N.J. Stat. Ann. § 46:8C-1 et seq. § 46:8C-13
Rights not applicable to certain sales, etc
Operative Text
4. The provisions of sections 2 and 3 of P.L.1991, c.483 (C.46:8C-11 and C.46:8C-12) shall not apply to: a. (Deleted by amendment, P.L.2025, c.362) b. Any sale or transfer to a family member of the landowner. c. Any transfer by gift, devise, or operation of law. d. Any transfer by a corporation to an affiliate. As used herein, "affiliate" means (1) any shareholder exercising control, or control through attribution as defined pursuant to section 318 of the Internal Revenue Code, of the transferring corporation; (2) any corporation or entity owned or controlled, directly or indirectly, by the transferring corporation; or (3) any other corporation or entity owned or controlled, directly or indirectly, by any shareholder of the transferring corporation. For the purposes of this subsection, control shall mean control as defined in section 304 of the Internal Revenue Code. e. Any transfer by a partnership to any of its partners, whether general partners or limited partners, or partners or individuals to a corporation where the control of the corporation is substantially the same. f. Any conveyance of an interest in a private residential leasehold community incidental to the financing of that community. g. Any conveyance resulting from the foreclosure of a mortgage, deed of trust, or other instrument encumbering a private residential leasehold community, or any deed given in lieu of such foreclosure. h. Any sale or transfer between or among joint tenants or tenants in common owning a private residential leasehold community. i. The purchase of land of a private residential leasehold community by a governmental entity under its powers of eminent domain. j. Any sale which occurs as a result of a condominium or cooperative conversion. k. Any sale of real estate owned by the private residential leasehold community landowner which is adjacent to the private residential leasehold community land but does not have appurtenant to it private residential leasehold sites or spaces or related recreational facilities. L.1991,c.483,s.4; amended 1995,c.365,s.4; 2025, c.362, s.7.
Section 46:8C-13 of New Jersey law carves out a list of transactions that are exempt from the tenant-protection requirements established in sections 46:8C-11 and 46:8C-12, which govern sales of private residential leasehold communities. These exemptions cover a broad range of transfers—including sales to family members, gifts, corporate affiliate transfers, foreclosures, eminent domain acquisitions, and condominium conversions—where the legislature determined the standard sale-notification and purchase-opportunity rules need not apply. In short, the rights that would otherwise attach to a community sale simply do not arise when the transaction falls into one of these enumerated categories.
Plain English — not legal advice.
Operators and owners of private residential leasehold communities should be aware that § 46:8C-13 identifies specific transaction types—such as transfers to family members, affiliate corporations, partners, or through foreclosure or eminent domain—that fall outside the obligations imposed by §§ 46:8C-11 and 46:8C-12. A compliant operator generally documents the nature of any proposed transfer carefully to confirm whether it qualifies for one of these exemptions before concluding that tenant-notification or purchase-opportunity requirements are inapplicable. Where a transfer involves a corporate affiliate, operators typically verify that the relationship meets the Internal Revenue Code definitions of control referenced in § 46:8C-13(d).
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 46:8C-13, residents of private residential leasehold communities should understand that the protections provided by §§ 46:8C-11 and 46:8C-12—such as notice and purchase-opportunity rights—do not apply when a sale or transfer falls into one of the listed exempt categories. If a landowner claims an exemption, tenants may want to review the specific transaction type against the categories enumerated in § 46:8C-13 to assess whether the exemption is properly invoked. Tenant-rights organizations and legal aid services familiar with New Jersey leasehold community law can help residents understand whether a particular transfer genuinely qualifies for an exemption.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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