other forced
sale of a unit, all applicable provisions of the master deed and
bylaws, shall be binding upon any purchaser at such sale to the same
extent as they would bind a voluntary grantee except that such
purchaser shall not be liable for the share of common expenses or
other assessments by the association pertaining to such unit or
chargeable to the former owner which became due prior to such sale
except as otherwise provided in subsection (a) of this section or
section 21 of P.L.1969, c.257 (C.46:8B-21).
L.1969,c.257,s.22; amended 1995,c.354,s.5.
46:8B-23. Blanket mortgage
Notwithstanding any other provision of this act, if the master
deed or by-laws so permit, the entire condominium property, or some or
all of the units included therein (together with the undivided
interests in common elements and limited common elements appurtenant
to such units) may be subject to a single or blanket mortgage
constituting a first lien thereon created by recordable instrument by
all of the owners of the property or units covered thereby; and any
unit included under the lien of such mortgage may be sold or otherwise
conveyed or transferred subject thereto. The instrument creating any
such mortgage shall provide a method whereby any unit owner may
obtain a release of his unit (together with the undivided interest in
common elements and limited common elements if any, appurtenant
thereto) from the lien of such mortgage and a satisfaction and
discharge in recordable form, upon payment to the holder of the
mortgage of a sum equal to the proportionate share attributable to his
unit of the then outstanding balance of unpaid principal and accrued
interest and any other charges then due and unpaid. Such
proportionate share attributable to each unit shall be the proportion
in which all units then subject to the lien of the mortgage share
among themselves in liability for common expenses as provided in the
master deed or such other reasonable proportion as shall be
specifically provided in the mortgage instrument.
L.1969, c. 257, s. 23, eff. Jan. 7, 1970.
46:8B-24. Fire or other casualty
(a) Damage to or destruction of any improvements on the
condominium property or any part thereof or to a common element or
elements or any part thereof covered by insurance required to be
maintained by the association shall be repaired and restored by the
association using the proceeds of any such insurance. The unit
owners directly affected shall be assessed on an equitable basis for
any deficiency and shall share in any excess.
(b) If the proceeds of such insurance shall be inadequate by a
substantial amount to cover the estimated cost of restoration of an
essential improvement or common element or if such damage shall
constitute substantially total destruction of the condominium property
or of one or more of the buildings comprising the condominium property
or if 75% of the unit owners directly affected by such damage or
destruction voting in accordance with the procedures established by
the by-laws shall determine not to repair or restore, the association
shall proceed to realize upon the salvage value of that portion of
the condominium property so damaged or destroyed either by sale or
such other means as the association may deem advisable and shall
collect the proceeds of any insurance. Thereupon the net proceeds of
such sale, together with the net proceeds of such insurance shall be
considered as one fund to be divided among the unit owners directly
affected by such damage or destruction in proportion to their
respective undivided ownership of the common elements. Any liens or
encumbrances on any affected unit shall be relegated to the interest
in the fund of the unit owners.
(c) The master deed or the by-laws may make other and different
provision covering the eventualities set forth in paragraphs (a) and
(b) of this section or covering other results of damage or destruction
to any part or all of the condominium property, notwithstanding the
provisions of paragraphs (a) and (b). If the master deed or by-laws
shall require insurance against fire and other casualty with respect
to individual units, it shall also provide for the application of the
proceeds and the rights and obligations of unit owners in case of
damage or destruction.
L.1969, c. 257, s. 24, eff. Jan. 7, 1970.
46:8B-25. Eminent domain
If all or any part of the common elements shall be taken, injured
or destroyed by eminent domain, each unit owner shall be entitled to
notice of such taking and to participate through the association in
the proceedings incident thereto. Any damages shall be for the
taking, injury or destruction as a whole and shall be collected by the
association and distributed by it among the unit owners in proportion
to each unit owner’s undivided interest in such common elements,
except to the extent that the association deems it necessary or
appropriate to apply them to the repair or restoration of any such
injury or destruction.
L.1979, c. 257, s. 25, eff. Jan. 7, 1970.
46:8B-26. Condominium termination
Any condominium property may be removed from the provisions of
this act by agreement of unit owners of units to which at least 80% of
the votes in the association are allocated, or any larger percentage
that the master deed or any amendment thereto specifies. Termination
shall be effective upon the filing of a deed of revocation duly
executed by unit owners of units to which at least 80% of the votes in
the association are allocated, or any larger percentage that the
master deed or any amendment thereto specifies or the sole owner of
the property and recorded in the same office as the master deed.
