Is A New Statute Of Limitations On The Horizon For Community Association Construction Defect Claims?

• Published date: 21 September 2021
• Subject Matter: Real Estate and Construction, Construction & Planning, Real Estate
• Law Firm: Stark & Stark
• Author: John S. Prisco

Under New Jersey's current statute of limitations, N.J.S.A. '2A:14-1, all construction defect claims, i.e. property damage claims, must be filed within six years from when the potential claimant knew or should have known he or she had a claim. Tempered only by the equitable doctrine referred to as the "discovery rule," which stops the limitations clock from running under certain circumstances, New Jersey's six-year statute applies equally to all property damage claimants. However, a bill working its way through the legislative process in New Jersey may change the game for common interest properties, including co-ops, community associations, and condominiums.

Bill A4903, which was first introduced in October 2020, would amend N.J.S.A. '2A:14-1 to automatically toll the statute of limitations' period for condominiums, co-ops, and other "planned real estate development associations" until an...