Right of denial by condo association

C

CindiW

Member
Jurisdiction
Florida
Can someone please explain what Right of Denial by condo association means if I want to sell my condo. How does this work?
 
CindiW said:
Can someone please explain what Right of Denial by condo association means if I want to sell my condo. How does this work?
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This appears to affect condo dwellers in FL and NY, far more than others.

You should discuss any concerns with your HOA management, to make sure you find buyers that are more likely not to get rejected.

This is just one of the thousands of reasons I never buy property that involves an HOA.

Two of the most common reasons this might impact you are:

1. HOA Regulations
If there is something inherent in the buyer's application which goes against the rules of the association, the HOA could deny a buyer. One example of this is that the buyer has pets and the HOA doesn't allow pets. In order to be allowed into the HOA (and the home) the buyer would need to give up their pets. Of course, yoru buyer could simply give away their pets.

2. Misrepresentations
An HOA can not deny you based upon your past criminal history, your job status, or whether or not you've filed for bankruptcy. This would count as discrimination. They can deny your buyer if the person(s) lied about their background in their application and the lie is discovered.

This website offers information that might be helpful to you:

Florida Laws and Regulations Regarding HOAs and Condo Associations
 
CindiW said:
Can someone please explain what Right of Denial by condo association means if I want to sell my condo. How does this work?
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How it works is that your prospective buyer has to fill out an application with all his or her details and submit it to the association for approval.

If he doesn't meet the criteria established by the CC&Rs and bylaws then he goes away and you look for another buyer.
 
army judge said:
This appears to affect condo dwellers in FL and NY, far more than others.

You should discuss any concerns with your HOA management, to make sure you find buyers that are more likely not to get rejected.

This is just one of the thousands of reasons I never buy property that involves an HOA.

Two of the most common reasons this might impact you are:

1. HOA Regulations
If there is something inherent in the buyer's application which goes against the rules of the association, the HOA could deny a buyer. One example of this is that the buyer has pets and the HOA doesn't allow pets. In order to be allowed into the HOA (and the home) the buyer would need to give up their pets. Of course, yoru buyer could simply give away their pets.

2. Misrepresentations
An HOA can not deny you based upon your past criminal history, your job status, or whether or not you've filed for bankruptcy. This would count as discrimination. They can deny your buyer if the person(s) lied about their background in their application and the lie is discovered.

This website offers information that might be helpful to you:

Florida Laws and Regulations Regarding HOAs and Condo Associations
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I will definitely ask the condo ass'n as to how it works. Thanks for the links.
 
adjusterjack said:
How it works is that your prospective buyer has to fill out an application with all his or her details and submit it to the association for approval.

If he doesn't meet the criteria established by the CC&Rs and bylaws then he goes away and you look for another buyer.
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It was some time ago that I asked, and the answer was confusing to me, but since we're not selling right now I guess I didn't pay big attention to it. And I could be wrong, but I remember they said something like they, the association, can buy it if they want. But I could be entirely wrong about this. Then again, it comes into the picture as to bequeathing it to someone, different from selling it, but I'd like to know.
 
CindiW said:
Then again, it comes into the picture as to bequeathing it to someone, different from selling it, but I'd like to know.
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Yes, if you were to leave the property to your cousin (Randy T. Rascal, for example), the HOA CC&Rs could impact Randy's ability to reside in the home.

If you're contemplating selling your unit in the near future, hire a real estate attorney to protect your rights.

Don't trust the real estate SALESPERSON to do anything but endeavor to get as BIG a commission as he/she can.

The lawyer will also educate about how to dispose of the property in the event of an untimely, inconvenient demise.
 
CindiW said:
It was some time ago that I asked, and the answer was confusing to me, but since we're not selling right now I guess I didn't pay big attention to it. And I could be wrong, but I remember they said something like they, the association, can buy it if they want. But I could be entirely wrong about this. Then again, it comes into the picture as to bequeathing it to someone, different from selling it, but I'd like to know.
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I suggest you read your CC&Rs and bylaws instead of relying on what some board member tells you.
 
I tried. They are very long and written in a manner for which I need a lawyer to interpret what it means. I also tried asking. I may speak to a lawyer about what it means, but I would think that the head of the association should know what it means. Meantime, some of the answers here are helpful.
adjusterjack said:
I suggest you read your CC&Rs and bylaws instead of relying on what some board member tells you.
Click to expand...
 
army judge said:
Yes, if you were to leave the property to your cousin (Randy T. Rascal, for example), the HOA CC&Rs could impact Randy's ability to reside in the home.

If you're contemplating selling your unit in the near future, hire a real estate attorney to protect your rights.

Don't trust the real estate SALESPERSON to do anything but endeavor to get as BIG a commission as he/she can.

The lawyer will also educate about how to dispose of the property in the event of an untimely, inconvenient demise.
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Thank you. I read the links and saw the proceedings of the lawsuit. I wonder, though, let's say upon death the association refuses to allow the beneficiary to take possession of it. Then what happens? Do they sell it and give $$ to the estate, or what?
 
CindiW said:
I wonder, though, let's say upon death the association refuses to allow the beneficiary to take possession of it.
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My guess is that's also addressed by the CC&Rs.

Note that you can upload a file here. Feel free to do so if you have a digital copy of the CC&Rs. When I was a claims adjuster I read hundreds of those documents for condo claims. I may be able to find the applicable sections for you.
 

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