In Mazdabrook Commons Homeowners' Association v. Khan, the New Jersey Appellate Division recently overturned a lower court dismissal of a unit owner's counter-claim regarding freedom of speech violations against a homeowner's association. The Appellate Division held that the community association's restrictions regarding posting signs was not reasonable.

The Association had a prohibition of all window-signs in condominium units except for one "For Sale" sign. Khan testified at trial that after seeing election signs in the window of the complex's model unit, he placed his own election poster in a window of his house. After it had been placed for two or three days, he received a notice that the poster was prohibited, and he was directed to remove it within three days. Khan testified that he did in fact remove the poster, however he was fined $75.00 anyway.

The Court noted that the Association had "imposed an almost total ban upon the placement of signs by unit owners inside or on their units, excepting only one "For Sale" sign on the interior of the unit." The Court opined that the restriction was not content neutral, and favored commercial speech. The Court further found that the restriction regulates the free speech rights of residents within their own condominium units. As a result, the Court found that the Association's sign restrictions were unconstitutional.