New CA Law to Protect an Owner's Right to Rent Out a Condo Home

 

Some California homeowner associations have been changing governing documents to stop condo owners from renting out their units.

New California law (CA Senate bill 150) protects an owners right to rent out their units in common interest developments starting on January 1, 2012.

An owner in a California common interest development is exempt from any prohibition in a governing document against renting or leasing the unit, unless that prohibition was in effect before the owner acquired title the unit.

In other words - a condo association in California cannot change its private law and stop an owner of a unit from renting it out (as long as the private law change became effective after the owner's purchase).

When renting out a unit, the owner must give the HOA verification of the owners acquisition date, and name and contact information of the prospective tenant.

An owner right to rent under this law does not terminate for certain transfers of title, including, but not limited to, probate, spousal, parent-to-child, adding a joint tenant, and other transfers exempt from property tax reassessment.

For sale transactions, the required HOA disclosures must include a statement describing any prohibition in the governing documents against renting or leasing.  This new law does not apply to rental prohibitions in HOA governing rules in effect before 2012. 

Click here to see complete text of this new law – CA SB 150

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This is for information only and not the providing of legal or tax services.  If you are an owner of a unit or home at a CA common interest development, you should consult with a real estate attorney about your right to rent out the unit.

 

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