Change in covenants

Our HOA oonsist of 79 homes in SC. We have had some problems with Real Estate agents buying homes to rent and we get some really undsirable people. We have gone to an attorney and worked up changing our covenants to read for one thing that homes canot be purchased as an investment with plans to rent. The main question is: Our covenants state we must have 75% of the homeowners to vote yes for a change. This attorney says we need every signature witnssed and notorized. Is this correct?? Our covenants do not state that we have to have them notorized. It only gives us the correct way to handle it...

Hi Ruth:

I strongly concur with Tim to consider the option that an owner cannot rent their home until they have owned for two years. Consider the following two reasons:

1. Having to own for two years eliminates those individuals purchasing only to rent.

2. Keep in mind at some time you or other homeowners may be unable to care for yourself and need to live with a relative or in a nursing home. If your children cannot sell your home they may need to rent for a short time in order to pay the mortgage to keep the home from foreclosure.

The homeowners need to consider that their decisions now can affect certain aspects in the future and everyone needs to consider all options and concerns.

As a general rule you do not need the vote/signatures notarized. Potentially as Tim suggested this is an idea from your attorney in order to eliminate potential legal litigation. In essence if you have 75% vote yes with notarized signatures then it could not be challenged or if it was challenged a court of law potentially would definitely rule in favor of the HOA.

We are really not trying to end rentals alltogether. Rentals now will be grandfathered and if a homeowner puts their home on the market and it does not sell in 6 months, the Board can approve a "hardship" rental for 12 months. If the house comes up empty after 12 months, the owner must then put back on the market for 6 months to sell. Our biggest problem is our area is mainly retirees and we have a home that is being rented to 6 college girls! These are average size homes with postage stamp lots, so cars are parked eveywhere, but since it is a city street, there is not much we can do there. That is why we are trying to do something that will control renters, but yet put into our covenants a way for a homeowner to rent in case the house does not sell in a 6 month period. We had made a change previously in our convenants and our attorney did not mention having signatures witnessed and notorized, so it seemed strange that we needed to do it this time. As most areas, we only have about 1/3 homeowners that actually come to our meetings, so it will be difficult going to homes with someone to witness and notorize their signature...