L. 1969, c. 257, s. 26, eff. Jan. 7, 1970. Amended by L. 1985, c.
3, s. 1, eff. Jan. 8, 1985.
46:8B-27. Effect of deed of revocation
Upon the recording of such deed of revocation, the unit owners as
of the date of recording of such deed shall become tenants-in-common
of the property unless otherwise provided in the master deed or deed
of revocation, each such unit owner shall thereafter be the owner of
an undivided interest in the entire property equal to the percentage
of his undivided interest in the common elements before the recording
of such deed of revocation, and each lien on an individual unit shall
become a lien on the individual undivided interest of the unit owner
in the entire property.
L.1969, c. 257, s. 27, eff. Jan. 7, 1970.
46:8B-28. Resubmission
The removal of any property from the provisions of this act shall
not bar the resubmission of the property to the provisions of this act
in the manner herein provided.
L.1969, c. 257, s. 28, eff. Jan. 7, 1970.
46:8B-29. Zoning
All laws, ordinances and regulations concerning planning,
subdivision or zoning, shall be construed and applied with reference
to the nature and use of the condominium without regard to the form of
ownership. No law, ordinance or regulation shall establish any
requirement concerning the use, location, placement or construction of
buildings or other improvements which are, or may thereafter be
subjected to this act unless such requirement shall be equally
applicable to all buildings and improvements which are, or may
thereafter be subjected to this act unless such requirement shall be
equally applicable to all buildings and improvements of the same kind
not then or thereafter to be subjected to this act. No subdivision or
planning approval shall be required as a condition precedent to the
recording of a master deed or the sale of any unit unless such
approval shall also be required for the use or development of the
lands described in the master deed in the same manner as therein set
forth had such lands not been submitted to this act.
L.1969, c. 257, s. 29, eff. Jan. 7, 1970.
46:8B-30. Partial invalidity
If any provision of this act in held invalid, such invalidity
shall not affect other provisions hereof, and to this end the
provisions of this act are declared to be severable.
L.1969, c. 257, s. 30, eff. Jan. 7, 1970.
46:8B-31. Legislative findings and declarations
The Legislature finds and declares that many leases involving use
of parking, recreational or other common facilities or areas by
residents of condominiums were entered into by parties wholly
representative of the interests of a condominium developer at a time
when the condominium unit owners not only did not control the
administration of their condominium but also had little or no voice
in such administration. Such leases often contain numerous
obligations on the part of either or both a condominium association
and condominium unit owners with relatively few obligations on the
part of the lessor. Such leases may or may not be unconscionable in
any given case. Nevertheless, the Legislature finds that certain
onerous obligations and circumstances warrant the establishment of a
rebuttable presumption of unconscionability of certain leases, as
specified in this act.
The Legislature also finds and declares that many contracts for
sale of condominium units, master deeds and association bylaws contain
provisions affording the developer or the association a right of first
refusal to purchase in the event of resale, gift or devise of
condominium units by the purchaser, provisions which are in the
financial interest of the developer or the association and are
designed to limit the freedom of the purchaser to resell the property
as he sees fit. The Legislature finds that the relative balance
between the consideration given the financial interests of the
developer or the association and the limitations placed upon the
property rights of the purchaser contained in such provisions is such
as to warrant the establishment of a rebuttable presumption of
unconscionability with respect to those master deeds and bylaws, and
amendments thereof, adopted prior to the effective date of this
amendatory and supplementary act, and to warrant the prohibition of
such provisions in contracts for the sale of condominium units
executed, and in master deeds and bylaws or amendments of master
deeds or bylaws adopted, on or after that date.
L.1979, c. 297, s. 1, eff. Jan. 17, 1980. Amended by L.1980, c.
103, s. 1, eff. Sept. 11, 1980.
