Bill Text: NJ S1664 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides limit on number of multiple timeshare interests that may be included in a single foreclosure complaint under "New Jersey Real Estate Timeshare Act." *
Sponsorship: Partisan Bill (Democrat 1)
Status: (Engrossed - Dead) 2010-09-13 - Transferred to Assembly Financial Institutions and Insurance Committee [S1664 Detail]
Download: New_Jersey-2010-S1664-Introduced.html
Sponsored by:
Senator ROBERT M. GORDON
District 38 (Bergen)
SYNOPSIS
Authorizes the Judiciary to establish procedures for foreclosure proceedings involving timeshare interests by court rule.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning foreclosure procedures for timeshare interests and amending P.L.2006, c.63.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 17 of P.L.2006, c.63 (C.45:15-16.66) is amended to read as follows:
17. a. Before the first sale of a timeshare interest, the developer shall create or provide for a managing entity, which shall be either the developer, a separate manager or management firm, the board of directors of an owners' association, or some combination thereof.
b. The duties of the managing entity shall include, but not be limited to:
(1) Management and maintenance of all accommodations constituting the timeshare plan;
(2) Collection of all assessments as provided in the timeshare instrument;
(3) Providing to all purchasers each year an itemized annual budget, which shall include all estimated revenues and expenses;
(4) Maintenance of all books and records concerning the timeshare plan;
(5) Scheduling occupancy of accommodations, when purchasers are not entitled to use specific timeshare periods, so that all purchasers will be provided the opportunity to possess and use the accommodations of the timeshare plan which they have purchased; and
(6) Performing any other functions and duties that are necessary and proper to maintain the accommodations or that are required by the timeshare instrument.
c. In the event a developer, managing entity or association files a complaint in a foreclosure proceeding involving timeshare interests, the developer, managing entity or association may join in the same action multiple defendant obligers and junior interest holders of separate timeshare interests in accordance with the Rules Governing the Courts of the State of New Jersey, provided:
(1) The foreclosure proceeding involves a single timeshare plan;
(2) The foreclosure proceeding is filed by a single plaintiff;
(3) The default and remedy provisions in the written instruments on which the foreclosure proceeding is based are substantially the same for each defendant; and
(4) The nature of the defaults alleged is the same for each defendant.
d. In any foreclosure
proceeding involving multiple defendants
filed under subsection c. of this section, the court shall, if appropriate,
sever for separate trial any count of the complaint in which a defense or
counterclaim is timely raised by a defendant.
(cf: P.L.2006, c.63, s.17)
2. This act shall take effect immediately.
STATEMENT
This bill authorizes the Judiciary, by court rule, to establish procedures for foreclosure proceedings involving timeshare interests by amending the "New Jersey Real Estate Timeshare Act." By providing this authority, the bill permits the number of separate timeshare interests that may be joined in one foreclosure complaint to be established by the Judiciary. Under the current law, a timeshare developer, managing entity or association can join large numbers of timeshare owners in one foreclosure complaint. The Office of Foreclosure in the Administrative Office of the Courts experiences substantial administrative burdens in processing complaints that are so structured, and that require only a single processing fee that is disproportionate to the amount of time dedicated to processing these claims. Thus, the current law adversely affects the adjudication of such matters in a timely and cost-effective manner.
By allowing the Judiciary, in accordance with the Rules Governing the Courts of the State of New Jersey, to limit the number of defendants that can be joined in a single timeshare foreclosure complaint, this bill is intended to alleviate the administrative burden on the Office of Foreclosure and increase the ability of the court system to adjudicate such matters in a timely fashion.
