Homeowners and township spar over Elks’ lagoon subdivision, quitclaim-deed plan

Nina Mendelson, a homeowner on Sunset Drive, told the Lacey Township Committee she and hundreds of neighbors were surprised and upset when the Elks sought and received planning-board approval to subdivide waterfront property that serves multiple homeowners.

"They went too fast," Mendelson said. "The township never notified any of the homeowners, letting us know that they were gonna do a subdivision." She said homeowners were offered quitclaim deeds and that the Elks have a debt they intend to recoup by charging the lots' purchasers.

The planning board approved a subdivision that, as described at the meeting, would convert a small number of larger parcels held by the Elks into many smaller conveyable lots. Planning-board members and township officials said the board added conditions meant to favor adjacent upland property owners. A planning-board member told the committee the subdivision was intended to make the lots available first to the adjacent upland owners, with other safeguards intended to reduce the chance that a third party would buy large blocks and then charge upland owners for riparian access.

The township attorney explained why the Elks were offering quitclaim deeds rather than warranty deeds. "The only thing that they're comfortable in doing is offering a quitclaim deed, which simply says that any right title that we have, we're happy to convey it to you," the attorney said, adding that chain-of-title questions are not typically within the land-use board's remit.

Homeowners raised specific concerns about title certainty, insurance, and the practical effects on dredging and dock rights. Mendelson said homeowners had pooled money to hire a forensic title company to research ownership and asked the township for assistance in pressuring the Elks and the planning board to re-evaluate the approvals.

Town officials and planning-board members repeated that the land-use board's authority is limited to subdivision and land-use issues, not private title disputes. Officials urged homeowners to pursue title searches and private legal remedies where chain-of-title questions arise.

The committee did not reverse the planning-board action at the meeting. Officials said conditions added by the planning board include giving adjacent upland property owners the first right to purchase and a mechanism to recover the approved price if an upland owner later acquires the lot and the Elks seeks reimbursement obligations on transfer. The township attorney noted that if the Elks do not in fact own particular parcels, they cannot convey them.

Homeowners asked the committee and the township attorney what recourse they would have if a forensic title search shows defects. The attorney advised that title problems would be a private legal matter between the buyer and the Elks and not a municipal enforcement action.

Residents asked the committee to press the Elks to convey warranty deeds or to slow the process while title issues are resolved; the committee said it will review any written submissions and noted that the subdivision approval included conditions intended to protect upland owners.

Members of the planning board and the township committee encouraged homeowners to pursue title searches and to bring written complaints or evidence to the township attorney and to the planning board so they can be considered in any future actions.

Mendleson and other homeowners said they will continue private efforts to research title and said they want warranty deeds rather than quitclaim deeds if parcels are conveyed.