sale of unit not in compliance with hoa

The HOA holds the owner to the rules. If that owner has a renter then the owner is responsible for controlling and modifying their rental agreement to agree to the rules of the HOA. The HOA can't enforce rules onto the renter. It has to go to the owner and set up a fining schedule from there.

It depends on what you mean by "sale."

If the unit was sold at a foreclosure auction then the association has no control over who bids. The purchaser is still subject to the CC&R's, but if the CC&R's do not prohibit non-owner occupation (rentals) then there is nothing the association could have done to prevent the sale.

If, however, you mean that the association sold a unit on the open market, the association had control of the terms of the sale and could have refused sale to a person who did not intend to live there.

Along those lines of Steve... A HOA can NOT interfere with an owner's contract.

It is the residence OF the renter. Darn, I wish you could edit these posts.

thanks for all the posts.....this is a great site.

Our HOA allows only 25% rental units and so that's 3 of 14 total.

> So what assurances does the HOA (or other owners) have that when a sale happens it will be within the guidelines of the CC&R's and Bylaws?

Unless your HOA has some special provision- like a right of first refusal- an owner can sell a unit to anyone he wants to.

The restrictions run with the property. It is up to the new owner to comply with them, and up to the HOA to compel him if necessary. By fines and/ or legal action.

Who gets to decide which 3.5 units may be rented? Anything in your CC&R's that requires asssociation approval before an owner may rent out his unit? How does a new owner know how many other units are being rented out? If three units are already rented and a new owner rents his unit out, making four rentals, are the first three owners entitled to continue to rent their units while the newcomer is SOL? If so, what gives one owner different rights to use his property than another?

We just amended our Bylaws to state that the maximum # of rental units is 10% or, in our community 4.7, rounded to 5. Before the newly amended document was recorded in the County Clerk's office, one board member rented out his unit, making the # of rental's in our community 6. Then, after the newly amended document was filed, another Board member leased out his, to make a total of 7. When pressed, the Board is not coming up with why the variance to the 7th rental was granted. Ultimately, regardless of what our documents stipulate, it is up to the Board to enforce the retrictions. Our Michigan Condo Act states that a Co-owner(s) can sue the Board and the Association for not enforcing the deed restrictions, a tough way to fight it out, but if you feel your property values are being comprimised by your Board's inaction, it may be ultimately necessary.

The only state I know of that can allow a HOa to limit rentals is Claifornia. That is even limited to this year forward. A HOa can write all the restrictions it wants in it's docs referencing rentals does not mean it can be enforced. A HOA can't interfere with an owner's contract and renter's have rights.

Rental does not reduce home values in a HOA. They effect them in two other ways. The first being limiting the # of available loan programs. Some mortgages do not sale their products due to rental amounts in a HOA. Can still buy and homes appraisals stay the same, just harder to get a loan. The second is that the apparence can effect the ATTRACTIVENESS of the property. This does not effect home values just buyers losing interest. Otherwise rental property effects the owners directly than the HOA. Damages and maintence issues are t the owner's costs not the HOa's.