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HOA Trying to Regulate Condo Price

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rd2010

Junior Member
Hello,

My home owners association is trying to set a minimum sale price for the units in our condos. They are doing this to "protect property value". I think it's dumb, but do they have the legal right to fine owners who sell below a minimum sale price that they decide on?

If this is legal, what legal actions, if any, can I take to prevent them from doing this?

Thank you.
 


John_DFW

Member
Does your state disclose selling prices?

If not, perhaps you could make the contract have a non-disclosure agreement regarding price.

Obviously a foreclosure on the court house steps would not be bound by this, but I'm curious how a bank would deal with a short sale in this situation.
 

rd2010

Junior Member
I live in Louisiana. I believe sale prices are disclosed, but I'm not sure.

A bank owns one of the units and recently sold one for a very low price. That's why the HOA is trying to set a minimum sale price. The HOA tried to fine the bank for $25,000 for not meeting the minimum. The bank has now threatened to suit the HOA.

The HOA is adamant about this. I'm just wondering if HOAs have the right to make this kind of regulation. I surely don't want it, but I won't be able to do anything if the HOA ammends this rule in the bylaws or in whatever document will give them that power.
 

dmcc10880

Member
That's one of the most absurd concepts I've ever heard. The HOA can't set a minimum sales price. That would be blockbusting at best. If an owner has fee simple interest in a property, as one of the other posters wrote, you can sell your condo for a dollar. If the HOA wants a minimum sales price, then take in your offer and contract for sale/purchase and have them pony up the difference. That will shut them up real quick.

Even if they changed the covenants, and that would likely take a majority vote of the homeowners, it would surely be unenforceable in a court of law.
 

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