I had the same problem until I started doing this...
I do a lot of copy/paste from an assessment layer to a development application layer.
Enter the edit session as you would normally and choose the layer to edit.
(Now I'm going to give the steps for what I do but I would imagine they can be modified for what you do) (See graphic attached as well)
1. Click on parcel that I want to copy and right click "copy"
2. Right click "paste" - The paste popup window appears to select the target layer. Choose target layer. Click OK.
3. There may be a "Create Features" window on the right. If not click on the icon to open it.
4. Click on the layer listed there.
5. This populates the "Construction Tools" portion of the window.
I found that if I didn't click on the layer in the "Create Features" window I would always get the error. That is because you need to be using a "Construction Tool" in order to do any editing.
Hope this helps.