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Can condo association deny occupancy based on personal financial requirements?

Posted on Mon, Apr 12, 2010 @ 07:42 AM
  
  
  
  
Is there a law or a place where I can find answers about rules of denying somebody the right to occupy a condo due to insufficient finance even if they have proved that paying the mortgage and the condo association dues is only 10% of their income?

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COMMENTS

There are lots of unanswered items that are necessary to post a reply. Who is somebody? an owner, a tenant? Who is denying you occupancy? What state are you in? If you can fill out the question a bit more, perhaps I can supply some information.

posted @ Monday, April 12, 2010 9:58 AM by Sherry Valentine


We would definitely need more information to assist you. If this owner has a mortgage, has a deed in their name on the unit and are paying their monthly assessments then you (as a neighbor, or even if you are a Board member) really have no right to say or do anything with regards to their personal financial status. If they are past-due on their assessments and you are a Board member then you should do whatever you are legally responsible to do in collecting that money. Otherwise, I would try to stay out of their personal finances.

posted @ Monday, April 12, 2010 10:23 AM by B


I can answer from the perspective of a California resident living in what most would agree as a very consumer friendly state. The short answer is: (almost always)NO. On the purchase a Board has no authority to review or approve an owner's financial wherewithal. Once an owner the Board can exercise the power of lien and foreclosure if an owner becomes delinquent in assessments. In the event of foreclosure the Board has the effective power of disposession. I have seen CC&Rs where the Board has the right of first refusal. These are not popular in practice because the only option to "deny" a purchaser is for the HOA to buy the unit instead. This is very cumbersome as well as expensive. 
 
 
 
I hope this answers your question.

posted @ Monday, April 12, 2010 6:14 PM by Marc Binenfeld


In general, Florida points to restrictions in the condo docs if any. The keywords you would want to use is "right of first refusal". 
 
Usually this allows the board to review the contract and the prospective purchaser and if they do not want to approve the prospective purchaser provided by the seller, they can deny that person; however, normally they must provide an acceptable buyer or purchase the unit themselves. 
 
In a case of denial, those who are denied understandably don't typically feel comfortable joining the community anymore and you will often see these transactions fall through.

posted @ Tuesday, April 13, 2010 3:35 PM by Joyce Nord Joyce@thecondocommando.com


I heard of co-ops being able to do that. Here in DC that wouldn't be uncommon in a high-priced area. But otherwise in a condo this would scream potential discrimination lawsuit. If they can be approved for the mortgage and pay their fees on time and don't violate the other CCR's what legitimate reason could anyone have to not want someone. But this concept of right of first refusal is very interesting - I've never heard of it.

posted @ Sunday, April 18, 2010 4:21 PM by LLH


We are paying cash for a condo in FL. We were told the board would have to approve us. We have a past foreclosure on our credit. It is the only blemish, but we realized its a big blemish. Can the board deny our approval because of this? We have plenty of income and can easily afford the monthly maint. fees.

posted @ Friday, June 04, 2010 9:57 PM by Kay


Hi. We want to rent a condo, and the HOA wants to run our credit. The unit is owned, and we want to rent from the owner. Can the HOA deny us based on our credit?

posted @ Tuesday, August 31, 2010 8:27 AM by LIZ


The HOA or Board of Directors has the right of first refusals as someone mentions it in a coment above. However the reasons for a denial can be the ones allowed in each Condominium documents/Rules and regulations. Some condos can deny because of financial reasons, others because of criminal records, each condo may have different reasons for denial. That is why each buyer or tenant is given a copy of documents... so as to understand what they are getting into. those documents is not just to find out if you can have a dog or not. 
READ THEM.

posted @ Friday, September 27, 2013 3:36 PM by gio


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