Quick Answer
N.J.S.A. 46:8B-12.1 tells a New Jersey condominium how control passes from the developer to the unit owners. Owners other than the developer elect at least 25 percent of the board once they own 25 percent of the units, at least 40 percent at 50 percent conveyed, and all of it at 75 percent conveyed. Within 60 days of owners electing a board majority, the developer must hand over control and a long list of records. A companion section, 46:8B-12.2, caps early contracts at two years.
At a Glance
What the Law Says
Board seats by conveyance milestone
Under subsection (a), "when unit owners other than the developer own 25% or more of the units," they are "entitled to elect not less than 25% of the members of the governing board." They may elect "not less than 40%" "upon the conveyance of 50% of the units," and "all of the members" "upon the conveyance of 75% of the units." The same subsection says that if some units have been conveyed and "none of the others are being constructed or offered for sale by the developer in the ordinary course of business," owners elect all the members.
The developer may still elect "at least one member" for as long as it "holds for sale in the ordinary course of business one or more units."
The election meeting
Under subsection (b), within 30 days after owners become entitled to elect a board member, the association "shall call, and give not less than 20 days' nor more than 30 days' notice of," a meeting to elect. "The meeting may be called and the notice given by any unit owner if the association fails to do so."
Actions that need the developer's written approval
While the developer holds units for sale in the ordinary course, subsection (c) bars two things without its written approval: assessing the developer as a unit owner for capital improvements, and any association action "that would be detrimental to the sales of units by the developer." An increase in common expense assessments "without discrimination against the developer" is not deemed detrimental.
Turnover and the records the developer must deliver
Subsection (d) says that "prior to, or not more than 60 days after," owners elect a board majority, the developer "shall relinquish control of the association." At the same time it must deliver "all property of the unit owners and of the association held or controlled by the developer." The statute lists 18 categories, including:
- A certified copy of the master deed and amendments, and the association's articles of incorporation or formation documents.
- The bylaws, minute books, house rules, and resignations of developer-appointed board members and officers.
- "An accounting for all association funds, including capital accounts and contributions," and the funds or control of them.
- Association personal property with an inventory.
- Construction plans and specifications with an affidavit or certificate from the developer, an architect or an engineer (not required if the condominium was declared more than 3 years after construction or remodeling was completed).
- Insurance policies, certificates of occupancy, permits in force or issued within one year, and effective written warranties.
- An owner roster, leases of common elements, and management, maintenance, service and other contracts.
Two-year limit on early contracts
Section 46:8B-12.2 says management, employment, service, maintenance and equipment supply contracts made by or for the association "prior to the unit owners having elected at least 75% of the members of the governing board" cannot run "in excess of two years." They cannot be renewed or extended beyond two years at a time, and "at the end of any two-year period, the association may terminate any further renewals or extensions." Separately, a management contract entered after the amendment "shall terminate 90 days after the first meeting of a governing board" in which owners are a majority, "unless the board or other form of administration ratifies the contract or agreement."
What This Means in Practice
For boards in transition
Use the subsection (d) list as an intake checklist. Ask the developer in writing for each item and note what is missing. The 60-day window runs from the owners' election of a board majority, which the statute ties to "not more than 60 days after," so record that election date.
The 90-day management contract rule gives a new owner-majority board a decision point: ratify the developer-era management agreement or let it end. Our reading is that the board should put that on its first agenda after owners hold a majority. Confirm the exact trigger date with counsel.
For owners
Owners can call the election meeting themselves if the association does not. The notice window is not less than 20 nor more than 30 days.
Open questions
The section states no penalty if a developer is late or delivers incomplete records. The statute does not say who certifies completeness. Our reading is that missing items are a matter for counsel and, where relevant, the construction-defect tolling law (see below). Also note that the 25, 40 and 75 percent milestones in 46:8B-12.1 are measured by units conveyed. The newer parallel rule for planned real estate developments in 45:22A-47 uses 60 days after conveyance of 25, 50 and 75 percent. How the two interact for a condominium is a question for counsel.
Timeline
Related New Jersey Law
- 45:22A-43.1 and 45:22A-47.1, developer maintenance document and turnover deliverables
- P.L.2021, c.379, construction-defect limitations
- Condominium Act overview
- DCA rules on developer assessments and reserves
Board Checklist
- Record the date owners elect a board majority and calendar 60 days from it.
- Send the developer a written request listing each 46:8B-12.1(d) item.
- Obtain an accounting of all association funds, including capital accounts and contributions.
- Collect plans and the affidavit or certificate, unless the 3-year exception applies.
- List every management, maintenance and service contract signed before owners held 75 percent of the board.
- Decide whether to ratify the management contract before the 90-day mark.
- Give counsel the list of any missing items and any warranty deadlines.
Frequently Asked Questions
When do owners get a majority of the board in a New Jersey condo?
The statute guarantees owners at least 25 percent of seats once they own 25 percent of units and at least 40 percent at 50 percent conveyed. They elect all seats at 75 percent conveyed, though the developer may keep one seat while it holds units for sale in the ordinary course.
How long does the developer have to hand over control?
Under 46:8B-12.1(d), prior to or not more than 60 days after owners elect a majority of the board.
Can the developer keep a board seat?
Yes. The developer may elect at least one member as long as it holds one or more units for sale in the ordinary course of business.
How long can a developer-era management contract last?
No more than two years at a time, and a management contract entered after the effective date of the amendatory act referenced in the statute ends 90 days after the first board meeting with an owner majority unless the board ratifies it.
Who can call the first owner election?
The association must call it within 30 days, and any unit owner may call it if the association does not. Notice must be not less than 20 and not more than 30 days.
What happens if the developer does not deliver the records?
The statute states no remedy. Ask counsel about enforcement options.
Where This Comes From
We read the 2025 Revised Statutes text of N.J.S.A. 46:8B-12.1 and 46:8B-12.2, and of 45:22A-47, on the Justia mirror of the Revised Statutes. Neither the Legislature's own site nor case law was reviewed for this page.
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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed New Jersey attorney before acting.
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