Page 31 - CooperatorNews NJ Expo 2022

NJ.COOPERATORNEWS.COM COOPERATORNEWS NEW JERSEY —EXPO 2022 29 enforcement process which can lead to the sale of the unit if the owner does not pay. Although that is not an eviction, if the owner vacates, it does have the same effect. However, if the owner does not va- cate, then the successful bidder—the new owner—has to evict the past owner. Shapiro goes on to outline the process for evicting a Massachusetts condomin- ium owner: The first step is to send the unit owner a Statutory Notice of Delin- quency. This is typically done when the unit account is either 60 or 90 days in ar- rears, but in no event earlier than 60 days. If payment is not received and the unit owner does not respond with a payment plan, the board will order a title search and review to confirm not only the hold- er of the first mortgage on the unit, but any other parties in interest—a bank that has granted the unit owner an equity line of credit, for example—who might need to be notified of the arrearage. It’s important to notify these institu- tions because, unlike the limited priority for six months over the first mortgage, the condominium’s lien for unpaid com- mon expenses has a complete prior- ity over any second mortgages. In other words, should the unit be sold to satisfy a judgment, the junior mortgage(s) would completely ‘wipe out.’ Notice of the unit owner’s delinquency is given to second mortgagees so they can decide what steps, if any, to take in order to protect their mortgage. If all of the above does not compel the payment of the arrearage, either by the unit owner or their lender, the associa- tion can file a complaint in district court or superior court. This must be done at the point when the unit owner’s account is six months in arrears, since the filing preserves the six-month limited priority period the association’s lien has over the first mortgage. While the specific terms of art may differ, the option to use an eviction—or an eviction-type proceeding—to remove a tenant is available in both co-op and condo settings to different extents and for different reasons. No matter what the process is called, however, like all legal proceedings, it’s lengthy, acrimonious, and almost always very expensive. There- fore, booting an owner or shareholder out of an HOA or building should be considered as a last resort. Boards of co- op and condominium properties, their management and legal advisors should make all due efforts to settle the matter with an owner or shareholder privately and one-on-one before proceeding with the ‘nuclear option’ of eviction. n A J Sidransky is a staff writer/reporter for CooperatorNews, and a published novelist. He can be reached at alan@yrinc.com. parking spot. Sprudzs adds that “some condo associa- tions have a website and \[make their\] gov- erning documents available online. The buyer can go there to learn about the docu- ments and what they contain.” She says that “it’s also important to have a realtor who is familiar with the specific community and community living in general—not one who is only familiar with single-family homes. Buyers often assume things without asking questions. New owners will ask me, ‘Where do I get my keys?’ You get them at closing, from the broker, not like in a rental situa- tion. And if you need to change the locks, you call a locksmith—not the association.” “In an ideal world,” says Halper, “we should educate buyers, but in reality, it just doesn’t work that way. Buyers must edu- cate themselves. Most co-ops and condos don’t require that buyers educate themselves about co-op or condo life. Requiring it would be a turnoff for many buyers as well. Buyers won’t take an ‘ownership orientation’ class, so you can’t require it. It will never happen. Honestly, I’ve never seen it. There are a few buildings that have assembled a sort of handbook for new shareholders or owners, a kind of ‘Living in Our Building for Dummies’ manual. It’s referred to as a welcome package, but it’s up to the owner to use it. Bigger buildings with a long history as a co-op usually do this.” Interestingly, Staszczak notes that HOA townhouse communities often have com- munity manuals, because they’re so different from living in a multifamily building. And in co-ops, there is an interviewing process with the board before approval of the sale of shares to a new shareholder. That interview is helpful in making the new owner aware of many of these issues. Staszczak says that “another factor be- fore going to contract that can make a big difference is working with the right profes- sionals—brokers in particular. Many real- tors don’t have the best background in how a co-op or condo operates. Use one who does. Also use an attorney who specializes in co-ops and condos—not just a real estate attorney. Work with the right professionals.” The Board’s Role When faced with questions (or com- plaints) from a new member of the com- munity about any issues, the pros agree that the best response from board members is a smile and a suggestion for how to find an appropriate answer to the question—at least the first time. If a new owner or share- holder persists in badgering board mem- bers and refuses to educate themselves, the board member is well within their rights to suggest—sternly, if necessary, though not rudely—that the owner or shareholder con- tact management for more information or ORIENTING... continued from page 16 continued on page 30 Our Expertise is Only Matched by Our Personal Commitment to Each Client’s Goals. 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