APP.COM - Condo fee at closing legalized under bill | Asbury Park Press Online
Did you hear a loud "KA-CHING"?

FREEHOLD — What started out as litigation here is now legislation in Trenton that will limit but also legalize a standard practice of charging an upfront fee to condominium buyers.

The bill, which has passed both chambers of the Legislature and is now on the governor's desk, will allow condominium associations, only through their master deed or bylaws, to charge a one-time, nonrefundable "capital contribution fee" upon closing.

For condo associations, charging this fee is nothing new. However, the bill, if signed, will allow associations to charge up to nine times the amount of a unit's monthly maintenance fee, in addition to legally protecting the practice. The amount was amended in the Senate from 18 times the monthly maintenance fee.