Legal Question in Real Estate Law in New Jersey

I'm considering buying a REO condominium with several unique features that are very hard to find elsewhere, but am aware of a few significant problems. I'd like advice whether I have any legal avenues as a condition of purchase to address these flaws. The first problem is severe settling inside the sale unit that, by educated guess, was caused by someone living on a lower floor having removed the central, load bearing wall in their unit. The building has also developed roof leaks above the top-floor, sale unit that are most likely caused by this settling as well. Is there any way to force an engineering inspection and correction of the problem by the offending unit's owner before I buy? What happens if that owner can't afford the correction costs?

The second issue is an environmental remediation problem. In the recent past, an owner of a bottom floor unit jack-hammered into the 2,000 gal underground oil tank that had supplied the building's furnace for common heat and hot water. The municipality allowed a temporary, above-ground tank to be used to maintain heating, but it was removed after 6 months without the larger problem having been corrected (or even attempted). The nine owner's then decided (by simple majority) that each unit would be responsible for providing their own heating systems, but nothing was done about remediating the huge, broken oil tank. Is there some way I can exempt myself from any future assessments to fix that problem (or limit my liability) since I wasn't an owner when the issue developed?

My final issue is with the condo association. The majority of owners (six out of nine) rent their units out and seem unwilling to approve any additional assessments for corrective maintenance, much less improvements. The by-laws (although I haven't seen a copy) supposedly handle all matters by majority rule. Is there any legal way to strengthen the voice of owner-occupants to prevent the building from deteriorating further, or force certain corrections (like the roof leak) by overriding the will of the majority? Thank you in advance for advice offered.


Asked on 12/13/10, 6:20 am

1 Answer from Attorneys

Miriam Jacobson Retired from practice of law

You have raised many valid issues.

First, are you considering buying one unit, or several, or all?

Second, does a bank own the property now?

In previous serious down-cycles, some bank-owned or units owned by a government authority that took over some REOs did not sell properties that had environmental or other serious defects, without first correcting them. This may not be the case now.

Third, as to any non-owner occupied units, check all of the condo documents, including any amendments, to see if there is any limitation of non-owner occupied units. Many condos were required to restrict the number of units that could be investor owned, to satisfy Fannie Mae and other such agencies requirements to enable mortgage lending on the units.

Fourth, There is probably no way to insulate yourself from assessments or liability for environmental issues.

Finally, the condo documents should also state how decisions are made with respect to budgets, special assessments, etc. The documents will state how much of a majority is required for different decisions.

You should be able to see copies of the condo documents by going to the Clerk or other office where deeds and other land records are recorded. Or, that office may provide copies to you, for a charge.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.

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Answered on 12/18/10, 10:32 am


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