Help - Condominium Board Approval Lease-Sale
I have a condo in WPB FL and had gone into contract for sale with my current tenant. That contract is now null and void.
The Prop. Mgr. tells me now that at least one other owner near my tenant said he would leave if my tenant bought it. His lease is up on Aug. 31.
Although it is not in the Condo Declaration Docs that sales are subject to Board Approval, asside from ammending the By-Laws, could the Board stand up and say that this Buyer is not acceptable for the community?
The Tenant Buyer is now threatening me with "discrimination". Really, his own actions disregarding the Rules & Regs have brought this on himself.
Thanks for your imput. Joan
[ Edited by earl45 on Date 08/16/2003 ]
Have you or the tenant been notified of problems prior to this happening? If not you might have some grounds for a discrimination case. I am just assuming there is a race/sex issue.
On the other hand what have they told you to say the deal is dead? I do not think they can stop you from selling the unit, unless there is some type of clause that gives them first right of purchase, then you sell to them.
Just saying we do not want that person to buy or live here is discrimination. You should be dealing with the tenant and letting them know what the others are saying that it is not you. Let him get an attorney, and fight the battle.
From the information you provided, it does not appear that the board can block the sale of your unit to your tenant.
However, if the tenant purchases the property and continues to violate the bylaws, the board may be quick to levy fines. Unpaid fines, can then be foreclosed upon.
If you were advised some time ago that your tenant was violating the bylaws, then you should have taken the issue to the tenant -- not defended him. If the tenant continued in his violations in spite of his notice, then you had grounds to terminate the lease. Quite often, condominium covenants with hold the owner directly responsible for the tenant's behavior and make it the owner's responsibility to insure that his tenant understands the bylaws and abides by them.
I thought the noise issue was settled between my tenant and others at that Board Meeting when I stood up for him.
Apparently it has recently resurfaced and
I will get a violation notice.
I verbally in person told him in early July that his vehicle registration lapsed in June.
Also, it's a junker eye sore car. He laughed and said he needed to move it.
It's now August and I believe the Prop. Mgr. did give him a violation warning.
It's neon impossible now to talk with him as I cancelled the sale on August 12. He is fuming at me. He really needs to lamblast his Lender Agent -- they did not abide by the contract --but then that's difficult since apparently he is some how related to them.
Through my Title Company Agent, I told my Tenant that I don't want his deposit money, just that he leaves the apartment
as he found it when he moved in. During the Contract period, he wanted his $500 security deposit back for the apt. and I gave it to him, leaving me totally without any of his funds for repairs should he get
nasty and break up walls. Which by the
way his Lender Agent insinuated could happen -- this was at the Contract signing. I really felt under duress. At the time I didn't know they were somehow all related.
Funny also how he cryed at my door in May with his wife that the rent money was all he had in the world, no savings account for a rainy day. So, what do I do, I give him back $250 of his rent money. I liked him and his family and wanted to help.
Then suddenly around July 5, when he was late on his July payment, he comes over and says he wants to buy the place.
Well, guess what -- he has an IRA account. I tell him I don't want to sell it
but perhaps maybe in Jan. -- that won't due for him, so I agree to sell now.
Also, did you ever have a tenant insist on
"new" appliances when one breaks down. That's really rich!
Sorry, I've spouted off all too much, but believe me, I have always gone the extra
mile with these people and I'm finally over it and learning important lessons at my
age. Joan
[ Edited by earl45 on Date 08/17/2003 ]
Joan,
Let's hope that this "seminar" in landlording will not prove to be too expensive for you.
The number one rule of landlording is: run your business as a business. True you are in a people business, but, you cannot afford to become emotionally involved with your tenants.
Thanks Dave, I thought about what you said and really, I'm not emotionally involved. I'm just not hard crusted.
At now 61, I've been way down too and just wanted to help them out.
They are now screaming "discrimination" at me after trying to buy the apt. and my
nulling the contract due to their Lender's
multiple contract violations. I understand they are somehow related to the Lender's Agent. They're just blowing smoke, they like to use scare tatics. Just rolling off me.
Joan
Quote:I'm not emotionally involved. I'm just not hard crusted.
OK, let me restate my caution. It appears that you allowed your tenants to play upon your sympathies, then they took advantage of you.
This is a common scenario with owner managed rentals. We get close to the tenants, we get to know them. When they have a problem, we want to help.
By maintaining a professional business demeanor, the tenants will not penetrate that "hard crust" in the first place.
Okay Dave T., you are right, you win.
I admit, I never wanted to be a landlord, but at the time I had no other option --
selling wasn't an option as the community during the last 5 years had many, many foreclosures. Values just now starting to rise. We have many Investors now who bought the foreclosures an own multiple units.
