Ownership and Transfer of Interest

HOA Amendment of CC&Rs Restricting Owner Rental Rights was Valid This case involved a dispute between a homeowner (“Owner”) and a homeowners’ association (“Association”) over the enforceability of an amendment to the Association’s CC&Rs that imposed a restriction on homeowners’ rights to rent their units. When Owner purchased his unit ...

HOA Governing Documents Must Properly Provide for Restrictions on the Leasing of Separate Interests The governing documents of many common interest developments contain provisions that restrict the owners' rights to lease their units. These restrictions range from absolutely prohibiting leasing, to partially restricting leasing, to merely imposing restrictions on tenants' ...

HOA Issues Can Impact the Ability to Obtain Financing and Thwart Sales of Homeowner Properties Selling a condominium or a home that is part of a homeowners association involves lender inquiries into the business affairs of the homeowners association itself, and not just the intended borrower who is looking to ...

Holder of Note and Mortgage Had Standing to Pursue Foreclosure Action In this case, in 2006  homeowners executed a promissory note secured by a mortgage on their property in favor of Option One Mortgage.  The homeowners defaulted and, subsequent to the default, the original lender assigned the note to another party, Liquidation ...

Homeowners Associations Must Work to Avoid Becoming Plagued by Member Apathy “Apathy” is a lack of interest, enthusiasm, or concern. Since the very nature of a homeowners association is that it is operated by the members of the association, the effects of member apathy can be devastating to the association ...

Illinois Court Strikes Down HOA's Amendment to CC&Rs that Sought to Prohibit Owner Leasing of Units The plaintiff in this action filed suit against her HOA to challenge an amendment to the Association’s restrictive covenants that, in part, prohibited homeowners from leasing their residences. The plaintiff had owned and leased ...

Illinois Ct. Throws Out HOA Rules Which Limited the Number of Units That Could be Leased to Tenants This case involved a dispute between a homeowners association (“Association”) and two homeowners (“Owners”) over Owners’ right to lease their condominium unit to a non-owner tenant. Association’s governing documents (the declaration) contained ...

Iowa Sup Ct Rules Foreclosing Lender Cannot Sue Builder for Claims Based on Implied Warranty In this case, a bank acquired title to an apartment complex by accepting a deed in lieu of foreclosure. The bank subsequently discovered that the property was mold-infested and filed suit against the builder of ...

Kentucky Ct Enjoins Homeowners Short Term Rentals of Property as Prohibited Business Use of Property The appellants in this case were homeowners of a property located within a common interest development that they used for short term rentals. The homeowners association brought suit against the homeowners seeking injunctive relief contending ...

NV Supreme Ct Upholds Decision Giving HOA Lien Priority Over $885,000 First Trust Deed The Nevada State Supreme Court has ruled that a homeowners association’s foreclosure of a super priority lien can extinguish a first deed of trust on the property. The property in question was owned by a real ...

Oregon Bankruptcy Court Says Debtors' Chapter 13 Plan Can Force Lender to Take Title to Property The Debtors in this Chapter 13 bankruptcy proceeding owned a property located in a planned community where the property was subject to homeowners association assessments. The homeowners association had a judgment lien in the ...

Oregon Ct. Rules Lender Cannot Be Forced to Accept Title to Property via Chapter 13 Bankruptcy Plan A lienholder (“Bank”) appealed a bankruptcy court ruling that confirmed a Chapter 13 Bankruptcy Plan that had been filed by the borrowers on a loan held by Bank which was secured by the ...

OWNER HAD RIGHT TO RENT UNIT AS SHORT-TERM VACATION RENTAL This case involves a dispute between an association member / unit owner (“Owner”) and its homeowners’ association (“Association”) over Owners right to use its unit for short-term or long-term vacation rentals. This content is for Subscribers. To continue reading, you ...

Properly Adopted Amendment to Declaration Can Limit Owner’s Right to Lease This case involved a dispute between a homeowner (“Owner”) and his homeowners association (“Association”) over Owner’s right to continue to lease his home following the adoption of an amendment by Association to its Declaration which restricted the ability of ...

Protect Your HOA by Requiring Lease Addendums When Owners Lease Their Separate Interest Has your board experienced delinquent homeowners who collect rent from their tenant but don’t pay their share of association dues? Has your board experienced problem tenants who don’t follow the HOA’s rules? These are common scenarios that ...