The recent New Jersey court decision regarding age-restricted 55+ communities clarifies the distinction between property ownership and residency in these living environments. Understanding this ruling is essential for current and future homebuyers to avoid legal complications.
What the Ruling States
The court ruled that while Homeowners Associations (HOAs) in 55+ communities can regulate who lives in a unit, they cannot restrict who can own a unit. This means that someone under the age of 55 can purchase a home in a 55+ community, even though they are not permitted to live in that residence.
Why this Ruling Matters
This ruling honors the intended lifestyle and community’s age-restricted residency requirements of 55+ communities, while providing flexibility in property ownership. This allows for a broader range of people to invest in these communities, whether as future residents, long term investors or as part of an estate plan.
Adult children may purchase property for their aging parents with the understanding that only their parents can live there. On the other hand, someone planning for their retirement might buy a home in a 55+ community in advance, knowing they cannot move in until they meet the age requirement.
Conclusion
Whether you’re considering buying a home in a 55+ community or already own one, it’s important to stay informed about how these regulations may affect you.
At UBFK Law, we understand the significance of your Real Estate endeavors. Our firm offers tailored legal solutions for Residential Real Estate transactions, ensuring that your interests are safeguarded throughout the process. Contact UBFK Law today for all your real estate legal needs.
Resources:
For More Information on the New Jersey Court Decision regarding age-restricted 55+ communities click here.
For More Information on Homeowners Associations (HOA) click here.