Legislation sponsored by Senator Robert Singer that would prohibit common interest communities, such as condominium associations, from penalizing members who place a unit into a living, revocable trust fund was approved today by the Senate Community and Urban Affairs Committee.
Legislation sponsored by Sen. Robert Singer that would prohibit common interest communities from penalizing members who place a unit into a living, revocable trust fund was approved today by the Senate Community and Urban Affairs Committee. (©iStock)
“There are far too many examples of retirement communities extracting large fees from members for making ordinary financial decisions about their property,” said Singer (R-30).“This legislation would protect individuals, especially senior citizens, living in a homeowners’ association, condominium association, or other cooperative, by prohibiting the association from charging unreasonable fees or penalties if a member places their unit into a trust.”
Under Singer’s bill, S-3463, the placement of an association member’s unit or assets into a living, revocable trust fund would not constitute a title transfer for the associations’ purposes.
Under current law, some associations can derive a financial benefit when an association member sells or transfers a unit, including placing their unit into a living, revocable trust.
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