How to ensure condo buyers read restrictions before sale?

Respectfully I doubt that this rule has been suggested by a lawyer. Your state condo law probably provides for compulsory disclosure packages (consumer protection) like status certificates/estoppel documents etc which trumps onsite attempts to somehow override what the legislatures have insisted be supplied to the public. Isn't it more realistic to leave diligencing to buyers, their counsel and lenders, and to the state legislatures which likely legislate compliance. Anyway could a mere onsite Rule trump legislated rights of property alienation ?

Attempts to retroactively impose re-transfer restrictions are probably similarly trumped including as fundamental restraints on trade and on freedom to contract. Some states have tolerated re-transfer fees derived from declaration documents.

Attempts to totally prohibit condo leasing in our jurisdiction have been struck down but not restrictions on duration of leases. But how easy is that to enforce if the PMC is running a rental pool with prime client the declarant who may still control the largest voting block or may share a voting majority with other absentee landlords. Thousands of units are rented buckshee style without compliance with onsite registrations here.

Both these could be illuminated by your lawyer.

Bob D ( not in New York but nearby )

Frank

It seems the issue is short term, over night rentals. Reading/signing all the docs in the world will no stop this.

I suggest you investigate rental restrictions like no home can be rented within a year of purchase and/or the minimum rental period is 180 days. Changes like this are easy to make as most owners will go along with them.

Rule not suggested by lawyer, but will be submitted to one we have consulted with recently.

Also, we are not trying to override laws, just trying to be transparent and avoid lawsuits and dischord with folks who may not do due diligence before buying. A new owner did not ask about open fire grilling when he bought his unit, so thought it was OK. Local fire code prohibits this, but the BoD has not seen fit to include this as a Rule so that buyers/owners can clearly understand the reality.

Bob, appreciate your reply, but using terms like "probably provides" and "probably similarly trumped" is hard to deal with. We can try to include your points to the lawyer though. I have looked at these Indiana documents, but do not find anything in them that sheds light on my question:
IC 32-25 ARTICLE 25. CONDOMINIUMS http://iga.in.gov/static-documents/0/4/c/7/04c7fe3c/TITLE32_AR25_ar25.pdf
IC 32-25.5-3 Chapter 3. Homeowners Associations http://iga.in.gov/static-documents/1/4/b/8/14b8622b/TITLE32_AR25.5_ar25.5.pdf

I have confirmation that at least one other condo HOA in our area has rent restrictions (believe it is a total ban). Also, there is this case:
http://docs.justia.com/cases/federal/district-courts/indiana/inndce/3:2008cv00283/54867/107/0.pdf?1301675677 Two lawyer/owners brought suit when their HOA prohibited rentals (not sure if it was "total") 3 years after they bought their investment condo. They lost the case.

Our foundation documents are unofficially online at my website. BoD has discussed, but not yet moved to have them available on an "official" HOA site.

We are not trying to prohibit the current daily rental unit, but control the growing number of regular rentals and prohibit any more "hotel" type renting.

The main Amendment/Rule being considered will probably be something like this:
RENTAL OF PROPERTY. This rule is binding on units purchased after November 1, 2014.
RENTALS ARE ALLOWED, but only after two years have passed from the date of the sale of the unit. Units can not be rented for a period of less than six consecutive months. THE owner's LEASE AGREEMENT SHALL REQUIRE:
*Residency by one family only or NO MORE THAN TWO UNRELATED ADULTS
*TENANTS TO COMPLY WITH ALL RULES AND REGULATIONS OF THE COMMUNITY AND ASSOCIATION, INCLUDING ALL DECLARATIONS AND BY LAWS, AND AMENDMENTS THERETO.
(the UPPER CASE wording is text already contained in the present 11 year-old set of Rules.)

Ours is a small community (less than 3 dozen units), so tracking what is going on isn't a big deal, though almost all sellers disregard the rule to inform the BoD if they put their unit on the market. BTW, I thought the "Units can not be rented for a period of less than six consecutive months" rule might stop future airbnb intrusions.

BTW, for those interested: www.ag.ny.gov/pdfs/Airbnb%20report.pdf NY Attorney General- "Airbnb in the city"

How do you plan to enforce that in reality?

"You were supposed to tell us before you sold your home"
"Oops. Sue me"

Then what?

The bottom line is BUYER BEWARE. You can't protect against those people who refuse to do their homework and learn about the location where they're about to invest a ton of money. To those people, I say too damn bad.

Yup Buyer Beware doesn't apply when developers don't follow the laws how to turn over a HOA or just makes a HOA deed restriction to keep someone from building a small house of 900 sq ft in a development of $200k and over priced houses of over 2k sq ft and leaves it up to the community to decide if they want to form the HOA once it's reach's the restrictions amount of land developed. yet if the developer doesn't incorporate any deed restriction in their closing documents, it's going to be hard to get the land owners to voluntary established one due to all the threats of legal actions against the developer for all kinds of actions that the developer would most like dissolve the HOA due to the huge legal cost they know that's coming.

