Condo Regulations in New Jersey
- New Jersey law gives condo owners specific rights.high rise condo image by jimcox40 from Fotolia.com
New Jersey law gives condominium owners certain rights to view financial records, resolve disputes outside of court and have access to board meetings. These regulations are outlined in the New Jersey Condominium Act, a state law enacted in 1969, the The New Jersey Common Interest Real Property Act of 1995 and the New Jersey Planned Real Estate Full Disclosure Act of 1977. The law regulating the boards of nonprofit businesses, The Non Profit Corporation Act, also applies to condominium boards and gives unit owners the right to request an annual audit of board expenses. - The condominium act requires condominium associations to keep full financial records and present them to unit owners upon their request. Required records include all receipts and expenditures and an account for each unit describing shares of common expenses and other charges due, with their due dates, the present balance and any interest in common surplus. The law leaves what other financial records are required open to interpretation, but the state Department of Community Affairs encourages condominium associations to outline in their bylaws which other records should be provided to unit owners, who may dispute their conclusions through the state-required formal dispute-resolution process.
- Condominium associations are required to provide unit owners a "fair and efficient" means to resolve disputes among one another or with the association without resorting to litigation. Unit owners should be informed of their dispute-resolution options when their association issues a fine. While there is no standard dispute-resolution procedure, the state requires that it be conducted by a body other than the condominium association or elected board, although the board appoints dispute-resolution providers. Common forms of dispute resolution include soliciting recommendations from designated neighbors and nonbinding arbitration in a courtlike setting overseen by a trained mediator.
- Unit owners are allowed to be present at all condominium-board meetings at which the board takes a binding vote and must be given at least 48 hours advance written notice of such meetings. The board must take minutes of these meetings and provide them to unit owners before the next board meeting. Voting rights of unit owners are required to be stipulated in the condominium bylaws, which are submitted to the state with the deed.
- The law sets up various forms of enforcing condominium regulations, most of which are overseen by the state Department of Community Affairs Bureau of Homeowner Protection. That department is responsible for enforcing a condominium association's obligation to make its financial documents available to unit owners. It will also ensure that a board is holding open public meetings according to the law.
- Unit owners who feel their boards have not complied with nonprofit laws requiring annual audits must seek resolution through their association's alternative dispute-resolution process or through litigation. Likewise, the state Bureau of Homeowner Protection cannot review or overturn the conclusions of an association's alternative dispute process or serve as a mediator in disputes. The state advises unit owners who wish to challenge their condominium association to do so through the board's alternative dispute process, through litigation or through electing new members to the board. One exception, however, is with allegations of fraud or criminal conduct, which should be reported to the county prosecutor or other law-enforcement agency.
