Association Board approval for purchase or lease

RobertF (Florida)
Posts: 21

Posted:

Our Condominium is still in the transient phase. We have 22 Units, with 8 being for sale. Of these 8, there are 2 that have never been lived in and 6 being turned over for the first time. During the past year we have had 2 units being leased for different periods of time. As a member of the Board I would like to see an amendment to our declarations where we are given the opportunity to review prospective buyers or those intending to lease. We have had situations where a unit was leased to an indivdual who intended to run a business from it. This is against the rules of our declarations (each unit is designated as residential use only), but the owner wanted to get the unit rented. Can someone supply me with the words that could be used to amend our declarations to give the Board the authority to review prospective buyers or renters?

RogerB (Colorado)
Posts: 5,067

Posted:

Robert, I doubt you have the right to review prospective buyers or renters. But you may be able to pass Rules and Regulations requiring specific wording in any home sale or lease which will protect the assocation's needs. Following are R&Rs we use for Sellers:

Rules and Regulations on Home Sales

An Owner who is selling their property shall be responsible for providing required Association documents to a potential Buyer of their property. Upon request by the Seller or their authorized representative, the Association will make every effort to provide copies of the following documents, and others if requested. Costs involved for providing copies shall be paid by the Seller.

Declaration (Covenants) and all amendments thereto;
Articles of Incorporation and all amendments thereto;
Bylaws and all amendments thereto;
All current Rules and Regulations;
ARC Modification request form;
Minutes of the last Annual Homeowners meeting;
Minutes of all Board meetings during the past six months;
The Association’s annual operating budget;
The Association’s annual Income Statement; and
The Association’s annual Balance Sheet.

The Seller shall provide a potential Buyer with a written Disclosure Statement. The Seller shall secure the Buyer’s, or the Buyer’s authorized representative, signature on the Disclosure Statement to acknowledge receipt of the Disclosure Statement. The Seller shall be responsible for providing a copy of a signed Disclosure Statement to the Association upon title transfer of the property. The Disclosure Statement shall be in bold-faced type that is clearly legible and in substantially the following form:

"THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS RECEIVED COPIES OF THE DECLARATION, COVENANTS, BYLAWS, RULES AND REGULATIONS AND ARC MODIFICATION REQUEST FORM FOR THE ____________________ HOMEOWNERS ASSOCIATION, INC., IN WHICH THE PROPERTY IS LOCATED. THE BUYER UNDERSTANDS THAT THESE DOCUMENTS CONSTITUTE AN AGREEMENT BETWEEN THE ASSOCIATION AND THE BUYER, BY SIGNING THIS STATEMENT. THE BUYER ACKNOWLEDGES THAT THE BUYER HAS READ AND UNDERSTANDS THE ASSOCIATION'S DECLARATION, COVENANTS, BYLAWS, RULES AND REGULATIONS, AND ARC REQUEST FORM. THE BUYER ALSO UNDERSTANDS THAT BY COMPLETING THIS PURCHASE, THE BUYER IS RESPONSIBLE FOR PAYING ASSESSMENTS TO THE ASSOCIATION. IF THE BUYER DOES NOT PAY THESE ASSESSMENTS, THE ASSOCIATION COULD PLACE A LIEN ON THE PROPERTY AND POSSIBLY SELL IT TO COLLECT THE DEBT. THE BUYER ALSO UNDERSTANDS THAT ANY MODIFICATION TO THE EXTERIOR OF THE PROPERTY IS SUBJECT TO ARCHITECTURAL REVIEW AND APPROVAL BY THE ARC USING THE ARC REQUEST FORM. FAILURE TO SECURE SUCH REVIEW AND APPROVAL IS A VIOLATION OF THE DECLARATION AND COULD RESULT IN REMEDIAL ACTION BEING TAKEN BY THE ASSOCIATION."