HOAs changing bylaws

3 Replies

My wife (agent) is currently working w a client to find a rental property.

Their price range only allows for townhomes and not SFH.

The last 3 places they have looked at had recent changes to the HOA bylaws making it near impossible to rent.

The last place recently banned renting entirely. The listing agent said that they had 12 people want to buy the house as a rental and turned away as a result. The house has been on the mkt for 77 days in a red hot market. It's also very decently priced.

I just think about the poor owners that had the HOA change these rules and make selling their home so much harder.

Is there any form of recourse? 

Originally posted by @Luka Milicevic :

My wife (agent) is currently working w a client to find a rental property.

Their price range only allows for townhomes and not SFH.

The last 3 places they have looked at had recent changes to the HOA bylaws making it near impossible to rent.

The last place recently banned renting entirely. The listing agent said that they had 12 people want to buy the house as a rental and turned away as a result. The house has been on the mkt for 77 days in a red hot market. It's also very decently priced.

I just think about the poor owners that had the HOA change these rules and make selling their home so much harder.

Is there any form of recourse? 

Probably not. An HOA can be very difficult to work with and it is sometimes full of people who are like minded so rather than fight an uphill battle, find someplace where the people want are like you are.

 

When you buy an HOA property you sign a contract agreeing to abide by their rules, both current and future. Your only recourse is very similar to if a town changed the local laws to forbid something.

You can check to confirm that the rules were implemented properly in accordance with local laws and HOA bylaws. (Some communities are run by the owners, and things can get overlooked)
You can also rally enough people who feel strongly about the change, that you can push for a vote to change it back.

You have no legal recourse to sue for losses or anything crazy like that, unless some incredibly unlikely circumstances occur.

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