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Court Allows Condominium Association To Restore And Rent Abandoned Unit

A New Jersey Court recently granted a motion filed by Anne P. Ward, Esq. on behalf of a condominium association and entered an Order appointing a Rent Receiver for a condominium unit left vacant by its owner. The owner had moved out of state and refused to pay maintenance fees or take any responsibility for the property. The unit was "underwater" inasmuch as its mortgage was greater than its market value. Since the owner was unable to sell the property, he apparently chose to simply abandon it and avoid his mortgage obligations.

This event created a crisis for the Association because the condominium has only five (5) units and relies upon each owner to pay its share of maintenance to operate. Its operating budget had a very small margin of error to begin with and the Association could not continue to absorb the defaulting owner's costs without experiencing devastating results to its financial health. This is an all too common scenario since the collapse of the housing market and the recession. Thus, the motion was filed to have a Rent Receiver appointed.

The Order vests the Rent Receiver with broad powers over the management of the unit and divests the owner of any control. The Order, among other powers, permits the Rent Receiver to "restore and repair the property to a marketable condition..." and to rent the unit for the benefit of the Association.

If you would like any further information, please contact Anne Ward, Esq. at

Categories: Condominium Law

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