HOAleader.com - Tip of the Week - December 14, 2018
Published: Fri, 12/14/18
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Seen These New Ploys Condo/HOA Owners Are Deploying to Beat Your Rental Restrictions?
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In this week’s tip, we report for what seems like the millionth time new tactics owners are using to try to skirt condos’ and HOAs’ rental restrictions.
This tactic isn’t common yet, but it’s appearing often enough that it’s gotten the attention of Matthew A. Drewes, a shareholder at DeWitt Mackall Crounse & Moore S.C. in Minneapolis.
“It comes up in the context of someone claiming to own a property but who’s actually a tenant, and nobody ever checks,” he explains. “Or there would be a purported contract for deed that’s meant to circumvent a rental cap or rental restriction.
“It was a strategy I thought of a long time ago when somebody asked me what their options were for getting around rental restrictions, but I’ve seen it numerous times now,” he adds. “In fact, I’ve begun to draft, and I’ve seen others draft, rental restrictions that address the possibility that somebody might create a sham contract for deed to make it appear they’re selling but are in reality allowing somebody to rent.”
Christopher J. Shields, a partner at Pavese Law Firm in Ft. Myers, Fla., who’s represented associations for decades, has encountered similar situations. But he believes the practice Drewes describes is more common in the Midwest.
“I’ve absolutely seen this,” he says. “We don’t see agreements for deed or land contracts here. Those are typically arrangements made in states in the Midwest, maybe in Minnesota, too, but mostly in Michigan and Illinois. That’s basically where title doesn’t transfer until the buyer actually makes all the payments, and that can take 30 years’ time. That’s really unusual and not the norm in many other states, including Florida.”
This tactic hasn’t arisen among the clients of Joe Hernandez, a member at Weiss Serota Helfman Cole & Bierman in Coral Gables, Fla., who advises condo and HOA associations and developers. “We’ve seen a variety of techniques, but I’ve not seen that one,” he says. “To me, that’s a little bit more risky if you’re the property owner, right?”
In other words, an owner who isn’t truly intending to sell could get stuck if a “tenant” demands the owner sticks to the contract to sell. Karma, anyone?
You can outwit these owners! Find out how in our new article: https://www.hoaleader.com/members/3831.cfm
Best regards,
Matt Humphrey
President
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HOA Reserves, Special Assessments, Loans & More:
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The best-run HOAs have boards that are smart with money. Those boards manage their owners' money with care, and when they have unplanned projects that require additional funding, they're equally methodical and thoughtful.
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Recent articles posted at HOAleader.com:
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Seen These New Ploys Condo/HOA Owners Are Deploying to Beat Your Rental Restrictions?
In this week's tip, we report for what seems like the millionth time new tactics owners are using to try to skirt condos' and HOAs' rental restrictions.
Click here to read full article:
https://www.hoaleader.com/public/Seen-These-New-Ploys-CondoHOA-Owners-Are-Deploying-Beat-Your-Rental-Restrictions.cfm
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Condo/HOA Owners Are Crafty! Another Way to Try to Get Around Rental Restrictions
We're hearing from one of our experts that he's seeing yet another way for owners to attempt to dodge condos' and HOAs' rental restrictions. In this situation, owners are claiming to have sold their unit under a contract for deed, but what they're really doing is renting their unit and trying to fool the condo or HOA with a contract that says otherwise.
Click here to read full article:
https://www.hoaleader.com/members/CondoHOA-Owners-Are-Crafty-Another-Way-Try-Get-Around-Rental-Restrictions.cfm
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Reduce Your Stress: Effective Dispute Resolution Techniques to Use at Your Condo or HOA
An in-depth webinar on December 13 will walk you through concrete steps you can take to reduce conflicts in your association and more quickly and effectively resolve conflicts when they do arise.
Click here to read full article:
https://www.hoaleader.com/products/effective-dispute-resolution-techniques-b.cfm
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More Alleged Embezzlements at Condos/HOAs--and the Easy Way They Could Have Been Thwarted
In this week's tip, we tell a familiar tale, but it's one we should never be telling because it's so easily preventable. Imagine thinking you have a six-figure sum in your reserve account and then one day getting a notice from your bank that a check written on that account has bounced.
Click here to read full article:
https://www.hoaleader.com/public/More-Alleged-Embezzlements-at-CondosHOAsand-Easy-Way-They-Could-Have-Been-Thwarted.cfm
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New: Three Florida Condo/HOA Associations Are Alleged Victims of Theft By Their Manager
Imagine thinking you have a six-figure sum in your reserve account and then one day getting a notice from your bank that a check written on that account has bounced. That's what allegedly happened in October to clients of Jane F. Bolin, the founding member and managing partner of PeytonBolin, a Florida-based law firm focused on community association law.
Click here to read full article:
https://www.hoaleader.com/members/New-Three-Florida-CondoHOA-Associations-Are-Alleged-Victims-Theft-By-Their-Manager.cfm
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