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Stuart Lieberman
Stuart Lieberman, Esq.
liebermanblecher.com

*NJ Deputy Attorney General assigned to the State Department of Environmental Protection from 1986 - 1990.
*Partner in the environmental law firm of Lieberman & Blecher, P.C. in Princeton, New Jersey
*Lectures for the N.J. Institute for Continuing Legal Education (ICLE), and is available for other speaking engagements through the year.


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THE ENVIRONMENT
Condo Purchasers Note Environmental Defects
Stuart Lieberman, Esq.,

Many parts of this country favor condominium ownership. Condominiums offer an efficient form of real property ownership. And sometimes they are a more affordable alternative (although many condominiums are not by any means inexpensive. )

A typical benefit of living in a condominium is that a unit owner is only responsible from the finished walls in. An association is responsible for everything else.

And for a lot of people, that is a kind of simplicity that makes sense. Let the association worry about roof repairs, parking lot repavement, and changes to the pool filter.

However, you should know that when you're purchasing a condominium, hidden environmental defects that might affect the entire association, may prove to be a problem for you down the road. This is so because a condominium association may have to "special assess" the cost of repairing or addressing significant environmental problems.

Special assessments are one of a kind charges imposed by an association to meet abnormal expenditures. A steep environmental problem can result in a steep assessment.

For example, many condominium associations have underground storage tanks that serve each unit. If the tanks are owned by the association, rather than by the individual unit owners, then a problem might arise if the tanks start to leak.

This is not theoretical; I have been involved in cases where condominium associations have had to address numerous leaking underground storage tanks. This can cost in the hundreds of thousands of dollars and may result in substantial special assessments.

Prospective purchasers of a condominium want to know about this potential before they purchase. After the purchase may be too late - it then becomes the new owner's headache.

That does not necessarily mean that you should not go forward with a purchase under these circumstances. It simply means that you need to be fully informed before you make such an important decision.

Maybe this is fine. Maybe it suggests that the purchase price needs to be reduced. Maybe you need to negotiate a resolution where the seller is responsible for any special assessments that occur even up to six months after the real property transfer.

What are other environmental issues that can affect the condominium association? Lead paint. Asbestos removal. Leaking furnace oil tanks. Problems with wells that service the community. Problems with this trash disposal. Problems with recycling. Sick building syndrome claims.

The list is just about as unlimited as is the field of environmental law. And it doesn't really matter what the claim might be. What matters is that purchaser must be informed before purchasing.

First, look at the minutes of the condominium before you purchase. Is there any discussion about environmental issues or environmental claims? Second, speak to the management company before you purchase and don't be afraid to ask questions. Third, speak to the unit owner. You might even need a statement from the unit owner that he or she is not aware of claims that may affect the association.

Condominiums are certainly a wonderful and efficient form of property ownership. But if the association is troubled, including environmentally troubled, those troubles will become your troubles after you purchase. The trick is to ask the right questions, before the closing, not afterwards.

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The information provided in this column is written by Stuart Lieberman,a practicing environmental attorney, and is for general information purposes only. It is not legal advice and should not be used in place of legal advice.

Stuart Lieberman, Esq., and IRED.Com, Inc., will not accept any responsibilty for any reliance on the information in this column or any damages whatsoever resulting from reading this column.


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