Dear Michael: I own a condo which does not have restrictions on renting out. I have now rented out my unit and the HOA wants to change the Bylaws. Can I still rent to my current tenant?
Answer: You are grand-fathered in. Rental restrictions, if any, normally exist in the condominiums CC&Rs (Covenants, conditions and restrictions), and not in the condominium bylaws. The bylaws usually provide the Board with specific authority to govern the homeowners association, while the CC&Rs provide restrictions against specific use (such as rental) of the unit. If your homeowners association rules and CC&Rs do not currently prohibit the rental of the home within the community and you already have a fully executed rental agreement, any change to the rules to restrict rentals will not affect you since the HOA’s rule changes are not and cannot be legally retroactive. However, if the homeowners association does approve a rental restriction and your tenant moves out, you may certainly find that you cannot rent out your home again. Keep in mind that in order to pass new CC&R’s, members (owners) have to vote a majority approval rate of almost 90 percent, and this is no easy task!
Dear Michael: The square footage of my home is listed at 1500 square feet on the tax roll. I believe it is closer to 1800 square feet. How can I find out the exact amount? I want to list my home and cannot determine the value without proper square footage.
Answer: You local building and safety office will have all recorded documents including any additional square footage. You can request all permits (if any) on your home. All records and history should have been filed and recorded at building and safety from the time your home was built. If additions were made to your home and completed with permits city hall will have them on record. If any additions to your home were done without permits you will not be able to add this addition to the total square footage of your home. You can define an unpermitted room as a “bonus room”, but it must be disclosed as a separate room without permits and the square footage must be excluded. You can also hire an appraiser to measure your home. It is crucial to disclose the square footage of your home exactly as it is. The appraiser for the buyer will also measure your home when appraising for his/her loan.
Dear Michael: I am purchasing a property that has a city violation clouding the title. The garage has been converted without a permit. The seller states that he will build a carport at the driveway before the close escrow. I am skeptical about depositing my “earnest money deposit” in escrow. Is there a risk with moving forward with this purchase?
Answer: My experience with converted garage is that they cannot be permitted and the violation will not be lifted until the seller re-converts the garage to its original use. If you have already opened escrow, then time is of the essence. Go to building and safety and find out more about the possibility of a carport. In order to build a carport you will need a signed petition from surrounding neighbors. And even if the neighbors do approve the carport the city can still deny it. The process can take up to 1 year. I suggest you hold off on depositing any money to escrow. Ask the seller or his/her agent to put the property on hold until the garage has been reconverted to its original use. Once the lien is lifted by the city you can deposit your money to escrow and proceed with the purchase. If the seller does not agree then consider cancelling your purchase. Keep in mind that the seller will be stuck with the same problem when the next buyer submits an offer. No lender or title insurance Co. will approve the sale on a property that has a cloud on title. Please contact a real estate attorney for further evaluation.
Michael Kayem is a Realtor with Re/max /Execs serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com