N.J. Admin. Code § 5:24-1.5

Current through Register Vol. 56, No. 11, June 3, 2024

Section 5:24-1.5 - Full plan of conversion

(a) The "full plan of conversion shall contain the documents and information required in (d) below and in either (b) or (c) below, as may be appropriate, and shall be in compliance with the requirements of (e) and (f) below.

(b) The full plan of condominium or fee simple conversion shall contain the following documents and information:

1. A legal description of the property to be converted together with a map showing the site plan and typical floor plans;

2. The price of the unit being offered;

3. Terms of sale, including copies of sales agreements, financial arrangements, mortgages, and so forth;

4. Copies of the instruments which will be delivered to the purchaser to evidence his interest in the condominium including the unit deed, master deed, bylaws of the condominium association, and such other instruments required to secure purchaser in the possessing of his unit;

5. A statement as to whether a clear marketable title will be given, listing any encumbrances that will survive closing;

6. A statement as to whether a title company, licensed to do business in New Jersey, attests to the validity of the condominium and agrees to insure title to the individual units;

7. A statement of existing taxes and existing or proposed special taxes or assessments which affect said property, indicating those that will carry over to the condominium;

8. An engineering survey, prepared by a licensed engineer or registered architect which shall include mechanical, structural, electrical and engineering reports to disclose the condition and age of the building and its components as of the date of offering. Survey must include items in (d) below;

9. An audited statement of expenses on the property being offered, certified by an independent public accountant, for the past five years or the period of the seller's ownership of the property, whichever is less;

10. Disclosure of all contracts, appointments, agreements and binding obligations made or to be made by the seller that will be binding upon the condominium, setting forth the full details thereof, including the length of time of the obligations or arrangements;

11. A statement that all deposit moneys will be kept in trust until completion of the transaction. The name and address of the escrow agent or trust account to be disclosed;

12. A projected schedule of income and expenses (budget) for the first year of operation of the condominium, including monthly carrying charges for each unit;

13. Disclosure as to the legal jurisdiction wherein the property lies, and a statement as to the extent to which such property is in compliance with all applicable zoning and housing codes and other applicable regulations;

14. The seller's name, address, and the form, date and jurisdiction of organization, and the address of its sales office.

(c) The full plan of cooperative conversion shall contain the following documents and information, which shall be in addition to any requirements which may be imposed by the Bureau of Securities in the New Jersey Department of Law and Public Safety:

Note: This is in addition to any requirements which may be imposed by the Bureau of Securities in the New Jersey Department of Law and Public Safety.

1. Detailed terms of the transaction including the selling price of each unit or share;

2. A legal description of the property to be converted together with a map showing the site plan and typical floor plans;

3. The nature of the interest in the property and how title thereto is to be held;

4. The basis, rate and method of computing depreciation;

5. The nature of the fiduciary relationship of the principals involved, their financial relationship, past, present and future, to the property offered to be converted;

6. All restrictions, if any, or transfer of participant's interest;

7. A statement that all deposit moneys will be kept in trust until completion of the transaction, the name and address of the escrow agent or trust account to be disclosed;

8. The plan shall clearly define which of the real estate holdings offered are in fee ownership or on leaseholds;

9. The terms and conditions of such leaseholds shall be fully disclosed;

10. Copies of the instruments which will be delivered to the purchaser to evidence his interest in the cooperative including the bylaws of the cooperative, the proprietary lease and such other instruments required to secure purchaser in the possession of his unit;

11. A statement as to whether a clear and marketable title will be given, listing any encumbrances that will survive closing;

12. A statement as to whether a title company, licensed to do business in New Jersey, attests to the validity of the cooperative and agrees to insure title to the property;

13. A projected schedule of income and expenses (budget) for the first year of operation of the cooperative, indicating monthly carrying charges for each unit;

14. A statement of any existing taxes and existing or proposed special taxes or assessments which affect said property, indicating those that will carry over to the cooperative;

15. An engineering survey, prepared by a licensed engineer or registered architect which shall include mechanical, structural, electrical and engineering reports to disclose the condition and age of the building and its components as of the date of offering. Survey must include items listed in subsection (c) of this section;

16. An audited statement of expenses on the property being offered, certified by an independent public accountant, for the past five years or the period of the seller's ownership of the property, whichever is less;

17. Disclosure of all contracts, appointments, agreements, and binding obligations made or to be made by the seller that will be binding upon the cooperative, setting forth the full details thereof, including the length of time of the obligations or arrangements;

18. Disclosure as to the legal jurisdiction wherein the property lies and a statement as to the extent to which such property lies and a statement as to the extent to which such property is in compliance with all applicable zoning and housing codes and other applicable regulations;

19. The seller's name, address, and the form, date and jurisdiction of organization and the address of its sales office.

(d) Rules concerning the engineering survey outline are as follows.

