Sponsored by:
Senator ROBERT W. SINGER
District 30 (Monmouth and Ocean)
SYNOPSIS
Prohibits common interest communities from penalizing members who place unit into living, revocable trust fund or classifying placement as title transfer.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain common interest community property transfers and supplementing P.L.1977, c.419 (C.45:22A-21 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For purposes of this section, “governing documents,” means:
(1) The recorded declaration of covenants for a community or master deed and all duly adopted and recorded amendments, supplements, and recorded exhibits thereto; and
(2) The articles of incorporation, bylaws, and rules and regulations of the association and any duly adopted amendments thereto.
b. Notwithstanding any other provision of the governing documents of a planned real estate development, the placement by an association member or settlor of an association member’s unit and assets into a living, revocable trust fund shall not constitute a title transfer for purposes of the association. The association shall not charge any fees, penalties, or costs for the placement of an association member’s unit into a living, revocable trust fund.
2. This act shall take effect immediately.
STATEMENT
This bill would provide that the placement of an association member’s unit or assets into a living, revocable trust fund would not constitute a title transfer for the associations’ purposes. Under current State law, the governing documents of some associations could enable the association to derive a financial benefit when an association member sells or transfers a unit, including placing their unit into a living, revocable trust. This bill would protect association members and senior citizens living in a homeowners’ association, condominium association, cooperative, or other planned real estate development, by prohibiting the association from charging any fees, penalties, or costs pursuant to such placement by an association member or settlor.