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11-14-2007, 07:14 PM #1
Fixer Upper
- Join Date
- Sep 2007
- Posts
- 35
HOA Covenant Change Impact
We made an offer on a single family home in a neighborhood with an active HOA. The current covenants do not prohibit renting out a home in fact they have language referencing granting access to common property to tennants. Upon contacting the HOA we learned that 24hrs ago at the annual meeting they passed a motion to have their lawyer create an addition to the covenants prohibiting the leasing of homes to renters. This would take effect in January 2009. I believe that if my offer is accepted and I close before this date after that date I'm still bound by the covenants and would then have to sell the property. Anyone know otherwise? It's been my experience that if you buy in a neighborhood controlled by covenants that you are then bound by any changes even if it would impact someone living in the home. Sad because we would have bought this home from someone needing a short sale and we're on the sixth month after they listed the home so it will now be foreclosed. It needs work too so the HOA will now have a vacant POS for a property.
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11-15-2007, 04:42 AM #2
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- Sep 2007
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- Outer Banks
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- 1,282
I am pretty sure that when covenants change everyone has to comply. Otherwise every existing property would be grandfathered making the change pointless.
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