Sept2017

SIGNIFICANT DIFFERENCES

© iStockphoto.com

BETWEEN CONDOMINIUM AND COOPERATIVE COMMUNITY ASSOCIATIONS By Matthew Z. Earle, Esq., Kates, Nussman, Rapone, Ellis & Farhi, LLP

W hile cooperative housing corporations (“co- op”) comprise a large portion of the com- munity associations located in New York City, they are less common across the Hudson and as a consequence can be misunderstood in New Jersey. As will be discussed below, there are substantial legal dif- ferences between co-ops and condominiums (“condo”) resulting in advantages and disadvantages that owners, board members, and those in the industry should be aware of.

The condo unit owner owns a parcel of real property that includes the condominium unit and a percentage interest of the common elements which is documented in a recorded deed. The condo unit owner must pay his or her own mortgage debt service to any lender and real estate taxes assessed by the local municipality against the unit, together with common expenses charges to maintain the common property. Condo associations are usually organized as a nonprofit corporation pursuant to Title 15A. CONT I NU E S ON PAGE 48

Mr. Earle is a partner with the law firm Kates, Nussman, Rapone, Ellis & Farhi, LLP and concentrates his practice in the areas of community association law, land use, real estate tax appeals, construction law, international law, general equity, and commercial litigation before the state and federal courts of New York and New Jersey. Mr. Earle has extensive experience acting as general counsel to community associations and providing legal services relating to, among other things, assisting with the transition from developer to owner control, review and amendment to governing documents, preparation of rules and other corporate documents, managing association risk, resolving insurance coverage issues, assisting with compliance with federal and state laws, advising boards on fiduciary duties, dealing with resident disputes, and handling annual meeting and election issues. Mr. Earle is also experienced in all facets of litigation impacting on community associations including litigation concerning construction defects, election contests, covenant enforcement, and collections. Mr. Earle received a B.A. from Hamilton College in 2000 and a J.D. from Washington and Lee University School of Law in 2004, and is admitted to practice in New York and New Jersey. Mr. Earle is a member of the New Jersey Bar Association and the Bergen County Bar Association, and is also a member of CAI where he serves on the Legislative Action Committee. He has been named a New Jersey Super Lawyer Rising Star from 2010-2017. Courtesy CAI-NJ.

46

S E P T E M B E R , 2 0 1 7