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Thanks_4Answering | Can the HOA or Home Builder regulate whether you can rent your house? |
I received a letter from my HOA asking for me to occupied my house or sell it due to a contract I signed with the builder. The contract says that if I rent my house out for any reason I would paid a liquidated damage of $30,000. I don't remember if I sign the contract since I couldnt find the contract. Assuming that I did signed it, can the builder do that? Can the HOA not permit you to rent out your property? Also I didn't get the job in the city I bought my house. |
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bostonianinmo
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If you signed a contract with that stipulation it may be enforceable. Ask them to provide a copy of the contract with your signature on it.
However, although HoAs do wield come clout, such a rule or contractual stipulation MIGHT be ruled as unenforceable by the courts. You'll have to sue or let them sue you to resolve that issue. In some jurisdictions these restrictive covenants or HoA rules have been ruled as against public policy and overly restrictive of property owner's rights. |
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acermill
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Yes, the HOA can set such rules. If you signed the agreement, you cannot rent the house to someone else. Your only option is to put the home up for sale. HOA's enter into legal and binding contracts for a reason. They want the area to be strictly owner occupied. |
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bull_rooster_aardvark
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HOA's can enforce bylaws saying you can't rent out your house. I'd call them up and demand a copy of the contract before doing anything, just to make sure. However, I don't think you did necessarily have to have signed anything. Before buyinng the house you should've been given a copy of the hoa rules. In the rules it would've told you if you could rent out your place or not (did you get the rules? did you read them?).
Assuming you did get this info and its done correctly, then yes you can't rent out your house. You could call the hoa up and ask for an exception, explaining that you need to do this as you didn't get a job - but its very unlikely they'll give it to you (still, won't hurt to ask). Assuming they won't give you an exception you'll have to either not rent the place or pay the damages (or call a lawyer and fight it out, but this sounds like a locing prospect).
Sorry I can't give you any good news on this one. Best luck. |
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Michael J
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If you're in the U.S it depends on state laws but in general It is possible for the covenants of a home owner's association to restrict whether a house can be rented or not. It's pretty common. If I'm reading this correctly, it appears this HOA contract has a "poison pill" provision relative to rental property.
It's pretty important to keep copies of binding contracts you sign. |
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goz1111
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most likely yes, unless the hoa or builder is violating a fair housing issue they are well within their rights to restrict the use of the home esp in the area of renting should have read the contract before you signed it |
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Proud Mommy
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Unfortunately the answer is yes. Many HOA's have different rules and they can restrict property rentals. Before acting on it you definately want to find your copy of the of the contract/bylaws you signed and read it over. They should be able to provide you with a copy if you're unable to locate yours. |
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regerugged
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If you signed a contract with a builder, I don't see how your Homeowners' association can enforce it. Secondly, I don't see where anyone can show a $30,000 loss if you rent your property out. Even signed contracts have to have a valid, legal purpose. You may have to talk to an attorney.
I live in a condominium complex. I would rather eat broken glass than deal with the absolute morons who run my association. |
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ejohns1970
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Yes, they can have a say. In our community, only 25% of the neighborhood can be rented out. |
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surfbum68m
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Have them produce the contract with your signature. Then get a lawyer. |
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Leo F
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State laws have nothing to do with it. Yes the HOA can regulate whether you can rent your house. They can tell you what colors you can only paint your house and how many cars you can have in your driveway. They don't want renters due to the fact that most renters do not take care of the prop, like a homeowner does and they have no control over a renter, they can't fine the renter but they can fine you. |
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