New Jersey Condominium Transition Agreements, from the Association's view point

Transition Agreements for Condominiums:   Let the Association BeWare

Transition is every association’s independence day.   It marks leaving home, growing up, being “on your own.”

Transition turns responsibility for the common elements and for running the project over to the Association.  The Developer bids you farewell  and leaves the project.

A transition agreement is often signed which in formal terms depicts this separation.  Often the first draft presented to the Association comes from the Developer.  Probably the Association should not sign it but make changes.

  No question, the Associations needs its lawyer to review the document.  Do not try to save money here.

The big issue in the agreement is the release the  builder wants to obtain  from the

Association.  From the Developers’ standpoint, it wants to fix whatever needs to be fixed and leave for good.

The Association may want the Developer to remain liable for repairs for a given time period.  In other words, not only does the developer have to fix whats broken,  but enough time must pass to show that everything was properly fixed.

The builder may also want the association to defend and indemnify it from third party claims.  Really?  When did the Association become an insurance company?   Trick question.   It never did and this issue needs to be looked at and negotiated.

The Association may have to certify it received all transition related documents from the developer.  If so, the Developer must first certify this is true.

The Association may be asked to represent that it is confident all of the books and affairs are in order when transition occurs.   If so,   the Association needs to independently verify this is so.

And who will identify all common elements and verify they were properly installed and functioning.  Some common elements are missed all together in transition.  An expert must be retained to make sure this does not happen at your complex.

Yes, this really is a multifaceted project.  It does not have to cost a small fortune.   But no, doubt,  from the Associations standpoint it must be properly done.

Lieberman & Blecher represents community associations within the State of New Jersey.            www.liebermanblecher.com

Condominium Decks Collapse -- Who is Responsible

Wildwood Missouri residents who reside at the Sandalwood Creek Condominium Community need to look up at all times, especially to avoid  collapsing decks.  A deck attached to a residential unit collapsed this past Memorial Day when four people were standing on it.  All four are now in the hospital.

County officials came to the scene to evaluate all of the decks in the community and the news is not good.  It appears they may not meet current code requirements and some news reports report findings that other deck collapses in the community are foreseeable.

The decks are 30 years old and it appears many have not been properly maintained.  Some appear to be rotting.   One news crew found a decks that was visibly sagging, suggesting that it may be next in line.

So --who is responsible to repair these decks?    Of course it depends on state law and the association documents.  But in many instances, the homeowner will be responsible.

The reason is that these decks are often called "limited" common elements.  They are common elements because they fall beyond the "finished walls in."  But they are "limited," because only the adjoining unit owner can enjoy them, or in this case fall from them.  In these cases often it is the unit owner who must maintain, and if need be replace, the deck structure.

Some news reports suggest that this is the case in Wildwood Missouri.  But everyone may not agree and ultimately a Court may have to interpret the documents in question.

Who ever is responsible aside, decks must routinely inspected and maintained.  And they must be replaced when they are no longer safe.  Even if common funds will not be used to do this, the Association usually has the inherent right to ensure that this work is undertaken on a regular basis.

Stuart Lieberman Is an attorney with Princeton's Lieberman & Blecher.    The firm represents community associations in New Jersey and New York.  www.liebermanblecher.com

Homeowners Associations Need to Be Fair and Even handed

This is an article about the Colorado Legislature's attempt to address complaints that homeowners associations go too far in collecting monthly assessment. 

 They complain that heavy handed tactics are employed and that late fees and other expenses can become a bigger problem than the actual amount owed.  Read the article here.

The point is that community associations need to be transparent, fair and even handed.  Tactics that are unfair are going to result in very costly law suit, and associations may have to pay for both sides lawyers.

Its better to take a little longer, use diplomacy and be fair.  Boards that rush to court are usually the most at risk of paying too much for lawsuits that were not appropriate to begin with.

If some Board members are litigation happy, others should speakup  and make sure that litigation and legal enforcement is being used cost effectively and as a last resport.  Speaking up requires courage, but a voice or reasons must prevail.

Many of these lawsuits are great for the lawyers but not the associations or the unit members.   So slow and steady is the message.

If problems continue expect legislative responses.  Which means this --community associations have a choice of self regulating,  or becoming overly regulated by the state.

  May I suggest that the choice is clear.


Lieberman & Blecher represents community associations in New Jersey.