Not receiving the HOA materials, even if you requested it, may not give you any recourse.
Checking HOA rental restrictions is super-key whenever you invest in a place.
I think you may have to sell the place.
There is a chance you can sue your agent for errors and omission, but that is a long road to collecting.
And from reading your responses, it seems more like an oversight.
@Ricky Jefferson You would have NO recourse against the condo/HOA association. However you may have recourse against the seller, your attorney, or your agent..
Even if you were buying as a owner occupant, most states have strict rules about you being entitled to HOA/Condo docs.
As others have said, something seems fishy. Either you got snowed big time, which probably means you have a legal out, or you went along with with a deception and helped burn yourself.
@Ricky Jefferson In some states, if HOA guidelines are not delivered to the buyer by a certain date, it allowed the buyer to back out of the transaction. But you already closed on this deal.... I would however, have a conversation with my agent and attorney as to why they didn't provide any HOA documentation.
You mentioned second home... or investment.... because it wouldn't make sense for a bank to underwrite a loan at 5 % down and without them verifying the HOA restrictions on rentals. It sounds like you told them it was going to be your second home when in fact, you intended to rent out this place.
your best bet is to talk to the association and see if they can make an exception.
@Ricky Jefferson - Can you or your brother 'live there' and have a paying 'roommate'? The more you ask about it, the more likely they'll watch your unit. Lesson learned. In NJ I know we have buyers sign off on HOA covenants at/by closing. Renter rules can exist to protect the ability of the neighborhood to get financing. Did you say you're an attorney and an agent? If so, you're obviously not an unsophisticated buyer. Did you buy a rehab or a turnkey? Ie can you fix it up and resell it? What are the CCR penalties? If you rent it, try to include a clause where you'll prorate rent and pay for their move out up to $500 or something if condo association forces them out (but then they could ask them to anytime they wanted to break your lease).
Originally posted by @Ricky Jefferson :
I closed my deal â but now I can't lease it due to HOA rules .
Well I was planning on writing this blog to explain how I got back into the real estate business after losing several properties in 2008. I had several challenges with buying my first property after rebuilding my credit. I heard a podcast that suggested that I make a list of all of the Community Banks in my area and Credit Unions for possible financing. I called several and researched everyone. I found a Credit Union to write me a great loan with only 5% down for my new purchase….Awesome!
I closed on the apartment last week but I just received a call from a board member saying that they don't allow leasing in the complex. That's a nightmare because now I have a loan in place. Apparently I was supposed to receive paperwork regarding the HOA rules which was never given to me.
I'm wondering since I never saw or signed any documents regarding g the rules under HOA am i held to them? I live in California and my brother mange's the place in Mississippi. The loan closed on 10/2
Can anyone help me with this?
Unfortunately you are out of luck on this one. If the rules prohibit it I'd recommend selling. Just chalk it up as a learning experience.
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