New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 26 - PLANNED REAL ESTATE DEVELOPMENT FULL DISCLOSURE ACT REGULATIONS › Subchapter 1 - GENERAL PROVISIONS › Section 5:26-1.3 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this chapter, shall
				  have the following meanings, unless the context clearly indicates otherwise:
The following words and terms, when used in this chapter, shall
				  have the following meanings, unless the context clearly indicates otherwise:
"Advertising" means and includes the publication or causing to be
				  published of any information offering for disposition or for the purpose of causing
				  or inducing any other person to purchase an interest in a planned real estate
				  development or retirement community, including the sales contract to be used and any
				  photographs or drawings or artist's representation of physical conditions or
				  facilities on the property existing or to exist by means of any:
1. Newspaper or periodical;
2. Radio or television broadcast;
3. Written, printed or photographic matter;
4. Billboards or signs;
5. Display of model houses or units;
6. Material used in connection with the disposition or offer of
				  the development by radio, television, telephone or any other electronic means;
				  or
7. Material used by developers or their agents to induce
				  prospective purchasers to visit the development, particularly vacation certificates
				  which require the holders of such certificates to attend or submit to a sales
				  presentation by the developer or his agents.
"Advertising" does not mean: Stockholder communication such as
				  annual reports, interim financial reports, proxy materials, registration statements,
				  securities prospectuses, applications for listing securities on stock exchanges, and
				  the like; all communications addressed and relating to the account of any person who
				  has previously executed a contract for the purchase of the developer's lands, except
				  when directed to the sale of additional lands.
"Agency" means the Division of Codes and Standards of the State
				  Department of Community Affairs.
"Association" means an association for the management of common
				  elements and facilities, organized pursuant to Section 1 of P.L. 1993, c. 30
				  (N.J.S.A.
				  45:22A-43).
"Association member" means the owner of a unit within a planned
				  real estate development, or a unit's tenant to the extent that the bylaws of the
				  planned real estate development permit tenant membership in the association, and the
				  developer to the extent that the development contains unsold lots, parcels, units,
				  or interests pursuant to Section 1 of P.L. 1993, c. 30 (N.J.S.
A. 45:22A-43).
"Blanket Encumbrance" means a trust deed, mortgage, judgment or
				  other lien or encumbrance including an option or contract to sell or a trust
				  agreement affecting a development or retirement community of more than one lot,
				  parcel, unit or interest therein, but does not include any lien or other encumbrance
				  arising as the result of the imposition of any tax assessment by any public
				  authority.
"Bylaws" means the governing documents adopted under this chapter
				  for the administration and management of the property.
"Commissioner" means the Commissioner of Community
				  Affairs.
"Common promotional plan" means any offer for the disposition of
				  lots, parcels, interests or units of real property by a person or group of persons
				  acting in concert, where such lots, parcels, units or interests are contiguous, or
				  are known, designated or advertised as a common entity or by a common name.
"Condominium" means the form of ownership of real property under a
				  master deed providing for ownership by one or more owners of units or improvements
				  together with an undivided interest in common elements appurtenant to each such
				  unit.
"Condominium property" means the land covered by the master deed,
				  whether or not contiguous, and all improvements thereon, all owned either in fee
				  simple or under lease, and all easements, rights, and appurtenances belonging
				  thereto or intended for the benefit thereof.
"Conversion" means any change with respect to a real estate
				  development, subdivision, apartment complex or other entity concerned with the
				  ownership, use or management of real property which would make such entity a planned
				  real estate development or retirement community.
"Director" means the Director, Division of Codes and Standards,
				  Department of Community Affairs.
"Disposition" means any sale, contract, lease, assignment, or
				  other transaction concerning a planned real estate development or retirement
				  community.
"Division" means the Division of Codes and Standards, Department
				  of Community Affairs.
"Executive board" means the executive board of an association, as
				  provided for in Section 3 of P.L. 1993, c. 30 (N.J.S.A.
				  45:22A-45).
"Expandable project" means a project that includes, at its time of
				  registration under the Act, a certain defined number of units and common facilities,
				  but that the developer anticipates, as indicated in its application for registration
				  in accordance with the Act, that the project may ultimately be made larger by
				  amendment, to include additional units, additional common facilities, or
				  both.
"Interest" means any and all rights to use and enjoy any incident
				  of ownership of any part of a planned real estate development or retirement
				  community.
"Material change" means, but is not limited to, any significant
				  change in the size or character of the development or interest being offered or
				  anything having a significant effect on the rights, duties or obligations of the
				  developer or purchaser.
"Nonbinding reservation agreement" means an agreement between the
				  developer and a prospective purchaser which may be cancelled without penalty by
				  either party upon written notice at any time prior to the formation of a contract
				  for the disposition of any lot, parcel, unit or interest in a planned real estate
				  development or retirement community.
"Offer" means an inducement, solicitation, advertisement, or
				  attempt to encourage a person to acquire a lot, parcel, unit or interest in a
				  planned real estate development or retirement community.
"Person" shall be defined as in
				  R.S.
				  1:1-2.
"Planned Real Estate Development" or "development" means any real
				  property situated within this State, whether contiguous or not, which consists of,
				  or will consist of, separately owned areas, irrespective of form, be it lots,
				  parcels, units or interests, and which are offered or disposed of pursuant to a
				  common promotional plan, and providing for common or shared elements or interests in
				  real property. This definition shall include, but not be limited to, "planned unit
				  development" and "planned unit residential development" as defined in the Municipal
				  Land Use Law, P.L. 1975, c. 291 (
				  N.J.S.A.
				  40:55D-6). This definition shall not include any
				  form of timesharing subject to the New Jersey Real Estate Timeshare Act,
				  P.L.
				  2006, c. 63.
"Purchaser" or "Owner" means any person or persons who acquire a
				  legal or equitable interest in a lot, parcel, unit or interest in a planned real
				  estate development or retirement community and shall be deemed to include a
				  prospective purchaser or prospective owner.
"Retirement Community" means any land which is divided or
				  proposed to be divided into 10 or more lots, whether contiguous or not, for the
				  purpose of sale or lease as part of a common promotional plan where such is
				  advertised or represented as a retirement community or as a community primarily for
				  retirees or elderly persons or where there is a minimum age limit tending to attract
				  persons who are nearing age of retirement, whether located within this State or
				  without.
"Umbrella or master association" means a type of association that
				  is made up of representatives across multiple associations established for the
				  governance, management, and oversight of the common elements and facilities of
				  multiple developments.
"Unit" means any lot, parcel, unit, or interest in a planned real
				  estate development that is, or is intended to be, a separately owned area
				  thereof.
"Voting eligible tenants" means a tenant of a unit within a
				  planned real estate development in which the bylaws of the development permit the
				  tenant's participation in the executive board elections or the development has
				  allowed tenant participation in executive board elections as a standard practice
				  prior to the effective date of
				  P.L.
				  2017, c. 106 (N.J.S.A.
				  45:22A-45.1et seq.). In either instance, the owner
				  shall affirmatively acknowledge the right of the tenant to vote through a provision
				  of a written lease agreement or a separate document. "Voting eligible tenants" shall
				  not be construed to affect voting as an agent of the owner through a proxy or power
				  of attorney.