Bill
Bill > A2832
NJ A2832
NJ A2832Prohibits common interest communities from penalizing members who place unit into living, revocable trust fund or classifying placement as title transfer.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 prohibits common interest communities, such as homeowners' associations and condominiums, from penalizing members who place their unit, or in the case of a cooperative, their shares or proprietary lease, into a living, revocable trust fund by treating it as a title transfer. A "living, revocable trust fund" is a legal arrangement where an individual places assets into a trust that they can change or cancel during their lifetime. Currently, some community association rules allow them to collect fees or benefit financially when a member sells or transfers their property, and this could include placing it into such a trust. This bill aims to protect association members, especially seniors, by preventing these associations from charging fees like membership fees, capital contributions, or transfer taxes simply because a property has been placed into a living, revocable trust, though associations can still charge fees that are reasonably related to the actual costs they incur during such a transfer.
Committee Categories
Housing and Urban Affairs
Sponsors (3)
Last Action
Introduced, Referred to Assembly Housing Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A2832 |
| BillText | https://pub.njleg.gov/Bills/2026/A3000/2832_I1.HTM |
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