Quick Answer
P.L.2020, c.100 (N.J.S.A. 45:22A-45.3 and 45:22A-45.4) says that an association in a New Jersey community established before the 1977 Planned Real Estate Development Full Disclosure Act may not require owners to pay assessments where the owner's title record imposes no such obligation, "unless otherwise provided by law." A lien recorded after July 13, 2017 that rests solely on a misreading of the 2017 law is "null and void," and the association must discharge it. The law took effect September 30, 2020, retroactive to July 13, 2017.
At a Glance
What the Law Says
The legislative findings (45:22A-45.3)
The Legislature found that "certain associations have interpreted that the provisions of P.L.2017, c.106 (C.45:22A-45.1 et al.), enacted on July 13, 2017, may impose new responsibilities on certain property owners to pay assessments and other charges to their associations." It declared it "necessary and in the public interest" to "clarify that P.L.2017, c.106 ... did not impose new responsibilities on property owners to pay assessments and other charges."
No assessments without a title-record obligation (45:22A-45.4(a))
"An association in a community established prior to the effective date of the 'Planned Real Estate Development Full Disclosure Act,' ('PREDFDA'), P.L.1977, c.419 (C.45:22A-21 et seq.), shall not be permitted to require property owners to pay assessments and other charges where the property owner's title record does not impose such an obligation, unless otherwise provided by law."
Void liens (45:22A-45.4(b))
If, after July 13, 2017, an association recorded a lien for non-payment "that is based solely on the misinterpretation that P.L.2017, c.106 imposed new responsibilities on property owners to pay an association's assessments or other charges," the lien "shall be null and void." The association "shall promptly discharge such lien of record and provide notice of this action to the property owner." If it fails to, "the owner may bring an action to have the lien discharged and, if successful, shall be entitled to petition the court for an award of counsel fees."
How the final text differs from earlier drafts
The bill went through amendments. An earlier version also covered owners whose title record bound only owners who had voluntarily joined, and would have required a court order before an association could assess them. Those provisions, and a statement that the 2017 law did not convert a voluntary association into a planned real estate development, were removed before enactment. The enacted law covers only the two subsections quoted above. Do not rely on descriptions of the earlier draft.
What This Means in Practice
For owners in older communities
The test in the statute is your title record, meaning the deed and recorded documents. If the recorded documents impose no assessment obligation on your property and your community pre-dates the 1977 Act, the association "shall not be permitted to require" payment, "unless otherwise provided by law." If a lien was recorded after July 13, 2017 and rests only on a belief that the 2017 law created a new obligation, it is void by statute.
For boards of older communities
Review the recorded chain of title and governing documents before billing or filing a lien. If you recorded a lien after July 13, 2017 and the only basis was the 2017 law, subsection (b) calls for prompt discharge and notice to the owner. Delay exposes the association to a discharge action and a counsel fee petition.
What the law does not say
The law does not define "title record" or say how far back to look. It does not say what "otherwise provided by law" covers, for example other statutes or case law on implied covenants. It does not address liens recorded for reasons other than the 2017 law, which would be judged under the usual rules. It does not set a deadline for "promptly" discharging. Our reading is that an association with any doubt about the source of its authority should get counsel's review before collecting from owners in a pre-1977 community.
Also note that the law speaks of community establishment before PREDFDA's effective date. We did not review how that date is determined for a community with multiple phases or recorded dates.
Timeline
Related New Jersey Law
- 46:8B-21 and 45:22A-44.1, assessment liens and priority
- Planned Real Estate Development Full Disclosure Act overview
- 45:22A-43, association organization and membership
- New Jersey HOA laws and regulations overview
Board Checklist
- Determine whether the community was established before the 1977 Planned Real Estate Development Full Disclosure Act.
- Pull the title record for each owner and confirm the document imposing the assessment obligation.
- List every lien recorded after July 13, 2017 and the stated basis for each.
- Discharge and send notice for any lien based solely on a reading of P.L.2017, c.106.
- Pause new collection actions in pre-1977 communities until counsel confirms the authority.
- Keep records of discharges and notices sent to owners.
Frequently Asked Questions
Does my association have to be formed before 1977 for this law to apply?
The law applies to an association "in a community established prior to the effective date" of the Planned Real Estate Development Full Disclosure Act (P.L.1977, c.419).
Can my association charge assessments if my deed says nothing about them?
Under 45:22A-45.4(a), an association in a pre-PREDFDA community cannot require payment where the title record does not impose the obligation, "unless otherwise provided by law." Ask counsel what other law may apply.
What happens to a lien recorded after July 13, 2017?
If it is based solely on the misinterpretation that the 2017 law imposed new payment responsibilities, it is null and void, and the association must promptly discharge it and notify the owner.
Can I recover legal fees?
If the association does not discharge a void lien and you sue and win, you may petition the court for counsel fees.
Is the law retroactive?
Yes. The act says it "shall be retroactive to July 13, 2017."
Did the 2017 law create assessment obligations?
The 2020 legislative findings say it "did not impose new responsibilities on property owners to pay assessments and other charges."
Where This Comes From
We read the enrolled text of P.L.2020, c.100 on the Legislature's session law site, and the codified text of 45:22A-45.3 and 45:22A-45.4 on the Justia mirror of the Revised Statutes. We did not read any court decision applying the law.
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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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