New Jersey Condo Act 46:8B-26: How a Condominium Is Terminated (80% Vote, Deed of Revocation)

Quick Answer

N.J.S.A. 46:8B-26 is the Condominium Act's termination section. Condominium property can be removed from the Act by agreement of owners of units holding at least 80 percent of the association's votes, or a larger percentage if the master deed or an amendment sets one. Termination takes effect when a deed of revocation is filed. After it is recorded, the former unit owners become tenants-in-common, as section 27 describes.

The statute is short and leaves many practical questions (sale, mortgages, owners who disagree) to the documents and to counsel. We read the 2015 text of section 26 and the 2023 and 2025 texts of sections 27 and 28; we could not retrieve a post-2015 copy of section 26 itself.

At a Glance

What the Law Says

Section 26 has two sentences. In the statute's words, condominium property "may be removed from the provisions of this act by agreement of unit owners of units to which at least 80% of the votes in the association are allocated, or any larger percentage that the master deed or any amendment thereto specifies."

The second sentence sets the timing: "Termination shall be effective upon the filing of a deed of revocation" executed by owners holding that required share of votes (or "the sole owner of the property") and "recorded in the same office as the master deed."

Related sections:

• Section 27: after a deed of revocation is recorded, "the unit owners as of the date of recording of such deed shall become tenants-in-common of the property unless otherwise provided in the master deed or deed of revocation." Each owner holds an undivided interest in the whole property "equal to the percentage of his undivided interest in the common elements before the recording," and "each lien on an individual unit shall become a lien on the individual undivided interest of the unit owner in the entire property."
• Section 28: "The removal of any property from the provisions of this act shall not bar the resubmission of the property to the provisions of this act in the manner herein provided."

What This Means in Practice

Boards

The threshold is counted in votes allocated to units, not in the number of owners. A board looking at termination should first read the master deed and every amendment, because they can raise the percentage above 80. Our reading: a master deed that says nothing about a higher figure leaves 80 percent as the statutory floor.

Owners

The statute says termination happens by agreement of the required share of votes. It does not say in its words that every owner must sign. Owners who did not sign are described in section 27 only as part of the group who become tenants-in-common. Our reading: an owner who disagrees would be bound once the deed of revocation is validly recorded, but this is an area for a licensed attorney, and we have not read case law on it.

Liens and mortgages

Section 27 carries existing liens on a unit over to that owner's undivided interest in the whole property. That sentence addresses liens on individual units. It does not tell us how a lender's mortgage, tax claims or title insurance are handled in a real termination (open question for counsel).

What the sections do not say

• They do not set a notice period, a meeting procedure or a form for the deed of revocation.
• They do not say what happens to the property after termination (sale, division or continued co-ownership). Section 27 says only that owners hold undivided interests.
• They do not state a remedy for owners who object.

Timeline

Related New Jersey Law

• New Jersey Condominium Act overview
• N.J.S.A. 46:8B-21: assessment liens and priority
• N.J.S.A. 46:8B-17: common expenses
• N.J.S.A. 46:8B-13 and -14: bylaws and association duties

Where We Stand

Our position: we are neutral on this law. Termination is a rare, owner-driven decision, and the statute mainly sets a vote threshold that suits a long-standing choice for the owners themselves. For management, the useful habit is record keeping: a current schedule of votes per unit, the master deed with all amendments, and a lien and mortgage list per unit make any future vote easier to count. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.

Board Checklist

• Locate the master deed and every recorded amendment and check for a termination percentage above 80.
• Confirm the schedule of votes allocated to each unit.
• Keep an up-to-date owner roster with recorded deed information.
• List all liens and known mortgages by unit.
• Refer any termination proposal to a licensed New Jersey attorney before circulating papers.
• Keep owner communications factual and consistent while any proposal is under discussion.

Frequently Asked Questions

What percentage of owners must agree to terminate a New Jersey condominium?

Owners of units holding at least 80 percent of the association's votes, or any larger percentage the master deed or an amendment specifies.

When does termination take effect?

Upon the filing of a deed of revocation executed by the required owners and recorded in the same office as the master deed.

Who owns the property after termination?

Section 27 says the unit owners become tenants-in-common unless the master deed or deed of revocation provides otherwise, each with an undivided interest equal to the percentage interest in the common elements before recording.

What happens to liens on a unit?

Under section 27, each lien on an individual unit becomes a lien on that owner's undivided interest in the entire property.

Can a terminated condominium be put back under the Act?

Section 28 says removal does not bar resubmitting the property to the Act "in the manner herein provided."

Does this apply to my HOA?

Section 26 is part of the Condominium Act. An HOA that is not a condominium is governed by its own documents and other laws.

Where This Comes From

We read the text of N.J.S.A. 46:8B-26 as published in the 2015 edition of the New Jersey Revised Statutes on Justia, and sections 46:8B-27 (2025 edition) and 46:8B-28 (2023 edition) from the same publisher. We could not open a later edition of section 26, so confirm the current text with counsel.

How APM Helps

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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.