Rental Restriction in Las Vegas Nevada

JayS3 (Nevada)
Posts: 1

Posted:

We just bought a single family investment home in North-West Las Vegas (HOA - Tapestry at town center)

In the CC&Rs my property is under rental restriction which our agent gave us 2 days before closing.

In the CC&R they have my parcel # (125-17-310-132) on rental restriction, but no specific street address or house number. They never specified directly in any disclosure that there is a rental restriction.

The loan papers and escrow documents all says that we are investors and the home will be used as income generating property.

We have contacted the HOA with a disclosure that they have sent along with the original CC&R package which states some thing like this under rules and regulations...

"Does the CA (Community Association) have the right of first refusal if I rent or sell my home? ----- No (answer) "

The answer to the above rules is a "No" which clearly contradicts with the deed for rental restriction on certain parcel numbers in the HOA generated in 2004/2005.

Since then I have tried to contact the HOA office but have limited answer. We have prospective screened tenant willing to rent for a year.

We are very confused and don't know what to do.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By JayS3 on 11/01/2010 5:13 PM
We just bought a single family investment home in North-West Las Vegas

Having closed the deal, you agreed to comply with the covenants of the Association.

The Association, unless it is still under control of the developer and you purchased from them, would have zero knowledge of what was on the paperwork indicating that you were purchasing investment property.

Due to recent changes in FHA guidelines, many Associations have started looking at rental restrictions (just do a search here and you will see it discussed several times). The FHA guidelines came out of the many bills that were adopted by congress to correct the housing sales issue. My understanding is that these guidelines were developed so lenders have a better understanding if an Association would need to levy a special assessment, thereby possibly causing hardship on the borrower which could cause them being unable to satisfy the loan payments.

My Association chose not to place rental restrictions because we were already above the recommended limit and concerned that those who were already renting might bring legal action if the Association started telling them they had to sell the home, move back into it or let it sit empty.

You were made aware of the guidelines prior to the sale of the home. Granted two days is not really enough time to properly review them and decide to go ahead with the purchase or not. However, legally you were informed of the restrictions prior to purchase and by purchasing agreed to them.

I see you as having the following options:

1. Request a waiver from the association.
2. Decide to ignore the restrictions and deal with any consequences (fines, legal action, etc.) from the Association.
3. Renovate and see if you can sell the home for a profit.
4. Move into it and use it as a second home.
5 Get involved with the association and work to change the guidelines to remove the restrictions.
6. Seek a legal opinion for any possible legal recourse.

I know that this isn't what you wanted to hear. Perhaps others on here will see other options for you.

Tim