Attended BOD Meeting tonight 08/18 and of the 3 Board members, 2 showed up for
the quarum plus the Prop. Mgr. and one other owner was there. One Yea and one Nay from the Board, so they will not
be giving me their written recommendation not to re-new tenant's lease.
Also found out that another unit same as mine and comprable (a foreclosure) listed at $60,000 and has a contract on it, but don't what the sales price is until it closes. Mine was in contract for $45,500 which I was okay with at the time until all the troubles I've already discussed.
Now, I guess I have to get a lawyer ASAP. Although I really don't want to try "again" with this tenant for a sale, perhaps I should just up my price a bit and get this all over with. Will see what a Real Estate Lawyer has to say first. [ Edited by earl45 on Date 08/19/2003 ]
I would sever all ties with this tenant.
This guy sounds like a problem waiting to turn into a crisis.
Looks like you may be able to make a $15,000 profit by selling your condo to someone else. Nice !!
An excellent example of why you should be "friendly"....but never "friends"...with tenants. Its not easy for many of us who were brought up to always help people out, but that wont work in business, you'll get screwed every time. You look out for yourself first, everyone else comes second.
Hey,
Just some general comments about being a landlord, that might have helped here.
1) Do you want a quick lie-detector for tenants??? Here it is: If they are talking, they are lying. Every word that comes out is a lie. Use this system and you will save yourself a whole lot of time and money.
2) If you decide to manage the property yourself, do NOT let anyone know you are the owner. You are the property manager; a company or a group of investors owns the properties. That way you are not the one who is making the rules, someone else is. Spend the $10 at Kinkos and get some Business Cards printed up that say Property Manager.
So combine the two rules above:
Tenant--"My wife died again this month, so I can't pay the rent"
You--"I am so sorry to hear about your wife. Third time this year, right?"
Tenant--"Yeah"
You--"Well if it was up to me, I would let you stay in the house for free. But my boss...well you know...he doesn't see things like I do. So I'll have to pick up the cashiers checks from you tomorrow"
Tenant--"But I don't have the money. I had to spend it on beer and big screen TV...I mean casket."
You--"Oh, that is terrible. I wish I could help you out. But that mean boss of mine...he is going to want his money. Or he is going to ask me to evict you. And I hate standing in line at the court house."
Tenant--"Oh...well I could give you half"
You--"That is great!!!! Give me one check for half and another check for half. But I need both tomorrow"
You get the idea.
It does not sound like the HOA could block your sale. Why not sell it to him take your money and he is no longer your problem. if he continues to violate the by-laws that is an issue between him and the board.
Thanks to all who have replyed. Bruce, I enjoyed chuckling -- its been a while.
I am much more relieved, I hired a top notch RE Attorney 08/20 and have asked that Tenant, and his nasty Brokers go through him. They all should be receiving his letter about that soon.
Prior to this, I felt like they would try to steal my property somehow. Now I am very protected and RE Att. confirms I am well within my rights in nulling the Contract. Also, that the lease is "self-ending" on Aug. 31. I am authorizing Title Co. to return Buyer/Tenant's deposit, which I felt I had no right to put a claim on all along. Title Co. was rather insistant I put a claim on it.
Tenant did call me last night 08/21, but screening calls and I will check with my lawyer first. At least though rather late in the events, he wasn't screaming, he was pretty quiet. Perhaps he has seen the light and knows he's in the wrong.
Between you and me, I do feel him and the Condo Board deserve each other. (smile) Perhaps his junker expired plate car was finally towed which I had warned him about back in July.
Members, your "tough love" support is really helping me get through this.
Best wishes, Joan [ Edited by earl45 on Date 08/22/2003 ]
Update:
Well, dang, so much for getting a "top gun" attorney at $250 an hr. Just when I was starting to feel better, but poorer, and thought that alone would be worth having him on my team. I'm probably just pocket change for him.
Right now I get the feeling that there's no one on this earth in Florida at least to place my trust in concerning this matter except for my own true self.
I initially saw this "top gun" on 08/20 and bam he was going to put out his letter on my behalf in the mail the next day. Well, come Friday, 08/22 at 4:00 p.m. still had not dictated it. Thanks alot.
Took matters into my own hands, left message for Tenant/Buyer that I was releasing his escrow monies and mailed him off my own letter immediately and a letter to the Title Company telling them to release his monies and sent my lawyer a copy. I doubt his letter even went out Friday night, probably won't be typed up until Monday and concerned parties wouldn't receive it until Wed. or Thurs.
Meanwhile my Tenant/Buyer probably would have been calling and calling me this weekend and upsetting me more. Thus far all is nice and quiet.
I'd like to give the "top gun" a swift kick on his butt [ Edited by earl45 on Date 08/23/2003 ]