Condominiums are legally created by allowing builders to divide parcels of land either vertically or horizontally to create condominium associations. By definition, such laws were written so that condominiums could exist. In a condominium building, owners can claim all of the airspace within their specific unit. However, the building itself is jointly owned by every unit owner in the structure. In other words, each owner can claim a part, and when all of the owners join together to make it “whole”, a committee must decide to deal with issues affect everyone in the association.
This system exists to help decide the proper way to make needed repairs and ensure all issues affecting the condominium owners are handled promptly and fairly. Should a building need significant repairs, all owners are affected, and this problem becomes the top priority. There are, in fact, valid reasons relating to regulating the leasing of condominium units. Some existing regulations are the same for owners in every building. However, associations can take the making of rules and regulations to the extreme. Occasionally this is necessary, but in other cases it makes life unpleasant for owners of condominiums in the complex.
Among the major lenders in the mortgage market, the FHA’s guidelines are the most stringent. Because of this, many of the condominium associations adhere to the standards set by the FHA to ensure borrowers wanting to buy units in the complex can borrow from anyone. For these reasons, it is valid condominium association and related developments create and enforce rules, including those requiring a minimum level of owner-occupancy. In fact, some associations limit unit leasing entirely. Different condominium associations set various standards of rules, some of which are more stringent than others. Knowing the rules before buying property in a complex is vital to ensuring happiness and avoiding eviction.