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Bill > S686

NJ S686

NJ S686
Prohibits common interest communities from penalizing members who place unit into living, revocable trust fund or classifying placement as title transfer.

summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill would provide that the placement of the unit, or in the case of a cooperative, shares or proprietary lease, and assets, of an association member of a homeowners' association, condominium association, cooperative, or other planned real estate development (association), 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, assets, or shares or proprietary lease, including placing their unit into a living, revocable trust. This bill would protect association members and senior citizens living in an association by prohibiting the association from charging any fees due on transfer of ownership by placing the property in a living, revocable trust fund. The bill would permit an association to charge a fee that is reasonably related to the costs incurred by the association in connection with a transfer of ownership.

AI Summary

This bill would prohibit common interest communities, such as homeowners' associations, condominium associations, and cooperatives, from penalizing members who place their unit or assets into a living, revocable trust fund by charging fees or classifying it as a title transfer. The bill aims to protect association members, particularly senior citizens, from being financially burdened when placing their property in a living trust. However, the association would still be able to charge a reasonable fee to cover the costs associated with the transfer of ownership.

Committee Categories

Housing and Urban Affairs

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/09/2024)
(2 Companion Bills)

bill text

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bill summary

Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2024/S686
BillText https://pub.njleg.gov/Bills/2024/S1000/686_I1.HTM
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