New Jersey § 46:8b-32

§ 46:8b-32.

There is hereby established a rebuttable presumption of unconscionability with respect

to leases involving condominium property, including, but not limited to, leases concerning

the use by condominium unit owners of parking, recreational or other common facilities

or areas. Such presumption may be rebutted by a lessor by the presentation of evidence of

the existence of facts and circumstances sufficient to justify and validate a lease

which would otherwise appear to be unconscionable under the provisions of this section. A rebuttable presumption of unconscionability shall arise if one or more of the

following elements exist, but the failure of a lease to contain any of the following

elements shall neither preclude a determination of its unconscionability nor raise

a presumption of its conscionability: a. The lease was executed by persons none of whom at the time of the execution of

the lease were elected by condominium unit owners other than the developer, to represent

their interests; b. The lease requires either the condominium association or the condominium unit owners

to pay real estate taxes on the subject real property; c. The lease requires either the condominium association or the condominium unit owners

to insure buildings or other facilities on the subject real property against fire

or any other hazard; d. The lease requires either the condominium association or the condominium unit owners

to perform some or all maintenance obligations pertaining to the subject real property

or facilities located upon the subject real property; e. The lease requires either the condominium association or the condominium unit owners

to pay rents to the lessor for a period of 10 years or more; f. The lease provides that failure of the lessee to make payments of rents due under

the lease either creates, establishes, or permits establishment of, a lien upon individual

condominium units of the condominium to secure claims for rent; g. The lease requires an annual rental which exceeds 20% of the appraised value of

the leased property as improved; provided that for purposes of this subsection “annual

rental” means the amount due during the first 12 months of the lease for all units

regardless of whether such units were in fact occupied or sold during that period

and “appraised value” means the appraised value placed upon the leased property the

first tax year after the sale of a unit in the condominium; h. The lease provides for a periodic rental increase based upon reference to a price

index; i. The lease or other condominium documents require that every transferee of a condominium

unit must assume obligations under the lease.