Choosing between a condominium and a single-family home is often framed as a lifestyle decision. But in New Jersey, it’s also a legal decision — and the legal differences are significant enough that buyers should understand them before they start touring properties.
What You Actually Own
When you buy a single-family home, you own the structure and the land beneath it. When you buy a condominium, you own the interior unit plus an undivided interest in the common elements: hallways, parking, amenities, and land. You do not own the exterior walls, roof, or building systems.
The Condominium Association: Your Hidden Landlord
Every NJ condominium is governed by a Condominium Association with the authority to collect monthly maintenance fees, levy special assessments for major repairs, establish rules about pets, rentals, and renovations, and enforce those rules with fines. Before you buy any condo in NJ, your attorney should review the association’s governing documents.
Key Legal Documents to Review Before Buying a NJ Condo
- Master Deed: Defines what you own and what the association owns.
- By-Laws: Governance structure, meeting requirements, and voting rights.
- Budget and Financial Statements: Is the association financially healthy?
- Meeting Minutes: Recent issues, pending special assessments, ongoing disputes.
- Rules and Regulations: Pet restrictions, rental policies, renovation approval requirements.
Special Assessments: The Risk No One Talks About
A special assessment is a one-time charge levied by the association to cover a major expense that the reserve fund can’t cover. We have seen buyers purchase condos only to receive a special assessment notice for tens of thousands of dollars within months of closing. Your attorney should review the association’s reserve fund study before you close.
Buying a condo or home in NJ? Have your documents reviewed by Bruno Law Group first.
Call: (201) 720-9972 | Email: info@brunolawgroup.com | Visit: brunolawgroup.com
