Condo bylaw amendment to restrict rental

This is a discussion on Condo bylaw amendment to restrict rental within the Real Estate and Property Law Questions forums, part of the Legal Questions & Answers Forum category; When my condo was first built the condo bylaws allowed rental but later the bylaws were amended not to allow rental of condos. For the amendment condo board got more ...

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  1. #1
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    Condo bylaw amendment to restrict rental

    When my condo was first built the condo bylaws allowed rental but later the bylaws were amended not to allow rental of condos. For the amendment condo board got more than 75% approval votes from condo owner. This was done in 2002 (before I bought the condo) but I believe they did not follow all the rules to amendment as per the following statement of the bylaws:

    QUOTE
    Any amendment of a material nature must be approved by at least seventy five percent (75%) of the unit owners and fifty one percent (51%) of the eligible mortgage holders. An Eligible mortgage holder is defined as a holder of the first mortgage on a unit who has submitted a written request that the Association notify them on any proposed action requiring the consent of a specified percentage of eligible mortgage holder. Amendment of the material nature includes imposition of any restriction on the leasing of unit
    UNQUOTE

    what I understand from above is that condo board not only should have gotten approval from 75% of the condo owner but also 51% of the mortgage companies. Since condo board did not get the approval from 51% of the mortgage company at the time of amendment, the amendment is not valid. Is my understanding correct? Any help would be appreciated

    Thanks


  2. #2
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    I believe you are correct in your interpretation. The only thing you might not know however is the following "a holder of the first mortgage on a unit who has submitted a written request that the Association notify them on any proposed action requiring the consent of a specified percentage of eligible mortgage holder." It is possible that there were no people who submitted this formal written request.
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  3. #3
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    Clarity on amendment execution

    Appreciate your quick reply.
    I was also confused on the same sentence before and now it makes more sense. Thanks for the clarification.
    What I see is that there are two ways we can look at this
    1) At the time of the amendment there were no mortgage companies who had asked in writing to be notified. In this case, shouldnít condo board put a statement in the amendment after evidence of the majority of condo owner signature, something like "At the time of the amendment there are no mortgage holders who have submitted a written request ........" and lack of such statement makes the amendment void because in its present form itís not clear from the amendment text that if they even looked at the second condition related to amendments execution conditions mentioned in my original post
    2) At the time of the amendment there were some mortgage companies who had asked in writing to be notified and condo board failed to do that which automatically makes this amendment void.
    The conundrum I am going through is I have to make decision if I should just go ahead and rent the condo out based on the fact the amendment is not correctly executed or first approach the condo board and get their permission. Even though condo board has made some exception and allowed couple of people to rent their condos out in the past, based on my experience with condo board they might not allow me or create road blocks. Thus using the later approach (ask condo for permission) would be like stirring up beehive unnecessarily

  4. #4
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    You don't want to break the rules if you don't have to. You should first approach the condo board and ask for permission. If they deny it, then you can ask them about the 51% of the eligible mortgage holders to see if they have satisfied that requirement, otherwise their rules prohibiting you from renting your condo is void.
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  5. #5
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    Hello guys I am quite surprised to know about the implementation of law. Condo bylaw amendment restrict rental but their implementation is in doubt. It is necessary that the law imposed to public at large equally without discrimination. If no one can obey rule of law then court should decide punishment of that specific person.
    Last edited by Miah; 07-22-2012 at 10:01 AM.

  6. #6
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    You should first approach the condo board and ask for permission.
    If they deny it, then you can ask them about the 55% of the eligible mortgage
    holders to see if they have satisfied that requirement.


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    Last edited by Zhane Canalpan; 06-20-2013 at 10:18 AM.


 

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