Can you put a do not rent clause on a title?

Question

Hello All,

Can you put a do not rent clause in a house title? If so does that stay even with transfer of ownership or a sale?

Mike Cumbie · Answer

Her best bet is to just write an open letter to the community:

Dear HOA,

As you are aware I am being forced to leave the area due to my job. Since the value of the property has declined so much since I purchased it I am unable to sell it for even a modest loss and would have to take a bath on the entire property. My preference would be to rent it until the market returns and the value gets to somewhere within reason.

You have made it clear that the option is not on the table. Luckily for me though I have a family member who was jailed for crimes against children and having a difficult time finding anyplace to rent to him. I figured I would allow him to stay there free of charge as a caretaker to help maintain my residence until I can return. Seeing as we are related and a "family unit" it should easily fall within the law. I am sure the property values will not take a hit from being included on the offenders registry, Class III is the low one right? I never did understand those things.

Anyways feel free to stop by and say hello when he is there, he really is a nice guy once you get past the blank stare.

Thank you!

Jeff B. · Answer

FUD:-  Fear, Uncertainty and Doubt.  A technique to manipulate those that are uninformed and unwilling to learn :sigh:

Account Closed · Answer

Deed restrictions (restrictive covenants) on a single family house in a planned community are not  uncommon around the country There are many in Florida Here is an example from one in Las Vegas.There might be some type of law from@Bill Gulley state

http://www.city-data.com/forum/las-vegas/1184728-r...

Here are the facts:

• Single family property purchased in 2005, subject to a mortgage of about $220K;
• At time of purchase, the seller (Developer) encumbered the Property with a Deed restriction prohibiting any renting of the Property. The purpose of the restriction was to maintain an "owner occupied" community;
• In 2011, Owner's job requires her to leave the state;
• Property is now worth approximately 50% of balance on the Loan (FMV is about $100K);
• Owner does not make enough to maintain Property in Nevada and rent another property in new state of residence;
• Owner does not want to let the Property here in Nevada go into foreclosure, and expected rental income would likely cover the mortgage payment;
• HOA has made very clear that it will enforce the "no rent" restrictions on all properties in the community.

Question:

Account Closed · Answer

Deed restrictions run with the property and yes you can have a no rent policy.You can check if there is an expiration clause.Is the property in an Hoa planned development

Mike Cumbie · Answer

Ahhhh Thanks Account Closed

I couldn't come to grips with why you would sell a property and then restrict usage (outside mineral rights or air rights). The whole HOA thing makes a whole lot more sense.

Thanks!

Jill Patton · Answer

I'm wondering if......

The owner could "sell" the property with a contract that has a delayed closing and payments due and payable per month.  Not a lease, but a contract to purchase that spells out monthly payments.

I'm assuming that the HOA does not require approval of new residents.

Bill Gulley · Answer

LOL, I was talking about the family perv moving in! Not deed restrictions. :)

Kevin Fox · Answer

Deed restrictions, in terms of those that allowable, their implications, and how to go about enforcing.breaking them, are not uniform for all 50 states.  What is permissible varies from state to state, sometimes even county to county.

If you are suggesting that this restriction in particular is covered under HUD regulations, you may be right. But I find it very hard to believe that a great lawyer couldn't find a way to form a legally binding agreement between the buyer and seller that works to prevent the new owner from renting out the property.

How, then, do mortgages contain a no-rent clause?

Also, I am not sure what your last sentence is referring to or what is meant when you say "family guy."

Harriet Baldwin · Answer

Another issue, who enforces the deed restriction?  Even if something is legal to create, who is going to enforce it - especially if the initial party that thought the restriction was important is no longer around (death or dissolution)...pretty clear with an HOA, less so with a one-off property.  Not a lawyer, but theoretically for a one-off deed restriction, seems like someone would have to litigate to enforce, unless there was some other mechanism for enforcement created up front.

The mixed-use project that we developed in CT has deed restrictions due to a community group's concerns about 'sure, that's today's approved use, but what if in the future you could do X with the property, that wouldn't be okay'.

Bill Gulley · Answer

Pretty sure that's down the alley of HUD regulations, no state issue but your family guy may need to register, family unit cannot be defined by the HOA, that's federal.

I'd dress the letter up a bit, more hat in hand, I bid all of you farewell. LOL Love it! :)

Can you put a do not rent clause on a title?

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