Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
SYNOPSIS
Revises law relating to common interest communities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning common interest communities, supplementing Title 46 of the Revised Statutes, and repealing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. An additional chapter, chapter 8E, is added to Title 46 of the Revised Statutes as follows:
TITLE 46
CHAPTER 8E
ARTICLE 1
DEFINITIONS AND GENERAL PROVISIONS
46:8E-1. Short title.
This chapter shall be known and may be cited as the New Jersey Common Interest Ownership Act.
46:8E-2. Definitions.
As used in this chapter:
Allocated interests means the following interests allocated to each unit:
a. in a condominium, the undivided interest in the common elements, the common expense liability, and votes in the association;
b. in a cooperative, the common expense liability, the ownership interest, and votes in the association; and
c. in a planned community, the common expense liability and votes in the association.
Assessment means the sum attributable to each unit and due to the association for common expenses.
"Association" or unit owners association means the entity responsible for the administration of a common interest community, which entity may be incorporated or unincorporated.
Bylaws means the instruments, however denominated, that contain the procedures for conduct of the affairs of the association regardless of the form in which the association is organized, including any amendments to the instruments.
Common elements means:
a. in the case of:
(1) a condominium or cooperative, all portions of the common interest community other than the units; and
(2) a planned community, any real estate within a planned community which is owned or leased by the association, other than a unit; and
b. in all common interest communities, any other interests in real estate for the benefit of unit owners which are subject to the declaration.
Common expense liability means the liability for common expenses allocated to each unit pursuant N.J.S.46:8E-20.
Common expenses means expenditures made by, or financial liabilities of, the association, together with any allocations to reserves.
Common interest community means real estate described in a declaration with respect to which a person is obligated by virtue of unit ownership to pay for a share of:
a. real estate taxes;
b. insurance premiums;
c. maintenance; or
d. improvement of, or services or other expenses related to, common elements, other units, or other real estate described in the declaration.
Common interest community includes condominiums, cooperatives, and any other real estate development composed of individually owned property units and common property jointly owned and managed by the unit owners as an association.
Condominium means a common interest community in which portions of the real estate are designated for separate ownership and the remainder of the real estate is designated for common ownership solely by the owners of those portions. A common interest community is not a condominium unless the undivided interests in the common elements are vested in the unit owners.
Cooperative means a common interest community in which the real estate is owned by an association, each member of which is entitled by virtue of the member s ownership interest in the association to exclusive possession of a unit.
Dealer means a person in the business of selling units for the person s own account.
Declarant means any person or group of persons acting in concert that:
a. as part of a common promotional plan, offers to dispose of the interest of the person or group of persons in a unit not previously disposed of;
b. reserves or succeeds to any special declarant right; or
c. applies for registration of a common interest community.
Declaration means the instrument, however denominated, that creates a common interest community, including any amendments to the instrument.
Development rights means any right or combination of rights reserved by a declarant in the declaration to:
a. add real estate to a common interest community;
b. create units, common elements, or limited common elements within a common interest community;
c. subdivide units or convert units into common elements; or
d. withdraw real estate from a common interest community.
Dispose means a voluntary transfer to a purchaser of any legal or equitable interest in a unit, but the term does not include the transfer or release of a security interest.
Executive board means the body, regardless of name, designated in the declaration or bylaws to act on behalf of the association.
Identifying number means a symbol or address that identifies only one unit in a common interest community.
Leasehold common interest community means a common interest community in which all or a portion of the real estate is subject to a lease the expiration or termination of which will terminate the common interest community or reduce its size.
Limited common element means a portion of the common elements allocated by the declaration or by operation of subsections b. or d. of N.J.S.46:8E-15 for the exclusive use of one or more but fewer than all of the units.
Master association means an organization described in N.J.S.46:8E-33.
Offering means an advertisement, inducement, solicitation, or attempt to encourage a person to acquire an interest in a unit, other than as security for an obligation.