Q: Can a NJ Condo charge new membership fees as a result of deed transfer from me to a trust?
I transfered the title of a condo I owned in NJ to an irrevocable trust. Upon notifying the Community Association of the transfer, they advised Closing Contribution fees are due to the Community Association and Membership fees are due the Section Association because of the transfer and they enclosed a copy of the by-laws. The by-laws in all places refer to these charges as being due from each "purchaser" (term used multiple time in the by-laws) upon acquisition of title. Together, theses fees are $2542.
Is a transfer for no cost considered a sale and the trust considered a purchaser?
A: The right to charge Transfer Fees are provided for in the By Laws. The By Laws description of what is a transfer is controlling. Since the By Laws were prepared by the Condo Association, any interpretation should be drawn against the drafter of the document. Hence, unless extremely clearly defined, any question about the transfer fee should be decided in your favor. One proviso, many documents contain clauses which negate this in type of inference. So check the By Laws carefully. I would suggest that because of the amount involved you speak to an attorney about this issue.
Randy Bryan Ligh agrees with this answer
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