Condo Association Management Blog

Check with your city or county and determine their specification for number of persons permitted to occupy a dwelling based upon the square footage thereof. 
Please post exact wording from your bylaws on this subject. What state are you in?

Besides checking to see if your HOA has rules about occupancy. Which I doubt it has. Check your cityand federal laws. Most laws say 2 heads per bedroom.I have lived in four states and being in the housing industry - city/federal laws state just what I stated.

The issue as you described is not so much that you can't sell it to them but that they can't move in there. This is a very strange limitation if there is one indeed. Usually most municipalities will limit occupancy to two people per bedroom plus one person. So if it's a two bedroom permitted occupancy would be 5, for three bedroom 7.

Both our governing documents and city laws limit occupancy to 2 persons where I am, but this may well be different where you are. I agree with Jeff that the limitation is not on you selling the property, but to who can occupy it. An experienced realtor or attorney may be able to assist you in dealing with this matter.  
 
Good luck!!

I should have said the limit is 2 persons per bedroom in my posting,not 2 persons.

The restriction may be in violation of federal law. If the additional people are the proposed owners' children this may be a clear violation unless this is an over 55 complex.

I disagree with CONDHATER that "The restriction may be in violation of federal law. If the additional people are the proposed owners' children this may be a clear violation unless this is an over 55 complex."  
 
The 2 persons per bedroom limitation does not preclude children, it only precludes more than two people per bedroom, be they children or adults. Therefore,a single parent could occupy a three bedroom unit along with 5 children and that would be allowed, as that is 2 persons per bedroom. Seven adults would not be allowed as it is more than 2 persons per bedroom. By CONDOHATERS logic that would be age discrimination if those adults were senior citizens.