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Justices: Condo Association Can’t Reset Clock on Construction Defect Claim (NJ)

The New Jersey Supreme Court ruled Thursday that a condominium association can’t restart the clock on the six-year statute of limitations for construction defects after acquiring a former rental property.  The justices reversed an Appellate Division ruling that found three

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A Board of Trustees May Now Amend the By-Laws Without a Vote of the Unit Owners (NJ)

On July 13, 2017, a new law was enacted in New Jersey amending the Planned Real Estate Development Full Disclosure Act (PREDFDA). PREDFDA governs homeowners associations, condominium associations, and co-ops.  The new PREDFDA provisions apply to trustee elections and certain

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Addressing Harassment Issues in Community Associations

As is well understood, Community Association Boards are elected to manage the property, affairs, and business of the Association. The Board has the power to enforce obligations of the unit owners and do what is necessary and proper for the

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New By-Laws Amendment Procedures Mandated by PREDFDA (NJ)

On July 13, 2017, a new law was enacted in New Jersey amending the Planned Real Estate Development Full Disclosure Act (PREDFDA). While the new law was created in reaction to litigation involving a community called the Radburn Association, which

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Addressing Harassment Issues in Community Associations

As is well understood, Community Association Boards are elected to manage the property, affairs, and business of the Association. The Board has the power to enforce obligations of the unit owners and do what is necessary and proper for the

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Electronic Voting Now Authorized in New Jersey Community Associations

One of the overlooked effects of the recent Radburn Legislation is that it now provides statutory authority for New Jersey community associations to vote electronically. Specifically, the new law authorizes an association to utilize electronic voting: (1) when the board

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HUD Releases Final Rule Related to Discrimination in Community Associations

In September 2016, the U.S. Department of Housing and Urban Development (“HUD”) released final regulations relating to housing discrimination, which now require community associations to investigate claims of harassment by one resident of another resident who is a member of

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Governor (NJ) Signs New Legislation Securing Governance Rights of Owners Residing in Common Interest Communities

On July 13, 2017, Governor Christie signed into law bipartisan legislation amending and supplementing the Planned Real Estate Development Full Disclosure Act (PREDFDA). The new law provides, among other things, that all unit owners be members of their community associations

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Are Free Elections Guaranteed in New Jersey’s Planned Communities?

Governor Chris Christie recently signed a bill that changes how elections in Fair Lawn’s Radburn neighborhood are run — which will impact the approximately 7,000 common interest communities in New Jersey. The so-called “Radburn Bill” changes how residents are elected

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Regarding the Radburn: New Law Enhances Voting Participation Rights in New Jersey Community Associations (NJ)

On July 13, 2017, New Jersey Governor Chris Christie signed into law P.L. 2017, Ch. 106 (S-2492/A-4091). The new law makes significant changes to the Planned Real Estate Development Full Disclosure Act (“PREDFDA”), N.J.S.A. 45:22A-43 et seq., with respect to

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What Should Condominium Associations Do After Cypress Point? (NJ)

It has been several months since the New Jersey Supreme Court decided Cypress Point Condo Ass’n v. Adria Towers, LLC.  The issue in Cypress Point was whether rain water damage caused by a subcontractor’s faulty workmanship constituted “property damage” caused

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Condominium Association Cannot Collect Unpaid Fees from Lender’s Assignee (NJ)

On June 6, 2017, the New Jersey Appellate Division ruled that a foreclosing mortgagee is not liable for unpaid condominium maintenance fees simply because it winterized the unit and changed the locks.  In the published decision Woodlands Community Association Inc.

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NJ App Div Holds Foreclosing Lender Who Simply Winterized and Secured a Condo Is Not a Mortgagee in Possession and Not Responsible for Condo Fees

In a noteworthy decision for New Jersey lenders approved for publication, the New Jersey Appellate Division recently held that a lender who simply winterizes and secures an abandoned property in foreclosure is not deemed a mortgagee in possession subject to

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Can Community Associations Regulate the Use of Drones? (NJ)

Drones are the latest craze to hit the market and chances are someone in your community has a drone, or your community deals with a vendor that uses drones. Drones are small, unmanned aircraft that respond to the commands of

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Does a Foreclosure Complaint Prevent a Community Association from Enforcing Rules and Regulations? (NJ)

A New Jersey Chancery Court was called upon to rule whether the filing of a foreclosure complaint by a condominium association prevents the association from taking other actions to enforce its rules and regulations as they would apply to the

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NJ S181-Act Concerning Snowplow/De-Icing Service Contracts in Community Associations

The New Jersey state Senate passed the bill 181, authored by Senator Christopher Bateman(Hunterdon, Mercer, Middlesex and Somerset), by a vote of 35-0 on January 23, 2017.  The bill, if passed by the Assembly and signed into law by the

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What are the Negative Consequences of Hoarding in a Community Association?

