Unsold Condos Prohibited From Renting
Condominium units can be good options for first-time home buyers, for those who want a vacation getaway, investors, and those who want to downsize their living space. These housing units are usually less expensive than a single family home and can include attractive amenities.
In recent years, speculators entered into the picture, hoping to make a financial killing by buying low and flipping to a third party even before the units were ready for sale. Others wanted to buy solely to be able to rent the units.
As a result, many developers started to impose rental and resale restrictions. The most common were requirements built into the purchase and sales contract that limited a purchaser from renting the unit out for at least one year. Other provisions in the contract either prohibited a purchaser from flipping the contract, or if that purchaser really wanted to sell within a period of time (usually one year) the developer had the right of first refusal at the original purchase price.
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