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Can condo association board give me a break on owner occupancy?

Posted on Fri, Oct 30, 2009 @ 06:57 AM
  
  
  
  

How can a condo association enforce owner occupancy requirements in today's economic circumstances?

Owners may need to go else where to seek employment so they can pay their mortgage and condo fees. I personally relocated with my job and I am unable to sell the condo because the value has depreciated to less than 50% of what I owe on the mortgage. My complex has a huge rate of foreclosures as well.

Can the condo board force me to quit my job out of state and return to my condo to find a new job becaue they may not approve my Mother to occupy the condo for me? This is so silly, this owner occupany requirement is doing more harm than good.

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COMMENTS

I am a trustee of a condo neighborhood of 64 units. We have in our condo documents that all owners sign off on when they buy the percentage of non-owner occupancy allowed. Owners are required to submit a proposal to rent (including leasing agreement) to the board for their approval before they can move forward. This is to protect the other owners if they decide to put their unit on the market. Banks will be reluctant to approve mortgages to new homeowners interested in buying in a condo neighborhood that has a high percentage of non-owner occupants. You can see how this would pose a problem to those who choose to sell.

posted @ Friday, October 30, 2009 7:26 AM by Sandra C.


I think you need to do the following: 1. Write a letter to your board requesting a meeting. 2. Review the condominium documents. 3. Consider placing your mother's name on the deed or creating a trust in her and your name - then she qualifies as an owner in "owner occupied." (This would probably need a good real estate attorney.) That leads to 4. Review your documents and applicable state law with a real estate attorney. 
 
The board has a responsibility and is trying to enforce it. They are not "the enemy" and you need to work with your fellow owners (the board) to make sure that you can comply and that they can perform their duties. They also may have limited options, and without knowing your state laws and your documents, it is difficult to give you more options. 
 
Remember that state law will always trump the documents, so if state law says it is not allowed, it doesn't matter what the documents say or that you agreed to it when purchasing, because they can't go over state or federal law. Documents often are not changed or older formats are used even when state or federal laws have changed.  
 
The easiest solution may just be to have your mother placed on the deed along with you.

posted @ Wednesday, November 04, 2009 10:08 AM by Joe Schuirmann


Usually there is a fixed number of units or a percentage of the property total that is allowed to be leased and not owner occupied. You should always refer to your by laws and declaration for specifics as they are written for your property. It sounds like you may have already approached the Board and/or management company and gotten a answer to your question or maybe your speaking in hypothetical’s but I would start by writing a letter to the board and management company explaining your situation in as much detail as you feel comfortable. You might reinforce your case by including the facts of the properties situation. Do your homework and make sure that anything you decide to include is in fact factual and true. The board may have the right to make an exception if they are clear on your situation and they understand that it is to be a temporary solution for you to your particular situation, if this is the case. Make sure to keep a copy of any and all communication. This will help insure that nothing is assumed or misunderstood between the parties and you will have your copy should you need it in the future. I recommend all communications in business affair and transactions be documented. Any verbal communications should be followed up with a written summary of that conversation and again, retain a copy for you records. 
 
 
 
In these trying economic times everyone is being forced to “relax” from the “business as usual” way of thinking and give consideration where possible. More times than not if a person presents their case in a adult and professional manner with a well written letter explaining the facts a solution to the problem that is acceptable for both parties and be reached. I personally feel based on the details you included in your post conveyed in your post that your situation is going to be a temporary one and that might be key in getting approval you seek from the board. I would focus on that fact and be sure to include an estimated time line even if it is simply your best guess. It will show that you have given your situation thought and you’re not just darting around looking for whatever solution that presents itself. Something important to remember in your situation is that there are very specific reasons for limiting the number of units that are leased by owners. The reasons usually include but are not limited to 1) renters may not care for their units and common areas as well as the owner would 2) renters tend to not follow and adhere to a properties rules and regulations as well as the property owner. The bottom line is that units being leased by the owner have a tendency to cost more to property in repairs, cleaning and damages. Those are some of the tangible reasons. Other not so obvious reasons could include problems with owners and the occupants of the leased units with loud noise or music 2) leasers’ not complying with rules and regulations 3) unauthorized guests or additional occupants 4) improperly parked or unauthorized vehicles. These are but a few of the most common problems associated with leased units. 
 
 
 
I hope that this will give you some useful and helpful information to help you with your issue! ... Read More 
 

posted @ Wednesday, November 11, 2009 7:39 AM by Larry


Ours was apartment and converted in condo,last year.In a meeting five board members appointed.(No other person interested in becoming board members.) 
We have,President,Treasurer,Secretary and two other board members.  
At the end of last year there was General body meeting.No body show up except some board members. 
Before meeting, the President resigned. Treasurer intended to resign and wish he be hired to do account work and be paid. 
Now secretary has resigned. He is taking money for services offered.He collects money.He is writing checks. He has access to bank account. In last meeting, The president requested that she wants be one of member and can be treasure but no longer wish to be president. 
I suggested that all board member remain as it is, treasurer should not charge for services and some other inactive members may be persuade to be board member in next General body meeting and then treasurer can be hired for services. I am one of board member. We have 100 units. 
I wish opinion and other legal points involved if any. 
Suggestion welcome.

posted @ Tuesday, April 06, 2010 7:56 PM by knubhai


I have recently purchased a bank owned condo in a shore town. I have had good luck taking advantage flipping condos in this town due to the high level of foreclosures. However, this case is a bit different since it is a complex of 19 units and only 6 are occupied. How could I find a lender willing to finance something like this? I did not use financing, but I would like to put my buyer in contact with a good lender.

posted @ Monday, March 14, 2011 2:12 PM by Bryan


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