I purchased a Townhouse, HOA board won't allow me to rent it out

[turbogti]

California, I am a realtor, I represented myself as agent and purchased a townhouse 1 month ago. The listing told me that there is no rental restriction. That's why I went ahead a purchased the unit because I was going to rent it out and the purchase contract stated non owner occupancy also. The CC&R sent to me 2 days before closing even I asked a few times. Therefore I didnt get to read it. I was told by the board of director that there is a waiting list for rental and not going to allow me to rent my unit. I asked them why the Association allowed me to purchase it and they said the management company was not doing their job and they changed to a new company. I have a tenant lined up and moving-in in a week. Any suggestion what I should do? I was misrepresented.

 

[justalayman]

I was misrepresented.

I completely agree with you and since you said this:

, I represented myself as agent and purchased a townhouse 1 month ago.

I believe you should sue your representative for the problems you are now facing. That would teach the guy a lesson.


If the restriction is in the CC&R's, your failure to read them prior to closing is your fault.

The listing told me that there is no rental restriction.

If this was MLS, I know they have a disclaimer that clearly states the representations are believed to be true but not guaranteed.

 

[nextwife]

AS a real estate professional, YOU should have done your due diligence and received verification in writing, in advance of the closing, from the association that YOU would be allowed to rent the unit should you buy it. And made the offer contingent on obtaining such HOA permission prior to closing.

You were the "selling agent" correct? You acted as the buyer/selling agent? Cobroker on the deal? As such YOU should have done a better job for your buyer.

 

[aldaron]

If an HOA is more than 50% rentals FHA wont guarantee loans on a property and that nixes a huge pool of buyers for the properties**************.I'm on a waiting list to rent mine out.