Real estate Q&A: Is condo’s no-rental policy legal?
A condo has no-rental policy, but the rule wasn’t in place when an owner bought his unit. Is it still legal and enforceable – and, if so, are there exceptions?
Question: My condo, like many others, has a “no-rental” policy. The owners are forbidden to rent their units for any reason. These rules were not in place when I bought the unit. Is this legal and enforceable? Are there any exceptions if I need to rent my property? – Bernard
Answer: Yes, the restriction is legal as long as it was properly enacted under the rules set forth in the condo declaration. But if you owned the property before the restriction took effect and did not vote for it, the restriction does not apply to you. Still, when you sell the property, it will apply to the new owner.
If the restriction is being applied arbitrarily or unfairly – say if board members are allowed to rent but everyone else is denied – or if it violates a constitutional right or public policy, it can be successfully challenged.
Many rental restrictions will allow for an exception for owners experiencing a hardship. Other restrictions address who may rent and when. Because of this, it is important to review the condo declaration and other written rules yourself. It’s not what the board says that matters – it’s what the written rule actually says. Board members must review hardship applications carefully and treat them all fairly because often it is the improper application of the rules, rather than the rules themselves, that can get the associations in hot water.
About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program.
The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.
Copyright © 2016 Sun Sentinel (Fort Lauderdale, Fla.), Gary M. Singer. Distributed by Tribune Content Agency, LLC.
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