Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
Places limit on liens filed by condominium associations for unpaid assessments on timeshares.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning association liens on timeshares and supplementing P.L.1969, c.257 (C.46:8B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. In any lien recorded pursuant to subsection a. of section 21 of P.L.1969, c.257 (C.46:8B-21), if the unit subject to the lien is a timeshare property, as defined in section 2 of P.L.2006, c.63 (C.45:15-16.51), the lien shall be for an amount no greater than 18 months of unpaid assessments for that unit.
2. This act shall take effect immediately.
STATEMENT
This bill limits liens for unpaid assessments on timeshares to amounts that are no greater than 18 months of unpaid assessments for that unit.
Timeshares are typically organized under the “Condominium Act” (C.46:8B-1 et seq.), which provides that condominium associations may place a lien on condominium units for certain fees which the unit owner has failed to pay. If liens remain unpaid, the condominium association may foreclose on the unit in order to recoup its losses.
The bill limits the amount of the lien to no more than 18 months of unpaid assessments to encourage condominium associations to foreclose on units instead of allowing fees to accumulate over long periods when owners would prefer to get rid of the timeshare property.