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J A N U A R Y , 2 0 1 8
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THE DOS
AND DON’TS
FOR 2018
By Angela Morisco, Esq.,
Becker & Poliakoff
THE YEAR
IN REVIEW
T
he year 2017 proved to be very successful for
common interest communities in New Jersey. We
are all very familiar with the amendments to the
Planned Real Estate Development Full Disclosure Act
(“PREDFDA”) which have enriched the voting rights of
owners in common interest communities.
Also pending in the New Jersey legislature, is a bill
that would require lenders that fail to expedite mortgage
foreclosure actions to pay delinquent maintenance fees or
agree to the appointment of a fiscal agent to rent the prop-
erty and collect the income until the foreclosure action is
completed. This legislation would codify the obligations
of lenders and the right of associations to have a receiver
appointed. The lack of statutory authority to appoint a
receiver or a fiscal agent has caused many judges to
deny this remedy to associations.
In addition to the new legislation, there are some
cases of interest from the New Jersey Appellate
Division that warrant attention as well.
Arbitration vs. Mediation
When it comes to alternative dispute resolution in com-
mon interest communities we now know that semantics
matter. The New Jersey Condominium Act, N.J.S.A.
46:8B-1 et seq. and the Planned Real Estate Development
Full Disclosure Act (PREDFDA) N.J.S.A. 45:22A-21 et
seq. require associations to provide a “fair and efficient”
alternative to litigation to resolve “housing related” dis-
putes. These procedures are commonly referred to as
“ADR”. Neither the Condominium Act or PREDFDA con-
template that ADR must or should be binding. Rather, ADR
is intended as an informal attempt to resolve a dispute that
does not forfeit the right to proceed in court if ADR is not
successful.
Parties, and their counsel, must be mindful of the
labels that are used when selecting and participating
in ADR. The case of
Marano v. The Hills Highlands
Master Association, Inc.,
2017 WL 5494624 (App.
Div. November 16, 2017) is instructive to associations
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