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 reported by the Senate Community and Urban Affairs Committee on May 8, 2023, with amendments.
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 1[or] , a1 master deed 1, or a proprietary lease,1 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 1, or in the case of a cooperative, shares or proprietary lease,1 and assets into a living, revocable trust fund shall not constitute a title transfer for purposes of the association 1[. 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] charging a membership fee, capital contribution fee, transfer fee, transfer tax, or other revenue-raising charge that is due on transfer of ownership. Notwithstanding the provisions of this subsection, the association may charge a fee that is reasonably related to the costs incurred by the association in connection with such a transfer of ownership1.
2. This act shall take effect immediately.