Hoarding is a psychological condition where: 1) individuals have difficulty getting rid of possessions that are no longer useful; and 2) efforts to discard these possessions and not acquire new items cause distress. Television shows such as Hoarding: Buried Alive

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Foreclosure an Effective Method to Recoup Unpaid Condo Assessments

Foreclosure rates for residential properties continue to drop. Black Knight Financial Services reported that in 2016, the national foreclosure rate dropped by 30 percent. The first quarter of 2017 reports the lowest rate of foreclosure activity since 2006.  As the

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Insurance Coverage for Property Damage Caused by Defective Workmanship

One of the principal points of contention between insurers and insureds is whether defective construction work is, or can be, an occurrence, thereby triggering coverage.  The New Jersey Supreme Court has joined a growing number of jurisdictions holding that commercial

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New Jersey Bankruptcy Court Finds Lien Held by Homeowners’ Association Is Subject to Modification

The United States Bankruptcy Court for the District of New Jersey recently overruled a creditor’s objection to the debtors’ proposed chapter 13 plan, rejecting the association’s argument that its claim is secured by a consensual lien and may not be

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Does Your Community Association Need a Drone Policy?

As drone technology advances and the number of drones in the air increases, managers and board members in community associations are asking about drone policies. If drones are being used in your community or if there is a plan for

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Condominium Associations May Recoup Insurance Deductibles (NJ)

One of the largest line items in any condominium association’s budget is its insurance premium. Condominium associations are required, pursuant to their governing documents, to carry adequate property insurance to address common elements (and in many cases, unit owners’ improvements),

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New Jersey Superior Court Holds Condominium Association Was Not Entitled to Redeem Tax Sale Certificate on Condominium

The Superior Court of New Jersey, Hudson County, Chancery Division-General Equity Part recently held that a condominium association’s attempt to redeem a tax sale certificate on a condominium on which it held a lien was not valid because it was

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Recent Appellate Division Decision Expands Private Party Remedies Under New Jersey Spill Act and Demonstrates Condominium Owners’ Potential for Environmental Liability

The New Jersey Appellate Division’s recent decision in Matejek v. Watson was notable in two respects. First, it provides a private party an order compelling another party to participate in an environmental investigation without proving liability, something not previously allowed

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Condo’s and the Environment (NJ)

GREG RENEE MATEJEK v. NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION CLAREMONT HILLS PARCEL TWO CONDOMINIUM ASSOCIATION The facts as found by the trial judge at the conclusion of a bench trial are relatively simple. Briefly, oil was discovered on the

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Condominium Associations May Recoup Insurance Deductibles

One of the largest line items in any condominium association’s budget is its insurance premium. Condominium associations are required, pursuant to their governing documents, to carry adequate property insurance to address common elements (and in many cases, unit owners’ improvements),

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Court Upholds Association Revocation of Parking Privileges (NJ)

A New Jersey trial court has upheld the suspension of parking privileges against a delinquent condominium owner. In this case, the condominium association adopted a Resolution – based on authority from the governing documents – that revoked parking privileges for

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New Jersey Supreme Court Affirms Coverage For Construction Defects

The New Jersey Supreme Court has affirmed the Appellate Division’s pro-policyholder decision in Cypress Point, confirming broad coverage for construction defects. Cypress Point Condominium Association v. Adria Towers, LLC (A-13/14-15) (076348) (August 4, 2016). The Appellate Division had reversed the

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New Jersey Condominium Act

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What Happens Next after Cypress (NJ)

The New Jersey Supreme Court in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC., et al. (A-13/14-15)(076348) finally put to rest (in New Jersey) an issue that has been haunting general contractors and developers since 1979. That is the

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Recent Court Decision Interprets New Jersey Condominium Act To Determine Voting Rights of Investor Owners

For investment purposes, many people purchase condominium units with the intention of renting the unit. On occasion, sophisticated investors will purchase, either individually or more typically through a Limited Liability Company (LLC), blocks of units in a condominium, and subsequently