1. The engineering survey shall be in narrative form and include, but not be limited to description and condition of all applicable items in the outline below, in the order listed. The outline is intended as an aid to the inspecting architect or engineer and not as a questionnaire.

i. Address;

ii. Block number, lot number;

iii. Zoning;

iv. Year built;

v. Violations outstanding--building, housing, air pollution, fire, other authorities;

vi. Alterations--date, number and brief description;

vii. Class of construction (fireproof, non-fireproof, and so forth).

2. Site:

i. Location;

ii. Size--dimensions, acreage;

iii. Streets--project owned or public:

(1) Paving--material;

(2) Curbing--material;

(3) Sidewalks--material;

(4) Drainage;

(5) Catch basins--type sewers;

(6) Street lighting;

(7) Drives--paving, curbing, drainage;

(8) Off-street parking areas--paving, curbing, drainage.

iv. Utilities--give company or municipality furnishing service:

(1) Water supply;

(2) Sanitary sewers;

(3) Storm sewers;

(4) Gas;

(5) Electric;

(6) Telephone.

v. Subsoil conditions including water conditions;

vi. Number of buildings and use.

3. Structural system:

i. Steel or concrete frame;

ii. Other--describe;

iii. Type of foundations.

4. Exterior of building:

i. Walls (describe wall materials on all sides at all levels);

ii. Insulation--"R" number;

iii. Windows (types and materials) in all parts of building:

(1) Sills;

(2) Grilles;

(3) Stormsash;

(4) Screens;

(5) Hardware;

(6) Single or double glazing;

(7) Caulking.

iv. Parapets and copings--materials;

v. Chimneys and caps--number and materials for each:

(1) Boilers;

(2) Incinerators;

(3) Fireplaces;

(4) Other.

vi. Balconies and terraces:

(1) Deck finish;

(2) Balustrade (type and material);

(3) Copings;

(4) Railings;

(5) Soffit;

(6) Doors to balcony--type and material.

vii. Tenant entrances:

(1) Marques;

(2) Canopy;

(3) Exterior doors;

(4) Vestibule doors;

(5) Exterior stairs;

(6) Railings;

(7) Other.

viii. Service entrances:

(1) Doors;

(2) Gates;

(3) Exterior stairs;

(4) Railings;

(5) Other.

5. Roofs and roof structures:

i. Type roofs (for all areas):

(1) Material (give number of plies if built up);

(2) Insulation--"R" number;

(3) Surface finish;

(4) Age;

(5) Bond or guarantee (if any);

(6) If old roof is recovered, give date and description;

(7) Flashing materials;

(8) Drains;

(9) Gutters and leaders.

ii. Skylights;

iii. Bulkheads--wall materials:

(1) Stair;

(2) Elevator;

(3) Other.

iv. Water tank enclosure (if any);

v. Metal work at roof levels:

(1) Exterior metal stairs;

(2) Ladders;

(3) Railings;

(4) Other.

6. Fire escapes:

i. Number;

ii. Type;

iii. Material.

7. Yards and courts;

i. Paving;

ii. Drainage;

iii. Railings;

iv. Stairs;

v. Fencing or walls;

vi. Other.

8. Interior stairs:

i. Number of stairs of each type;

ii. Enclosure--construction and interior finishes;

iii. Stair construction (steel, concrete, wood, and so forth);

iv. Treads and risers--materials;

v. Railings.

9. Elevators:

i. Number of passenger and service elevators;

ii. Manufacturer;

iii. Age;

iv. Type operation and speed (feet per minute):

(1) Manual;

(2) Automatic (type controls);

(3) Doors (sliding, swinging, manual, automatic);

(4) Date and description of improvements;

(5) Location of machine rooms;

(6) Type of machine and input power:

(A) DC to motor;

(B) AC to motor--generator set;

(C) Other.

v. Description of cabs:

(1) Floor;

(2) Walls;

(3) Ceiling;

(4) Date of last inspection (for example government);

(5) Maintenance contract, and so forth.

10. Laundry rooms:

i. Location and number of rooms;

ii. Washers--number;

iii. Dryers--number;

iv. Laundry trays--number;

v. Room ventilation;

vi. Dryer ventilation;

vii. Operation (co-op owned, common element or concession).

11. Refuse disposal:

i. Method of disposal;

ii. Number of incinerators or compaction units:

(1) Approval by authority having jurisdiction;

iii. Storage location;

iv. Pick-up schedule;

v. Public or contract collection.

