Quick Answer
Two sections added by P.L.2023, c.214 shape what a New Jersey developer owes a new association. N.J.S.A. 45:22A-43.1 requires the developer to prepare a preventive maintenance document with a schedule and a budget. N.J.S.A. 45:22A-47.1 requires the developer, within 60 days after conveying 75 percent of the units, to relinquish control and deliver a 19-item list of records, including that document and plans showing field changes to the load bearing system. Both took effect January 8, 2024.
At a Glance
What the Law Says
The preventive maintenance document (45:22A-43.1)
"The developer shall prepare a document which sets forth the preventative maintenance tasks to be undertaken by the association over the life of the common area components." It "shall provide the maintenance schedule and timing for preventive maintenance, including, but not limited to, periodic inspections of the structural components of the buildings or common areas which the association is obligated to maintain."
The developer must include in the budget prepared under its budget rules "all operating expenses associated with the preventative maintenance set forth in the preventative maintenance document." The document "shall be updated at the completion of any structural inspections performed" under the structural integrity law "in order to reflect and address any required corrective maintenance."
Under 45:22A-26(e), the developer must also make copies of this document available to prospective purchasers before the contract date (see our page on 45:22A-26).
The turnover deliverables (45:22A-47.1)
"Within 60 days after the conveyance of 75 percent of the lots, parcels, units, or interests, the developer shall relinquish control of the association, and the unit owners shall accept control, as required by" 45:22A-47. At that time the developer "shall also deliver to the association all property of the unit owners and of the association held or controlled by the developer," including, "if applicable," items (a) through (s):
- (a) to (c) A certified copy of the recorded master deed or declaration and amendments, the association's articles of incorporation or creating documents, and the bylaws and amendments, each certified by affidavit.
- (d) The preventive maintenance document or manual under 45:22A-43.1, "which sets forth a schedule for monitoring on a periodic basis the structural integrity of the buildings' primary load bearing system."
- (e) to (g) Minute books and records, house rules, and resignations of developer-appointed officers and board members.
- (h) and (i) "An accounting for all association funds, including capital accounts and contributions," and association funds or control of them.
- (j) Association tangible personal property with an inventory.
- (k) Plans and specifications "including plans setting forth all field changes impacting any component of the primary load bearing system," with an affidavit-form certificate from the developer, agent, architect or engineer.
- (l) to (o) Insurance policies, certificates of occupancy, permits in force or issued within one year, and effective written warranties.
- (p) to (s) An owner roster, leases of common elements, and employment, management, maintenance, service and other contracts.
Phased surrender of control (45:22A-47)
The parent section says control passes to owners "irrespective of the time set for developer control" in the documents: sixty days after conveyance of 25 percent of units, owners elect at least 25 percent of the executive board; sixty days after 50 percent, at least 40 percent; sixty days after 75 percent, the developer's control "shall terminate," except that the developer may retain "the selection of one executive board member so long as there are any units remaining unsold in the regular course of business." Developer records must be delivered "within 60 days of that transition date." Until the last unit is sold, the association "shall not take any action that would be detrimental to the sale of units by the developer," and must continue the same level of maintenance and services as just before the owners took control.
What This Means in Practice
For boards taking over
Use the (a) to (s) list as a hand-over checklist, and check items (d) and (k) first. They are the new structural items from the 2023 law, and they feed the reserve study and the inspection schedule. See our page on the capital reserve study.
For existing associations
These sections speak to developers going forward and to the transition records. Our reading: they do not by their terms require a developer who already turned over control before January 8, 2024 to create a maintenance document. We did not find language either way, so confirm with counsel for a community whose turnover pre-dates the law.
Open questions
The statute does not say what form the maintenance document must take, who must prepare the schedule technically (an engineer is not required by the text), or what happens if the developer does not prepare it. It states no penalty. It also does not say how 45:22A-47.1's "within 60 days after the conveyance of 75 percent" interacts with the earlier 25 and 50 percent milestones in 45:22A-47. Our reading is that the earlier milestones control board seats, and 45:22A-47.1 controls final turnover and records.
For condominiums, a parallel section (46:8B-12.1) uses a different trigger for the 60-day period, the election of a board majority. See our developer turnover page. Ask counsel which applies to your timeline.
Timeline
Related New Jersey Law
- P.L.2023, c.214, structural integrity and reserve law
- 46:8B-12.1, condominium developer turnover
- 45:22A-26, registration and cancellation right
- 52:27D-132.4, covered building inspections
- DCA developer assessment and reserve rules
Board Checklist
- Request the preventive maintenance document from the developer in writing.
- Check the document includes a schedule, timing and periodic structural inspections.
- Confirm the developer's budget carried the operating expenses for that maintenance.
- Check the plans received show field changes to the load bearing system.
- Match each item (a) to (s) against what was delivered and list gaps.
- Update the document after each structural inspection report.
- Give counsel the gap list and the date the developer conveyed 75 percent of units.
Frequently Asked Questions
What must a New Jersey developer give the association at turnover?
A list of 19 categories (items (a) through (s) of 45:22A-47.1), including recorded governing documents, minutes, an accounting of funds, plans with a certificate, insurance, permits, warranties, an owner roster and contracts.
When must the developer turn over control?
Within 60 days after conveyance of 75 percent of the units, lots, parcels or interests.
What is the preventive maintenance document?
A developer-prepared document setting out maintenance tasks, schedule and timing over the life of the common area components, including periodic structural inspections.
Does the developer pay for the maintenance in its budget?
The developer must include in its budget all operating expenses associated with the preventive maintenance in the document.
Does the document ever change?
Yes. It must be updated after any structural inspections under the structural integrity law to reflect and address required corrective maintenance.
Can the developer keep a board seat?
Under 45:22A-47, the developer may retain the selection of one executive board member while any units remain unsold in the regular course of business.
Where This Comes From
We read the enrolled text of P.L.2023, c.214 on the Legislature's session law site, and the 2025 Revised Statutes text of 45:22A-47 and 45:22A-47.1 on the Justia mirror. We did not read the Department of Community Affairs rules on developer budgets.
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.
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