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Pet Policies in Boards and Associations: From No Pets to Petopia

The approaches to pet policies undertaken by different communities vary wildly in this day and age

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Renters and Owners: How Are They Treated by Community Association Board Members

Stark & Stark Shareholder Christopher Florio recently joined Ray Dickey from AssociationHelpNow to discuss treatment of renters and owners as it applies to homeowner association board members, community managers, and management companies. They discuss board meetings, parking, and access to

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Sign of the Times

With the Republican and Democratic National Conventions behind us, campaign season is now in high gear. Many people feel very strongly about who should become our next President and would like to convince as many people as possible to vote for their preferred candidate. While not everyone has

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New Jersey Supreme Court Issues Important Ruling for Developers and General Contractors Regarding Coverage Under CGL Insurance Policies

The New Jersey Supreme Court’s August 4, 2016 holding in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC is the latest decision to fall in line with the “strong recent trend” by state and federal courts to recognize that

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NJ Supreme Court Decision Paves the Way for Condominium Associations in Transition to Recover Damages against the Developer and Subcontractors

On August 4, 2016, the New Jersey Supreme Court issued its decision in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC, et al., which held that faulty workmanship by a subcontractor that causes property damage is a covered loss

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New Jersey Supreme Court Gives Supreme Win to Policyholders

Supreme Court of New Jersey unanimously affirmed the Appellate Division’s holding that consequential damages caused by a subcontractor’s faulty workmanship constitute “property damage” and an “occurrence”

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New Jersey Supreme Court Finds Coverage Under a Developer’s Commercial General Liability Policy for a Subcontractor’s Faulty Workmanship

The Cyprus Point decision is practically and legally significant for all those who are involved in construction litigation and related insurance coverage cases.

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Foreclosing Association Liens

Many people do not realize that Condominium Associations can foreclose units in the same manner as a mortgagee, pursuant to N.JS.A. 46:8B-21.

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Are You Covered? Insurance for Condos Goes Beyond the Basics

“Maybe 90 percent of a condo association policy is generic, but then it needs to be customized to each community… It’s all in the details,”

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A Cyberlaw Preparedness Primer for Businesses

Given their volume and value of data, businesses need to be particularly cognizant of the cyber-threats and nimble in response to cyber-attacks.

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Voting by Proxy Actually Requires a Proxy

Black’s Law Dictionary defines a “proxy” as the written authorization given by one person to another so that the second person can act for the first

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Condo FAQs: “Limited Priority” Liens Pursuant to the New Jersey Condominium Act

a condominium association’s recorded lien for delinquent common expense assessments may have limited priority over an existing mortgage under certain circumstances.

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NJ Federal Court Says Condo Association Lien May Have Priority in Chapter 13 Bankruptcy Plan

The issue in dispute was whether a condominium lien, which is recorded and served on the owner and mortgagees, is a fully secured claim under bankruptcy law, or a partially secured claim which may be “stripped off” in a bankruptcy plan

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New Law Requires Clearing of Snow from Fire Hydrants within 24 Hours (NJ)

which gives municipalities the authority to require adjacent property owners to clear snow from all fire hydrants “within 24 hours of snow coverage.”

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Condo Lien Has Priority in Ch. 13; Can’t Be Stripped Off (NJ)

A condominium association’s lien for unpaid assessments is partially secured, and cannot be stripped off in a Chapter 13 bankruptcy

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How Community Associations Can Collect on Judgments by Rent Levy (NJ)

If delinquent unit owner rents his unit, one method of collecting on the Judgment is by levying the rental income

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Strip Tease: A Debtor Cannot “Strip Off” or “Cram-Down” a Condominium Lien as Part of a Chapter 13 Bankruptcy Action

The Court reversed a 2015 decision that allowed debtors filing Chapter 13 bankruptcy petitions to “strip off” or “cram down” an association’s lien

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The Transition Engineering Report: Triggering The Statute of Limitations in Condominium Construction Defect Cases

the Appellate Division recognized the application of the discovery rule in the context of condominium defects – See more at: http://www.natlawreview.com/article/transition-engineering-report-triggering-statute-limitations-condominium#sthash.F8ieorcP.dpuf

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(NJ) Statute of Limitations in Association Construction Defect Cases Tolled until Transition from Developer Control

the Court held that the time period for a condominium association to bring claims against contractors who performed work on the association’s common property does not begin to accrue until control of the association is turned over to the owners by the developer

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