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, ¤ 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, ¤ 3, eff. Jan. 7, 1970. Amended by L. 1973,
c. 216, ¤ 1, eff. Aug. 23, 1973; L. 1979, c. 157, ¤ 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, ¤ 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, ¤ 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, ¤ 6, eff. Jan. 7, 1970.

46:8B-7. Invalidity of contrary agreements Any agreement contrary to the
provisions of this act shall be void.

46:8B-8. Creation, establishment of condominium.

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, ¤ 8; amended 1973, c. 216, ¤ 2; 1997, c.
211, ¤ 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, ¤ 3, eff. Aug. 23, 1973.

46:8B-9. Master deed, contents.

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, ¤ 9; amended 1997, c. 211, ¤ 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, ¤ 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.

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, ¤ 12, eff. Jan. 7, 1970.

46:8B-13. Bylaws

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, ¤ 13; amended 1991, c. 48, ¤ 1; 1996, c.
79, ¤ 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, ¤ 2.



46:8B-14. Responsibilities of association

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, ¤ 14; amended 1995, c. 313, ¤ 1; 1996, c.
79, ¤ 2.


46:8B-15. Powers of association.

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, ¤ 15; amended 1996, c. 79, ¤ 3.


46:8B-16. Authority, rights of unit owner

(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, ¤ 16; amended 1995, c. 313, ¤ 2; 1996, c.
79, ¤ 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, ¤ 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, ¤ 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, ¤ 19, eff. Jan. 7, 1970. Amended by L.
1975, c. 2, ¤ 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, ¤ 20, eff. Jan. 7, 1970.


46:8B-21. Liens in favor of association; priority.

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, ¤ 21; amended 1995, c. 354, ¤ 4;1996, c.
79, ¤ 5;1997, c. 190, ¤ 2.


46:8B-22. Effect of sheriff's sale

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, ¤ 22; amended 1995, c. 354, ¤ 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, ¤ 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, ¤ 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, ¤ 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, ¤ 26, eff. Jan. 7, 1970. Amended by L.
1985, c. 3, ¤ 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, ¤ 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, ¤ 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, ¤ 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, ¤ 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, ¤ 1, eff. Jan. 17, 1980. Amended by L.
1980, c. 103, ¤ 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, ¤ 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, ¤ 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, ¤ 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, ¤ 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, ¤ 6, eff. Jan. 17, 1980. Amended by L.
1980, c. 103, ¤ 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, ¤ 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, ¤ 3, eff. Sept. 11, 1980.