Life Estate

Started by KateS2 • 12 replies • 682 views

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KateS2 (Connecticut)
Posts: 41

Posted:

We have a gentlemen living in this park for over 15 years. We do not let anyone rent, must own their units. It was brought to my attention that he sold his mobile to his daughter with a life estate. Has anyone run into this kind of situation? I know our rules and reg's say must own. His is elderly gentlemen also and lives alone. Would you just let it go and do nothing, or take away just his voting rights?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Make sure your state allows your HOA to not allow rentals. You may be surprised that HOA's can't necessarily restrict rentals. It may be in your documents but they have to be compliant to the law.

Is he paying his dues or is his daughter? Need to know who to go after if need be later. Just don't let him vote. His daughter will.

This doesn't sound far off from the Hugh Hefner situation. He sold the Playboy mansion but had an arrangement with the new owner to let him live there till he died. So that is what happened. Don't see it as a big deal if he wants/needs to live his life out there.

Former HOA President

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Quote:

Posted By KateS2 on 02/22/2019 4:02 AM
We have a gentlemen living in this park for over 15 years. We do not let anyone rent, must own their units. It was brought to my attention that he sold his mobile to his daughter with a life estate. Has anyone run into this kind of situation? I know our rules and reg's say must own. His is elderly gentlemen also and lives alone. Would you just let it go and do nothing, or take away just his voting rights?

Hi Kate,

This is interesting. If the father sold the home to his daughter but kept a life estate provision so that he can live out his life on the property, I would not consider that a "rental" or "investment property." It appears to be a reflection of estate planning and could reveal a hole in the HOA rules.

As far as voting goes, the deed holder gets the vote. So, the daughter becomes the person of contact and is responsible for dues, etc. But, use common sense here as well if the gentleman is a good neighbor w/ a track record of compliance to rules and dues paying.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Many times, even if there is a rental restriction in the CC&s, it allows for exceptions for first-degree relatives (parents, children, siblings). Also, there can be issues when dealing with elderly residents, and an HOA needs to tread carefully. I'd recommend educating yourself about the issues involved and any relevant court cases in your state.

RoyalP
Posts: 1,104

Posted:

A 'life estate' is a type of ownership and may actually be sold in and of itself.

ask the BOD for an opinion from the corporate attorney

or

seek agreement within the world wide web

SamE2 (New Jersey)
Posts: 310

Posted:

Is anyone complaining about the situation? If not I would ignore it. If there is a complaint I would ask that person to provide the proof that the owner is renting the place. The guy is doing estate planning and that is a good thing for him and his heirs and I can't see how it hurts the community.

LetA (Nevada)
Posts: 2,679

Posted:

Word to the wise, LET IT GO..... Take no action, Smile, accept their association assessments and lot rent, smile and say thank you. If you're going to the grocery store, ask the elderly gent if you can get deeming for him.

LetA (Nevada)
Posts: 2,679

Posted:

Something err

AugustinD
Posts: 5,144

Posted:

I think this is a legal hybrid of sorts. I would let him stay. But I believe legally the daughter is entitled to the voting rights.

GenoS (Florida)
Posts: 4,276

Posted:

Heaven knows Connecticut is not Florida, but FL DBPR Arbitration Case 2004-00-2794 concluded that:

"In his capacity as a life estate holder, Mr. Projan is entitled to the use and enjoyment of his unit, which includes rights provided to the unit owners via the governing documents, for instance, the ability to vote on association matters and eligibility as a board member. Therefore, Mr. Projan, as a life estate holder, is eligible to be a board member."

Nothing in the interveing 15 years has contradicted that.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

If push came to shove, the daughter could give her Dad a Power of Attorney or a Proxy for him to vote.
Easy Peasy

SueW6 (Michigan)
Posts: 814

Posted:

Most likely they signed a Life Estate Deed, in which the daughter takes possession at his death.

JenniferG11 (Texas)
Posts: 667

Posted:

The life estate holder is the legal owner of record and has all the rights and responsibilities accordingly.

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