New Jersey Condominium Act (N.J.S.A. 46:8B-1 et seq.): Overview for Condo Boards

Quick Answer

The New Jersey Condominium Act, N.J.S.A. 46:8B-1 et seq., is the state statute that defines a condominium and sets the basic rules for how its association is run. It took effect January 7, 1970 and covers condominium associations (not every HOA). The practical point for boards: the Act sets a floor, and many powers, such as fines and late fees, apply only "if authorized by the master deed or bylaws."

At a Glance

What the Law Says

The Act is short compared with many state condominium laws. The chapter, as indexed in the 2018 Revised Statutes, runs from 46:8B-1 through 46:8B-38. We did not confirm whether sections have been added after that index, so treat the list below as a map, not a complete inventory.

What a condominium is

Section 46:8B-3 defines "condominium" as "the form of ownership of real property under a master deed providing for ownership by one or more owners of units of improvements together with an undivided interest in common elements appurtenant to each such unit." A "unit owner" is a person "owning a unit in fee simple." Common elements include "the land described in the master deed," structural and bearing parts, roofs, halls, stairways, elevators, and "installations of all central services and utilities," excluding anything reserved to particular units. "Limited common elements" are those "for the use of one or more specified units to the exclusion of other units."

"Majority" means "the owners of more than 50% of the aggregate in interest of the undivided ownership of the common elements as specified in the master deed." Any other required percentage is measured the same way, by ownership interest, not by head count.

The association

Section 46:8B-12 makes the association "responsible for the administration and management of the condominium and condominium property." It "may be any entity recognized by the laws of New Jersey, including but not limited to a business corporation or a nonprofit corporation." Section 46:8B-3 adds that the association "may be incorporated or unincorporated."

Governing documents

• The master deed can be amended "in the manner set forth therein." Unless it says otherwise, no amendment changes a unit unless the unit owner and lienholders of record join in it (46:8B-11).
• Bylaws are recorded with the master deed and must cover the form of administration, meetings and quorum, collection of common expenses, and how the bylaws are amended (46:8B-13).
• No bylaw amendment is effective until recorded in the same office as the existing bylaws (46:8B-13(d)).

Money

Common expenses are charged by percentage interest in the common elements, or "in such other proportions as may be provided in the master deed or by-laws." They are a lien on the unit, subject to section 46:8B-21. An owner "may not exempt himself from liability for his share of common expenses by waiver of the enjoyment of the right to use any of the common elements or by abandonment of his unit" (46:8B-17).

Insurance and casualty

Under 46:8B-14(d) the association maintains broad-form fire and extended coverage on common elements and structural portions. Under 46:8B-24(a), covered damage "shall be repaired and restored by the association using the proceeds of any such insurance," and affected owners "shall be assessed on an equitable basis for any deficiency." If proceeds are inadequate "by a substantial amount," or "75% of the unit owners directly affected" vote not to rebuild, the association proceeds to sell the salvage under subsection (b). Subsection (c) lets the master deed or bylaws provide differently.

Developer period

Section 46:8B-12.1 phases in owner control (25 percent, 40 percent, then all board seats), and section 46:8B-12.2 limits early contracts to two years. Both are covered on our developer turnover page.

What This Means in Practice

For boards

Read the Act together with the master deed and bylaws. The statute repeatedly defers to those documents ("if authorized by the master deed or bylaws"), so a board's authority is usually found in the recorded documents first and the Act second. Keep recorded copies of every amendment, since an unrecorded bylaw amendment is not effective.

For owners

Your share of common expenses follows the percentage in the master deed unless the documents say otherwise. Not using the pool or leaving the unit empty does not reduce what you owe.

What the Act does not do

Our reading: the Act does not by itself require reserve studies, election procedures or structural inspections. Those come from the Planned Real Estate Development Full Disclosure Act and related laws. See our PREDFDA overview and our page on covered building inspections. Condominium associations are generally subject to both statutes. Ask counsel how a conflict between them would be resolved in your community.

Open questions

We did not read the text of 46:8B-26 (condominium termination) or sections 46:8B-32 to 46:8B-38 (lease unconscionability, first refusal). We list them below by title only. The voting threshold to terminate is not stated here because we did not confirm it.

Timeline

Related New Jersey Law

• 46:8B-15, association powers and fines
• 46:8B-21, assessment liens and priority
• 46:8B-13 and 46:8B-14, bylaws and association duties
• Planned Real Estate Development Full Disclosure Act overview
• 46:8B-26, termination; 46:8B-32 to 46:8B-38, leases and rights of first refusal (titles only, not reviewed)
• New Jersey HOA laws and regulations overview

Board Checklist

• Keep the recorded master deed, bylaws and every recorded amendment in one place.
• Before fining, billing a late fee or charging a resale fee, find the document language that authorizes it.
• Check that common expenses are allocated the way the master deed or bylaws say.
• Confirm the association carries the casualty and liability coverage described in 46:8B-14.
• Keep accounting records open to owner inspection at reasonable times.
• Calendar a read-through of the bylaws with counsel to spot sections that conflict with current law.

Frequently Asked Questions

Does the New Jersey Condominium Act apply to my HOA?

Only if your community is a condominium, meaning ownership of units under a master deed plus an undivided interest in the common elements. Other planned communities are mainly governed by the Planned Real Estate Development Full Disclosure Act and their own documents. Ask counsel if your structure is mixed.

Does the association have to be a nonprofit corporation?

No. Section 46:8B-12 says it may be "any entity recognized by the laws of New Jersey," including a business or nonprofit corporation, and 46:8B-3 allows an unincorporated association.

What counts as a majority of owners?

More than 50 percent of the aggregate undivided ownership interest in the common elements, as set in the master deed, not more than half the units, unless your documents are written differently for a particular vote.

Can an owner avoid common expenses by abandoning the unit?

No. Section 46:8B-17 says an owner cannot exempt himself from common expenses by waiver of use of common elements or by abandonment of the unit.

Who pays when insurance does not cover all the damage?

Under 46:8B-24(a), the owners directly affected are assessed on an equitable basis for the deficiency, unless the master deed or bylaws provide otherwise under subsection (c).

Can the bylaws be changed without recording?

No. Under 46:8B-13(d) an amendment is not effective until recorded in the same office as the existing bylaws.

Where This Comes From

We read the 2025 Revised Statutes text of N.J.S.A. 46:8B-1, -3, -11, -12, -12.1, -12.2, -13, -13.1, -14, -17 and -24, and the 2018 chapter index for section titles, on the free Justia mirror of the Revised Statutes. Sections 46:8B-15 and 46:8B-21 are covered on their own pages.

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.