Number One Rule should be … - Posted by Frank Chin
Posted by Frank Chin on February 27, 2002 at 10:04:37:
checking co-op HOA rules with the HOA directly and not relying on a broker saying “I know there are rentals, or L/O deals done there”, or relying on an attorney’s word that he read the bylawss, as these rules are not in the original bylaws.
Many co-op HOA’s, condo HOA’s have rules which you’ll have to follow, and limit these types of transactions. For instance, they usually limit the number of renters there, and you may have to dicker with the HOA if a T/B under an L/O is in fact a renter or buyer. If I was a HOA Board member, I’d be concern about many T/B’s walking away and not completing a purchase and the co-op be stuck with a renter in that unit years on end waiting for the REAL buyer.
But then, that’s just my opinion.
One fellow who posted here recently did not check with the HOA, only to find out after closing, and looking for a tenant that the HOA did not approve of rentals. It reportedly cost him a bundle to sell the unit immediately for only $1,500 more than what he paid for it.