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February 18, 2016 Posted in Community Association Law Share

In what will be a benefit to condominiums throughout the State, when confronted with collection actions that fall into Chapter 13 bankruptcy, the U.S. District Court reversed a determination of the Bankruptcy Court that Association liens could be “stripped off” and disregarded.  On appeal from the Bankruptcy Court, Judge Freda Wolfson of the United States District Court issued a decision yesterday reversing a ruling of Judge Gravelle finding that in Chapter 13 cases, a condominium association’s lien cannot be “stripped off” (aside from the statutory six months of maintenance provided for in the New Jersey Condominium Act).    In the matter of, In Re Rones, 15-4271-FLW, an Association filed an amended lien on the debtors’ primary residence prior to the debtor’s filing for Chapter 13 bankruptcy.  At the time of the bankruptcy filing, it was believed that more was owed on the mortgage than the property was worth.    The debtors filed a Chapter 13 plan proposing to only pay the Association six months of maintenance fees, and to strip off the remainder of the lien. The Association objected on the grounds that its lien was protected under the anti-modification provision of the Bankruptcy Code, 11 U.S.C. 1322(b)(2).  The Bankruptcy Court issued an opinion finding that the lien was wholly unsecured except for the six months of maintenance fees that were entitled statutory priority under the New Jersey Condominium Act. The Court said that the remainder of the lien could be stripped off. The Bankruptcy Court and the parties all agreed that the lien was consensual in nature, and therefore a security interest. This part of the Bankruptcy Court’s decision was not contested on appeal. (Had the lien been determined to be statutory, as opposed to consensual – by agreement through the Master Deed – this would have ended the issue, because statutory liens are stripped off.)   Despite the Court’s conclusion that the lien was a consensual one, the...

January 12, 2016 Posted in Community Association Law Share

Assessing fees and penalties against condominium association residents can be a dicey issue for boards, particularly given the fact that board members are also residents of the community and may be involved socially with those residents whose accounts reflect a default.  Nonetheless, collection of dues and membership fees is an integral component to maintaining a healthy bottom line. Sometimes, unfortunately, it takes litigation to ensure that some residents are compliant with the dues requirements.

January 7, 2016 Posted in Community Association Law Share

For community associations, winter weather can mean two things: injuries and expense. Not only is a community association responsible for ensuring common areas such as parking lots and sidewalks are properly cleared of snow and ice, but the association can also face liability in the event a resident or guest is injured due to negligent or insufficient snow removal protocol.

November 30, 2015 Posted in Community Association Law Share

By now, many community associations are familiar with websites like AirBNB.com and VRBO.com. These sites, which are open to the public and generally do not require the payment of a fee to browse, allow property owners to post pictures and information about their properties in hopes of securing several weeks’ worth of renters.

November 25, 2015 Posted in Community Association Law Share

As a condominium board, one of the most important duties entrusted to these elected positions is the proper management of funds derived from annual dues. Under the bylaws of your particular association, there likely exists a set of provisions allowing residents the opportunity to inspect the books and records upon reasonable request.

September 29, 2015 Posted in Community Association Law Share

Between Angie’s List, Craig’s List and the fact a Google search of “contractors in New Jersey” yields about 51.5 million results, it can be difficult for even the most diligent community association to make a decision on hiring a skilled team to perform renovations or improvements. For the most part, community associations are best-advised to rely on personal recommendations, word-of-mouth and intuition when hiring the best man for the job.

September 22, 2015 Posted in Community Association Law Share

Believe it or not, it may soon come time for your community association to begin discussing the best ways to properly address and regulate the use of drones within the property by residents, guests and outsiders alike. As a bit of background, drones are currently permitted by the Federal Aviation Administration (FAA) – without approval – if the aircraft weighs under 55 pounds, steers clear of heavily-populated areas (e.g., stadiums), and is to be used purely for non-commercial purposes. Larger or commercial drone use requires a permit from the FAA, which is only available in a limited set of circumstances. 

By Robert C. Griffin, Esq. August 18, 2015 Posted in Community Association Law Share

On August 12, 2015, the New Jersey Supreme Court decided the case of Cuivan Qian v. Toll Brothers, Inc.  This case considered whether community associations that own private sidewalks are required by statute or common law to maintain those sidewalks.

August 12, 2015 Posted in Community Association Law Share

For decades, there has been no shortage of conclusive scientific proof connecting the practice of smoking with widespread health problems. Issues ranging from skin maladies to deadly cancer can be traced to the harmful cocktail of chemicals found in cigarettes, and these afflictions are not limited to the smoker himself. Most recently, the lethal effects of second- and third-hand smoke have become more understood, prompting bars, restaurants, and other publicly-accommodating establishments to ban the practice all together.