N.J. Admin. Code § 5:26-2.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 5:26-2.2 - Exemptions

(a) Unless the method of disposition is adopted for purposes of evasion, the provisions of these rules shall not apply to offers or dispositions:

1. By an owner for his or her own account in a single or isolated transaction;

2. Wholly for industrial, commercial, or other non-residential purposes;

3. Pursuant to court order;

4. By the United States, by this State or any of its agencies or political subdivisions;

5. Of real property located without the State;

6. Of cemetery lots or interests;

7. Of less than 100 lots, parcels, units or interests; provided, however, that, with regard to condominiums, cooperatives or retirement communities, this exemption shall not apply, irrespective of the number of lots, parcels, units or interests offered or disposed of;

8. Of developments where the common elements or interests, which would otherwise subject the offering to the Act, are limited to the provision of unimproved, unencumbered open space;

9. In a development composed wholly of rental units, where the relationship created is one of landlord and tenant;

10. Where the offering is not part of a larger offering and consists of fewer than 10 lots, parcels, units or interests, or where the offering consists entirely of units affordable to persons of low or moderate income, as determined in accordance with the "Fair Housing Act," P.L. 1985, c.222 (52:27D-301 et seq.), and legally restricted to assure continued affordability in accordance with N.J.A.C. 5:14-4, N.J.A.C. 5:80-26, and/or N.J.A.C. 5:92-12, or where the Agency otherwise finds that the enforcement of the Act is not necessary in the public interest or for the protection of purchasers by reason of the small amount of the purchase price, or the limited character of the offering, or the limited nature of the common or shared elements; provided, however, that as a condition of any exemption granted under this paragraph, the developer shall disclose to prospective purchasers, in a format acceptable to the Agency, such information and documentation as the Agency may deem appropriate, including, without limitation, the following:

i. The name, address and telephone number of the developer and of any designated agent;

ii. The total number of units proposed for the entire development and the scheduled completion dates;

iii. The total number of units currently being offered and the date by which the current phase of construction is scheduled to be completed;

iv. The types of units being offered (for example, detached homes, townhouses, apartments, non-residential units) and the number of units being offered in each category;

v. Whether or not there is a flood hazard zone on or adjacent to the site;

vi. Information as to who will control the association and when control by the homeowners will begin;

vii. A statement as to who may use common facilities;

viii. Information as to how a prospective purchaser may review the declaration of covenants and restrictions, the by-laws of the association, and the rules and regulations, if any, governing the operation of the development;

ix. A list of management contracts that are or will be in effect and information as to how a prospective purchaser may review any current management contract or proposed maintenance agreement;

x. A statement of the relationship of the developer to the service provider, if any;

xi. The amount that it is reasonably anticipated that a prospective purchaser would be required to pay, currently and in the near future, for the operation and maintenance of the common facilities, including the amount set aside for reserves, and information as to how a prospective purchaser may review the current budget; and

xii. Information as to how a prospective purchaser may review a copy of the final plat plan, as approved and signed by the local planning board, showing all amenities, facilities and improvements; or

11. Of any form of timesharing.

N.J. Admin. Code § 5:26-2.2

As amended, R.1979 d.439, eff. 11/1/1979.
See: 11 N.J.R. 497(a), 11 N.J.R. 610(b).
Amended by R.1990 d.408, effective 8/20/1990.
See: 22 N.J.R. 1872(a), 22 N.J.R. 2505(a).
Exemptions and conditions for such exemptions added at (a)10.
Amended by R.1996 d.94, effective 2/20/1996.
See: 27 N.J.R. 4478(a), 28 N.J.R. 1226(a).
Amended by R.2007 d.76, effective 3/5/2007.
See: 38 N.J.R. 4970(a), 39 N.J.R. 767(a).
In (a)7, inserted a comma following "that", and deleted ", time-sharing" following "cooperatives"; in (a)10xii, substituted "; or" for a period at the end; and added (a)11.