StephenO4 (New York)
Posts: 11
Posts: 11
Posted:
I reside in New York State. Is there any condition/law with the sale of a unit that the new buyer must reside in the unit for a certain period of time before renting the unit.
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Sale of a unit
Started by StephenO4 • 11 replies • 563 views
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PaulJ6
Posts: 990
Posts: 990
Posted:
1. Local law might ban short-term rentals, so local law might have a minimum residency requirement. But unlikely, outside of NYC.
2. It would be the condo's governing documents or board-imposed rules that have a minimum residency requirement. These are internal documents for the condo association, not state or local laws.
2. It would be the condo's governing documents or board-imposed rules that have a minimum residency requirement. These are internal documents for the condo association, not state or local laws.
PaulM30 (B)
Posts: 41
Posts: 41
Posted:
Quote:
Posted By StephenO4 on 02/12/2020 9:34 AM
I reside in New York State. Is there any condition/law with the sale of a unit that the new buyer must reside in the unit for a certain period of time before renting the unit.
I reside in New York State. Is there any condition/law with the sale of a unit that the new buyer must reside in the unit for a certain period of time before renting the unit.
It can be written as a bylaw fairly easily. We're considering doing it to try and deter sales to landlords. It's easier than restricting/managing the number of units that can be rented.
DouglasK1 (Florida)
Posts: 2,046
Posts: 2,046
Posted:
Quote:
Posted By PaulM30 on 02/12/2020 10:22 AM
Posted By StephenO4 on 02/12/2020 9:34 AM
I reside in New York State. Is there any condition/law with the sale of a unit that the new buyer must reside in the unit for a certain period of time before renting the unit.
I reside in New York State. Is there any condition/law with the sale of a unit that the new buyer must reside in the unit for a certain period of time before renting the unit.
It can be written as a bylaw fairly easily. We're considering doing it to try and deter sales to landlords. It's easier than restricting/managing the number of units that can be rented.
I would expect that such a restriction would need to be in the CCRs, I don't think it would be enforceable in the bylaws. The CCRs typically have a higher threshold to amend than the bylaws do.
Escaped former treasurer and director of a self managed association.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Our Covenants say one cannot rent/lease their unit during their first year of ownership. This was out in there to stop speculators.
We have several cases of where parents bought the place and only an adult child moved in and one where the parent of the buyer was the only one that moved in. We have never questioned these as who knows the mechanics of family members.
We have several cases of where parents bought the place and only an adult child moved in and one where the parent of the buyer was the only one that moved in. We have never questioned these as who knows the mechanics of family members.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Along with Douglas, I don't see this as something that would even be in the bylaws. If what PaulM's HOA wants to do does not conflict with their CC&Rs, they could try to put it in their Rules & Regs.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
There may be some laws on this with the state. Each state varies. Also the mortgage company may not allow property to be rental for a period of time as conditions of the loan. It's not just a HOA thing.
I believe a few years ago Florida was getting overrun by condo flippers. They were buying and renovating multiple units. The renovations were quite sub-par. Which there were little regulations on how many properties one could own at a time. Owning multiple property is a red flag of a questionable flipper.
There was someone caught doing it and sentenced to prison for it. Don't know all the details of the case. However, laws have been passed recently in regards to regulating multiple home ownership and bad flippers. Some laws may restrict multiple ownership and/or time limits before renting. Each state varies of course. Laws are always changing as more new buyers get screwed by scrupulous home flippers.
I believe a few years ago Florida was getting overrun by condo flippers. They were buying and renovating multiple units. The renovations were quite sub-par. Which there were little regulations on how many properties one could own at a time. Owning multiple property is a red flag of a questionable flipper.
There was someone caught doing it and sentenced to prison for it. Don't know all the details of the case. However, laws have been passed recently in regards to regulating multiple home ownership and bad flippers. Some laws may restrict multiple ownership and/or time limits before renting. Each state varies of course. Laws are always changing as more new buyers get screwed by scrupulous home flippers.
Former HOA President
LetA (Nevada)
Posts: 2,679
Posts: 2,679
Posted:
I often see on Mortgage documents between the bank and buyer a rental restriction, but yes boards can put in the rules and regs or CC&R restrictions on rentals within the first 1-3 years of ownership.
MarshallT (New York)
Posts: 414
Posts: 414
Posted:
Great point!
MarkW18
Posts: 1,290
Posts: 1,290
Posted:
Unless it is a rare instance where the Board can put something into the CCRs without membership approval, it would be up to the membership to approve any amendment that could restrict rentals.
Another thing an HOA could do is inform the mortgage company that the home went from owner-occupied to an investment property. There is typically a .75 point hit to one's interest rate once they rent it out.
Another thing an HOA could do is inform the mortgage company that the home went from owner-occupied to an investment property. There is typically a .75 point hit to one's interest rate once they rent it out.
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
Quote:
Posted By PaulM30 on 02/12/2020 10:22 AM
It can be written as a bylaw fairly easily.
It can be written as a bylaw fairly easily.
I wouldn't put that in the Bylaws. The CC&Rs would be the appropriate place for that. I agree such a restriction can be very effective in deterring investors who are only looking for cash flow and profits.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Geno's right. Such a restriction does not belong in the Bylaws.
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