12. Plumbing and drainage:

i. Water supply:

(1) Source or company--approvals as required;

(2) Meters--individual or common charges;

(3) Piping--materials, age, condition, insulation (Date and description of replacement or major improvements);

ii. Describe system, pumps, storage;

iii. Fire protection system--standpipes, hoses, sprinklers, siamese connections;

iv. Water storage tanks:

(1) Number;

(2) Material;

(3) Location;

(4) Capacity--fire reserve.

v. Water pressure;

vi. Sanitary sewage system;

vii. Piping--age and materials;

viii. Sewage pumps (if any);

ix. Sewage disposal--public, private, treatment, drainfield, sewer;

x. Storm drainage system;

xi. Piping--age and materials;

xii. Pumps (if any);

xiii. Method of disposal.

13. Heating:

i. Method;

ii. Number of boilers;

iii. Fuel;

iv. Manufacturer of boilers, age and date of installation;

v. Manufacturer of burners, age and date of installation;

vi. Date of boiler inspection;

vii. Capacity of oil tank;

viii. Location of oil tank;

ix. Date and description of major changes or improvements to system;

x. Type of controls;

xi. Description of radiators, piping, insulation, valves, pumps, and so forth;

xii. Method of heating and distributing domestic hot water.

14. Ventilation:

i. System--describe (Include windowless areas, halls, garages, laundries, kitchens, baths.

15. Air conditioning:

i. Type system--central system or individual units;

ii. Window unit ownership--tenant, common element or co-op;

iii. Water tower, air-cooled condensers--location.

16. Gas supply:

i. Type--bottled or main service;

ii. Meters--individual or common;

iii. Piping--material, condition.

17. Pest control:

i. Need and frequency of service.

18. Electrical:

i. Date of installation;

ii. Improvements--date and complete description;

iii. Meters--common or individual;

iv. Service entrance equipment including:

(1) Voltage and current ratings;

(2) Phases.

v. Ratings of main fuses, distribution breakers or fuses to apartments;

vi. Adequacy of:

(1) Service (average number circuits per apartment and capacities);

(2) Lighting and fixtures;

(3) Convenience outlets; appliance outlets (average number per room including air-conditioner outlets).

vii. Intercommunication system and door signal system;

viii. Switchboard;

ix. Television reception facilities:

(1) Master antenna--apartment outlet distribution;

(2) Cable television;

(3) Antenna by tenants;

(4) Security television: Number cameras, monitors.

x. Description and adequacy of lighting:

(1) Entrance;

(2) Halls and stairs;

(3) Yard;

(4) Site.

19. Garages and parking areas:

i. Location;

ii. Number of parking spaces and how allocated;

iii. Type of parking (attended?);

iv. Ventilation--method;

v. Fire protection;

vi. Drains.

20. Recreation facilities:

i. Swimming pool--approval by authorities;

ii. Other.

(e) In order to meet the procedural requirements to evict tenants who choose not to purchase ownership in the condominium, fee simple development or cooperative, a three-year notice of intention to initiate a court action for eviction must be given.

1. The owner must wait 60 days after serving the "notice of intent" to convert and "the full plan of conversion" before giving the three year notice.

2. Where a written lease is in effect for a longer period than three years, no court action seeking eviction can be instituted until the lease expires.

3. Serving the three year notice shall have no effect on the total 90 days of exclusive right to purchase provided for in the Act. The final 30 days can run concurrently with the beginning of the three year notice.

4. This three year notice shall specify the cause for terminating the tenancy and shall be served personally upon the tenant by giving him a copy or by leaving a copy at the usual place of abode with some member of the family above the age of 14, or by certified mail; if the certified letter is not claimed, notice shall be sent by regular mail.

(f) Copies of the full plan of conversion shall conform to the following standards:

1. No printing shall be in a type smaller than six point;

2. There shall be a front cover that shall contain the name and address both of the developer and of the development;

3. There shall be a reasonably detailed table of contents setting forth the subject matter of the various sections, subsections and documents contained in the full plan of conversion and the page on which each begins;

4. The text shall be printed on good quality unglazed white paper that is no smaller than 8 1/2 inches by 11 inches and no larger than 8 1/2 inches by 14 inches. The cover may be of a different color, but all printing on the cover shall be legible; and

5. Each copy shall be bound, at a minimum, with heavy-duty staples.

N.J. Admin. Code § 5:24-1.5

As amended, R.1981 d.354, effective 9/10/1981.
See: 13 New Jersey Register 392(a), 13 New Jersey Register 562(a).
(a) Substantially amended, (b) "Condominium" added, (c) "cooperative" added.
Amended by R.1985 d.529, effective 10/21/1985.
See: 17 New Jersey Register 1706(a), 17 New Jersey Register 2536(a).
Substantially amended.
Amended by R.1991 d.108, effective 3/4/1991.
See: 22 New Jersey Register 3669(a), 23 New Jersey Register 687(b).
Fee simple developments added; standards for full plan of conversion added at (f).