💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

ChrisO6 (Missouri)
Posts: 1
Posted:
Here is the situation. We have a condo cabin/duplex the is zoned commercial and was built for the sole purpose of vacation rentals. The declarant also owns a vacation rental company and wrote in a special section that states only his company can do vacation rentals.

So just vote to change it, right. By default, it takes 67% of owners to change the decs and bylaws...except this one, where the declarant wrote in a special clause that it requires 100% plus declarant approval. We are way past declarant control begin gone, but the declarant purchased 1% of a property and that owner gave up their rights to vote to him...so no way to ever get 100%.

A majority of owners what to remove this exclusive clause from the decs and bylaws, but just cant find a good way without going to court.

Over the last 5-7 years, many people have started to rent on their own and now the board is starting to send out a few violation notices. Oh, the declarant, which his 1%, still sits on the board so he now wants to enforce as more people rent outside of his company.

Does anyone know of similar situations, case law, etc. that might help?
SheliaH (Indiana)
Posts: 6,964
Posted:
If you want legal advice, it's best to talk to an attorney - and with this situation, you'll need one. I would think the only way to turn this around is to convince a judge that this set up is unfair to the rest of the owners and is costing them money, but you'll need hard proof. The other way to do it is to hit the guy in the wallet by selling, but with the current set up, a buyer may be reluctant because one person is basically controlling everything. Good luck to you - you'll need it.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By ChrisO6 on 11/30/2016 5:35 PM

A majority of owners what to remove this exclusive clause from the decs and bylaws, but just cant find a good way without going to court.

Does anyone know of similar situations, case law, etc. that might help?

I don't know of any.
You may very well be setting precedence.

Need to talk to an attorney versed in contract law (as the CC&Rs is a contract between everyone).

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here