Along comes a new developer builder buys up land around the Community and instead of using a different name just uses your community name even builds a new access entrance to their community and then sends you a bill for HOA due's with our community HOA name and then we challenged them as what HOA and they check their legal records and affirms it and sends a apology letter and then forms their own HOA with a similar named of our restriction HOA name and actually executes it and formed it up..

Then many years later their HOA fires their property management company and then illegally gives them our address's and names as being in it to their new property management company which then sends our section a threatening letter about violating a State law by not providing 4 pages of personal information on everyone in your household and paying past dues they said our section owed them demanding personal information as where they go to school their work address personal references and their works and phone contacts and then ending their threatening letter with a clever tactic By Voluntary JOINING our community your making our neighborhood an more enjoyable place to live. they tried to be slick and add in wordage like by; BY Joining, Voluntary Joining our Community... this after them threatening legal action for past dues and not providing personal information within 30 days their HOA started up 10 years ago, yet in that section of that they wanted you to sign you agreement you joined their named HOA.

heard a rumor the newest Management company is walking away from their mess seems that HOA changed their name before contacting them and made it the name of the Community, after numerous of us actually started the process to sue them by mitigating with them first to settle it and saying by this date or we'll start the legal process and boy did we get a fast response that they reviewed everything and agree were not in it once again.. but love to know how much their legal billings is goanna cost them still. they didn't learn the first time they tried this with us.

To that HOA, I say too damn bad. but that was a nice try of that company using verbiage like by Joining and later in the letter by voluntary joining. it was almost like they knew we were not in their HOA but used some threatening language and then using words like joining and sign here to acknowledge your in a HOA.

well try reading it again something like this was quoted: The bottom line is BUYER BEWARE. You can't protect against those people who refuse to do their homework and learn about the location where they're about to invest a ton of money. To those people, I say too damn bad.

Just because there is a HOA deed restriction recorded doesn't mean it's valid and your in a HOA, there's a lot of things if the developer doesn't do it's almost unenforceable to do unless their gullible people that takes another persons word and voluntary join one based upon false and misleading threatening letter and then placing wordage like "By Joining" and "By Voluntary joining", like that HOA tried pulling again but this time it cost them lots of money trying it again.

Wouldn't doubt that's one of their oldest tricks in the books if they can't legally force you into one and then sends a strong letter but add verbiage like by joining or voluntary joining. you can't go after them after you Voluntary joined their HOA because they cleverly worded to make it legal since they used trickery wordage's. Once your hooked your fried fish.

Besides there are numerous community's with numerous HOA's and some sections in them that's Not under a HOA but has a deed restriction naming a HOA but due to improper things the developer did/ or did not do are unenforceable till the ones not in HOA starts one up or joins an existing HOA already established in their community but in different subdivisions. like that one community with 9 sections yet 2 of them are under a HOA but each ones different from each other but when they signed their agreement with the city they assumes the entire community properties even those 7 sections that are not under a HOA but has a deed restriction that was improperly documented or executed before the developer left the community.

that HOA in our community just tried intimidation and then tried to slip in wordage to get you to Join.

so in basic wordage developers that refuses to do their home work and not crosses their t's and dots their eye's on the legal process of forming a HOA and further sections building in your community HOA's Beware don't just think there is a deed restriction you can force others into it. that's why they used words like by Joining or voluntary joining and sign here to acknowledge your in a HOA.

The bottom line is BUYER BEWARE. You can't protect against those people who refuse to do their homework and learn about the location where they're about to invest a ton of money. To those people, I say too damn bad. Comments like that gives HOA a Bad reputation, some times it's the developers that don't do their homework's why should the lot owners pay for the developers mistakes 10 20 30 years later?? surprise surprise surprise your in our HOA by golly!!! errr wait guess your not here sign here and join us wink wink pulls wools over eyes.

Hello it was not to the OP it was quoting the poster that said this....

The bottom line is BUYER BEWARE. You can't protect against those people who refuse to do their homework and learn about the location where they're about to invest a ton of money. To those people, I say too damn bad.

Hello... Just replied and clicked that Quote button not a response button to the OP post hello.

Bottom Line is Developers screws up at times and most are on purpose they just want a deed restriction to prevent some other builder not to place an inferior house on their development they made nothing to do with making a HOA they just need a HOA name to place in them. It's not due to ignorant buyers that don't do their research most developers that slaps in a HOA clause at the last minute you know your goanna be taken for a ride since their dishonest but did everything up to that point and deceived buyers. some times it back fires on them. Just because some HOA that developed around your community and sends you false information and then slips in their demands it's By joining Voluntary into their community.

Or if a developer plans are ruined by another builder that under handed them and bought up the surrounding property's to prevent them from expanding their development and then that builder gets the last laugh at the under handed attempt. Last laugh last 10 years been on that developers Management company's. You can't force a section that not transferred to your new developers plat's has to be recorded as being transferred that's why some HOA does the sneaky way to threaten you and get you to voluntary join then demand you sign here to acknowledge your in a HOA. pretty dirty trick on the weak minded. except the whole section just tossed it in the trash except one lone wolf that loved a good fight.