46:8B-32. Unconscionability of leases; rebuttable presumption;
elements of lease
There is hereby established a rebuttable presumption of
unconscionability with respect to leases involving condominium
property, including, but not limited to, leases concerning the use by
condominium unit owners of parking, recreational or other common
facilities or areas. Such presumption may be rebutted by a lessor by
the presentation of evidence of the existence of facts and
circumstances sufficient to justify and validate a lease which would
otherwise appear to be unconscionable under the provisions of this
section. A rebuttable presumption of unconscionability shall arise if
one or more of the following elements exist, but the failure of a
lease to contain any of the following elements shall neither preclude
a determination of its unconscionability nor raise a presumption of
its conscionability:
a. The lease was executed by persons none of whom at the time of
the execution of the lease were elected by condominium unit owners
other than the developer, to represent their interests;
b. The lease requires either the condominium association or the
condominium unit owners to pay real estate taxes on the subject real
property;
c. The lease requires either the condominium association or the
condominium unit owners to insure buildings or other facilities on
the subject real property against fire or any other hazard;
d. The lease requires either the condominium association or the
condominium unit owners to perform some or all maintenance
obligations pertaining to the subject real property or facilities
located upon the subject real property;
e. The lease requires either the condominium association or the
condominium unit owners to pay rents to the lessor for a period of 10
years or more;
f. The lease provides that failure of the lessee to make payments
of rents due under the lease either creates, establishes, or permits
establishment of, a lien upon individual condominium units of the
condominium to secure claims for rent;
g. The lease requires an annual rental which exceeds 20% of the
appraised value of the leased property as improved; provided that for
purposes of this subsection “annual rental” means the amount due
during the first 12 months of the lease for all units regardless of
whether such units were in fact occupied or sold during that period
and “appraised value” means the appraised value placed upon the
leased property the first tax year after the sale of a unit in the
condominium;
h. The lease provides for a periodic rental increase based upon
reference to a price index;
i. The lease or other condominium documents require that every
transferee of a condominium unit must assume obligations under the
lease.
L.1979, c. 297, s. 2, eff. Jan. 17, 1980.
46:8B-33. Severability
If any provision of this act or the application thereof to any
person or circumstance is held invalid, the invalidity shall not
affect other provisions or applications of the act which can be given
effect without the invalid provision or application, and to this end
the provisions of this act are declared severable.
L.1979, c. 297, s. 3, eff. Jan. 17, 1980.
46:8B-34. Selling price; inclusion of statement of membership fees
The developer shall separately state in the selling price of a
unit in a condominium the full membership fee in the condominium
association and all recreational membership fees.
L.1979, c. 297, s. 4, eff. Jan. 17, 1980.
46:8B-35. Lease of parking, recreational or other common facility or
area for over 20 years; option to renew or purchase
When any parking, recreational or other common facility or area
has been leased for the use of the unit owners of a condominium for 20
years or more, the condominium association or the condominium unit
owners shall have the option of renewing the lease on the parking,
recreational or other common facility or area or of buying such
facility or area and subject real property at a conscionable price.
L.1979, c. 297, s. 5, eff. Jan. 17, 1980.
46:8B-36. Master deeds or bylaws of association; rebuttable
presumption of unconscionability
There is hereby established a rebuttable presumption of
unconscionability with respect to provisions of master deeds or
association bylaws recorded prior to the effective date of this act
which shall arise whenever such a master deed or by laws shall
contain any provision or clause affording the developer or the
association a right of first refusal to buy a condominium unit upon
resale, gift or devise by the condominium unit owner. Such
presumption may be rebutted by the developer or the association by
the presentation of evidence of the existence of facts and
circumstances sufficient to justify and validate a provision of the
master deed or the bylaws which would otherwise appear to be
unconscionable under the provisions of this section.
L.1979, c. 297, s. 6, eff. Jan. 17, 1980. Amended by L.1980, c.
103, s. 2, eff. Sept. 11, 1980.
46:8B-37. Application of act
The provisions of this act shall not apply to any lease involving
the use of parking, recreational or other common facilities or areas
at a condominium project where such parking, recreational or other
common facilities have been fully completed and in operation as of the
effective date of this act and the lease therefor is duly executed,
whether before or after the effective date of this act, by the
developer and the association.
L.1979, c. 297, s. 7, eff. Jan. 17, 1980.
46:8B-38. Right of first refusal clause in contract for sale of
condominium, master deed or association bylaws; applicability to
state or any political subdivision
No contract for the sale of a condominium unit executed on or
after the effective date of this amendatory and supplementary act, nor
any master deed or association bylaws adopted on or after that date,
shall contain a clause or provision affording the developer or the
association the right of first refusal to buy a condominium unit upon
resale, gift or devise by the condominium unit owner. No master deed
or association bylaws, whenever adopted, shall be amended on or after
such date to include any such clause or provision affording right of
first refusal. This section shall not apply to the State of New
Jersey or any political subdivision of this State or any department,
division, office, agency or bureau thereof or any authority or
instrumentality created thereby if said right is required by State or
Federal law.
L.1980, c. 103, s. 3, eff. Sept. 11, 1980.
