BOSTON HOMES BLOG

Pending sales fall in August

— By: Marilyn Jackson

Pending sales of condos and single-family homes in August fell in year-to-year comparisions, but the number of single-family homes placed under agreement between July and August increased, according to the Massachusetts Association of Realtors.
For condos, the pending sales dipped from 1,466 to 1,435 in a month-to-month comparison. In August 2009, pending sales of condos totaled 1,770.
Kevin Sears, broker-co-owner of Sears Real estate in Springfield and president of MAR, said that the rock-bottom interest rates may be starting to have an impact.

Petitions to foreclose drop, but deeds nearly double

— By: Marilyn Jackson

A record number of foreclosures were recorded across the state in July, but the number of petitions to foreclose dropped, according to the Warren Group, which publishes Banker & Tradesman.
The petitions are the first step of the foreclosure process, and many times the financial problems can be resolved before the properties are sold.
Fewer petitions may be a hint that the housing crisis is abating. The federal government has created programs to help rescue homeowners who are facing foreclosure.

— By: Linda Goodspeed

 

Amending condo bylaws is a serious matter

Q:

I own a condo in a four-unit building. Currently, we have three owner-occupants. The fourth owner is a single woman who is renting her unit. We have had a succession of tenants in that unit. They are noisy, have visitors in and out; one of them smoked and stunk up the common areas.

It’s been very unpleasant for the rest of us. We’re wondering whether we can change the bylaws to prevent owners from renting their units, and if so, when would the new rules go into effect?

Our intent is to get an owner in the unit. If we were to accomplish that goal by forcing this owner to sell, could we then vote to change the rules back and allow renting? Could the current owner sue us if we did something like that?

A:

You can change either the condo association bylaws or the master deed to put into effect any restrictions, or take off, any restrictions you like, just so long as you garner the proper number of votes of the trustees to do so.

Usually changing the bylaws or master deed requires at least a two-thirds or more majority vote of the trustees. You should check your condo docs to find out how many votes your association would need to pass an amendment to either the bylaws or master deed.

Generally, it is easier (requires fewer votes) to amend the bylaws than the master deed. But you need to check your association’s documents to find out the exact procedure for your building.

According to my legal sources, there is at least one instance where a judge has allowed a condo rental restriction amendment to take effect retroactively. Don’t count on it happening here. Your association would not be able to enforce any rental restriction amendment until the end of any current tenancy.

In a tenancy-at-will situation, this would mean on 30 days’ notice. In a lease situation, it would mean at the end of the current lease term, even if it were a self-renewing lease.

So for instance, if the current lease expires Dec. 31, even if it were a self-renewing lease, you could enforce the new rules Dec. 31.

As for changing the rules back again if the current owner sells, yes, you could do that as long as you abide by the amendment voting procedures. Will the current owner sue the association if you were to do this? I doubt it. But then again, people sue for all sorts of reasons even when they don’t have a legal leg to stand on.

Finally, I know you didn’t ask me the merits of doing something like you propose. But this is an advice column, so here are my two cents: Don’t use a sledgehammer to kill a mosquito.

What is the problem you’re trying to address by amending your bylaws? Is it to get rid of a bad tenant? Then address the bad tenant, not your bylaws.

If the tenant is violating the bylaws, destroying the common areas or behaving in a manner that is interfering with the enjoyment of your property, you have every right to take action against the tenant.

If the problem is a bad owner – not paying condo fees or meeting other obligations to the association – you are actually better off having a tenant in the unit than a delinquent owner. Under Massachusetts law, a condo association can direct a tenant to pay his/her rent to the association until the owner’s delinquency is paid in full.

So amend if you must. But make sure you’re amending – and un-amending – for all the right reasons.

 

 

 

 

 

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