If owner bought condo at auction, can they rent it without HOA’s approval?

Q: Our condominium has a foreclosed unit that was sold at auction. The new owner has ignored our condo’s requirement to have tenants apply with the association before leasing the unit. If an apartment is bought through a foreclosure, can the purchaser rent the unit without the association’s screening of the tenants? — Jean

A: Many community associations’ controlling documents require that prospective purchasers or renters be screened by the association before being allowed to buy or rent the property.

The screening process needs to be done fairly, applying the same standards to all occupants. This is easy to accomplish when a new tenant or purchaser is applying.

However, when a property transfers to a new owner by operation of the law, for example, when someone inherits it, or the property is foreclosed, there is no opportunity for the association to screen the new resident.

Associations are unhappy with this arrangement but have to live with it.

The good news for associations is that even though the new owner did not have to be approved, they still have to follow the community’s regulations, just like the other owners.

This means they must pay monthly dues, special assessments, follow community rules and get the prospective buyer or tenant approved if they want to sell or rent the property.

If they ignore the rules, they have the same penalties as everyone else.

Since the new owner is breaking your community’s rules, the board should use their available tools, such as levying fines and possibly taking legal enforcement action.

But, before taking these steps, it would be a good idea to speak with the new owner and make sure they know how the community works.

This vital information is often shared during the application process they did not go through, and it is possible they are not flouting the rules; they just do not know what they are.

Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He practices real estate, business litigation and contract law from his office in Sunrise, Fla. He is the chairman of the Real Estate Section of the Broward County Bar Association and is a co-host of the weekly radio show Legal News and Review. He frequently consults on general real estate matters and trends in Florida with various companies across the nation. Send him questions online at www.sunsentinel.com/askpro or follow him on Twitter @GarySingerLaw.