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  1. #1
    bcriado is offline Junior Member
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    Condo Association Interview Process

    What is the name of your state? Florida - According to our condo association docs a new home buyer or potential tenant must be interviewed by the board of directors to be approved to live in the community. What are the conditions that "legally" allow the board to disapprove a home buyer or potential tenant - do the state statutes define this or is it at the interpretation of the association documents?What is the name of your state?What is the name of your state?
  2. #2
    moburkes is offline Senior Member
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    Quote Originally Posted by bcriado View Post
    What is the name of your state? Florida - According to our condo association docs a new home buyer or potential tenant must be interviewed by the board of directors to be approved to live in the community. What are the conditions that "legally" allow the board to disapprove a home buyer or potential tenant - do the state statutes define this or is it at the interpretation of the association documents?What is the name of your state?What is the name of your state?
    What reason are you attempting to disapprove the new homebuyer?
  3. #3
    You Are Guilty is offline Senior Member
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    Although Florida has some pretty lenient condo rules, what you are proposing is prohibited in every state I know of. (It's an illegal restraint on alienation).
    Quote Originally Posted by Tranquility
    Once you get to crazy land, it is only a guess on how to get out.
  4. #4
    moburkes is offline Senior Member
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    Quote Originally Posted by You Are Guilty View Post
    Although Florida has some pretty lenient condo rules, what you are proposing is prohibited in every state I know of. (It's an illegal restraint on alienation).
    You're spoiling the fun! I'm trying to imagine what reason they have for denying someone who qualifies for a mortgage, the right to buy the home they are interested in.
  5. #5
    You Are Guilty is offline Senior Member
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    Quote Originally Posted by moburkes View Post
    You're spoiling the fun! I'm trying to imagine what reason they have for denying someone who qualifies for a mortgage, the right to buy the home they are interested in.
    Not that I would ever suggest it, but there are ways to effectively "screen" potential condo purchasers without running afoul of the law using facially neutral bylaws.

    But since I would never suggest that, I'll leave it as "I hope the board has a right of first refusal because that's the only power it has to control who occupies a unit".
    Quote Originally Posted by Tranquility
    Once you get to crazy land, it is only a guess on how to get out.
  6. #6
    Paddy Reagan is offline Member
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    What are the conditions that "legally" allow the board to disapprove a home buyer or potential tenant - do the state statutes define this or is it at the interpretation of the association documents?
    I'm going to offer some information here from a recent response to a similar question:

    Other than setting a maximum fee of $100, Florida statutes offer little guidance on the issue of buyer and tenant approvals by boards of directors. As a result, the Declaration of Condominium and By-Laws provide primary instructions and authority for such actions. Much disparity exists among the thousands of condominium communities. Some declarations prohibit screenings and approvals. Others, especially older condos, offer a right of first refusal by which the board can actually purchase a unit if the approval process exposes a less than desirable buyer. Still other associations conduct extensive background investigations and occasionally, turn down potential buyers and tenants.

    With so many variations in play, every board seems to have its own idea of what is appropriate. Some will tell you that a board can only reject a buyer by exercising the first refusal right. Others believe the board can reject any potential buyer without cause. (Of course, if the disgruntled buyer files a discrimination suit against such a board, some very good reasons need to be in the file.)
    In a condo community with approval rights, the procedure usually works like this:

    a. An application is completed and a fee is paid. The buyer/tenant signs a waiver/release to permit background and credit checks.

    b. The approval committee or manager proceeds with the investigation (often outsourced) and reports the findings to the board.

    c. Many boards or their appointed committees insist on a personal interview.

    d. The board approves/disapproves the application.

    e. For approved applications a Certificate of Approval is prepared and forwarded to the closing agent, a copy of which is included with the deed when it is filed in the county records.

    Not every community is so thorough (or is permitted to be by their Declaration) and rejections are rare. But they do occur. One of my associates signed a contract for a condo unit on South Beach several months ago. She was acquainted with one of the board members and had some prior disagreements. Her application was rejected without a stated cause. Because she was not in class protected by the fair housing statutes, she was unable to find a practical way to overturn the decision.

    I know this process seems alien to owners of single family dwellings. However, condominium and cooperative communities are unique. The idea that a criminal may be living down the street has less impact than living across the hall, sharing an elevator, and a garage. The Florida Supreme Court, in a preface to a ruling, had this to say:

    "Inherent in the condominium concept is the principle that to promote the health, happiness, and peace of mind of the majority of the unit owners since they are living in such close proximity and using facilities in common, each unit owner must give up a certain degree of freedom of choice which he might otherwise enjoy in separate, privately owned property.

    "Our Legislature also has expressly recognized the necessity for restrictions upon the use, occupancy and transfer of condominium units."
    Last edited by Paddy Reagan; 03-29-2007 at 11:32 AM.
  7. #7
    frank112 is offline Junior Member
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    Condo seller here who's buyer was rejected by the condo board (of which im a member) stating the cause as "the buyer would not agree to condo rules" which is false (I have an affidavit from the buyer).

    I'm looking for a litigation attorney in my area because I do not believe that they have just cause to reject the buyer assuming they even have the right to do so based on NY state statute.

    Only way I can see the board winning in this case is if they have the right to reject a buyer without cause which seems beyond unreasonable to me. Any advice would be greatly welcomed.
  8. #8
    Zigner is offline Senior Member
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    I advise you to start your own thread - don't necropost to a 3.5 year old thread...and don't hijack.

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