Posted in Community Associations

Brandon Farms Property Owners Association, Inc. v. Brandon Farms Condominium Association, Inc.

The New Jersey Supreme Court ruled that under the Condominium Act, N.J.S.A. 46:8B-1 a builder or developer cannot make a condominium association responsible for an individual association member’s failure to pay assessments owed to an “umbrella” organization. In this matter, the “umbrella” organization was the plaintiff, Brandon Farms Property Owners Association which was made up of three separate classes of property owners in the Brandon Farms complex.

  • I have always viewed this matter as an issue between individuals and the Property Owners Association, and not as a matter between the Condominium Association and the Property Owners Association. I feel strongly about this because the Condominium Act references the obligations of individuals and the Corporation(that is, the Condominium Association) and did not obligate any single condominium association to a master association(in this case, the Property Owners Association).

    I am troubled somewhat by the Supreme Court’s reference to the “agreement”(in this case, the Declaration) having been created before the Condominium existed as it may provide strong precedent for future state Courts to strike down provisions in governing documents. As a result of this decision, future courts may find that no single association can exist prior to the association’s governing documents being drafted, approved by the State, and distributed to prospective purchasers.

  • Gerald Rubinsky

    Is there a NJ state law that requires an assessment or (sets a maximum fee) in this instance an entrance fee, when a new homeowner purchases a resale in a community association development.