Local Law Blogs

Recent Amendments to the Predatory Towing Prevention Act

By Mary W. Barrett

If your New Jersey community association tows vehicles from its private parking areas and roadways, it should be complying with the Predatory Towing Prevention Act ('Act').  Signed into law in October 2007, the Act primarily increases oversight of tow companies but also regulates a private property owner in towing vehicles from the premises without the vehicle owner's permission.  A community association is included in the definition of private property owner and must comply with the Act.
 

Many of the provisions of the Act as originally enacted were particularly problematic to community associations.  The Act was amended in 2009; several changes benefit community associations.  Following are the main things you should know before you tow vehicles from privately-owned community association property:  

1) The tow company must have a towing contract with the community association. 

2) The tow company must be in compliance with the Act

3) Signs must be posted.  If you are towing from unassigned parking spaces or other common property these signs must be at least 36 x 36 inches in size, must be conspicuously posted at all vehicle entrances to the property, and must include the following information:

• the purpose for which parking is authorized and time during which parking is permitted,
• that unauthorized parking is prohibited and unauthorized vehicles will be towed at the owner's expense,
• the name, address, and telephone number of the tow company,
• the charges for the towing and storage of vehicles,
• the address of the facility where towed vehicles can be redeemed and the time during which vehicles can be redeemed, and
• contact information for the Department of Community Affairs.
• The signage requirement is simplified if a residential community association is enforcing parking in assigned spaces as long as the parking spaces are clearly marked as assigned and the community association has specifically documented approval authorizing removal of a particular vehicle.  The simplified sign required in this case must be posted in a conspicuous place at all vehicular entrances and state that unauthorized parking in an assigned space is prohibited and unauthorized vehicles will be towed at the owner's expense, and provide a telephone number enabling vehicle owners to immediately obtain information on towed vehicles.  The size of the sign is not specified in the Act except that it must be easily seen by the public. 
• No sign is required if the vehicle to be towed is blocking access to a driveway or garage entrance. 
• Vehicles must be towed to a secure storage facility located within a reasonable distance from the community association.
• A property manager or board member does not need to be present when towing occurs (although the tow company may have its own requirements). 

           
While the Act has been relaxed slightly with regard to community associations, there are still important legal requirements that must be carefully followed.  To ensure your community association is in compliance with the Act, you should consult with your legal counsel.

Full post as published by New Jersey Law Blog on March 18, 2010 (boomark / email).