Home Selling in Durham>Question Details

Elizabeth Lo…,  in 29745

Can HOA refuse to allow Owner to rent in NC? Restrictions not in orig docs. Client being transferred out of state and has been unable to sell.

Asked by Elizabeth Lord, 29745 Sun May 9, 2010

Can't leave vacant due to insurance regs. Will lose job if she doesn't accept transfer. What should they do?

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I need to make sure that I'm not giving legal advise here, but if I was to research the issue first I'd look to see if the HOA was created prior to 1999. This year is the dividing line between where statute applies and when the covenants are treated as a contract .

The general rule is that all parcels existing under a properly recorded covenant must be treated equally. Any restriction must me reasonable (reasonableness determined by looking at the deed, plat, and declairation together). If there is any ambiguity it has been a tradition that the free use of land prevails.

If you ever get into a disagreement, always check to see if there is an agreement to avoid litigation in the recorded declairation and follow it in good faith.
0 votes Thank Flag Link Fri Jul 16, 2010
Another option is to have her sell her property with seller financing. Technically, all she'll need at closing is enough cash for her down-payment on her new place, the full commission, and her portion of the closing costs.
0 votes Thank Flag Link Mon May 10, 2010

I would check the full covenants in order to see if you have any restrictions. Keep in mind the subdivision is governed by the covenants. If you do not see any restrictions then they shouldn't be restricting you.

I hoestly think you should consult a real estate attorney. It will be money well spent and peace of mind and you can right it off as an expense to your rental income.

Best of luck with HOA.
0 votes Thank Flag Link Mon May 10, 2010
The guidelines regarding renting would be under the covenants for the neighborhood. There is no "blanket" law that would not allow a homeowner to rent their property. I would review the complete set of covenants for the association and then speak with a real estate attorney if there is no documentation blocking the rental and the HOA is having a concern with the possible rental. Do you know if anyone else in the neighborhood is renting out their home or do you know a renter there now?
0 votes Thank Flag Link Mon May 10, 2010
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