FHA Extends Flipping Waiver Through 2014

Typically, purchasing a Federal Housing Authority (FHA) property involves  a clause that prohibits the buyer to resell the property within the first 90 days of purchase. This preventative measure common among FHA insured mortgaged properties, but is sometimes included on cash contracts as well.

The FHA has waived that rule on some contracts and allowed flipping since January 2010. They hope this allowance will encourage investors to purchase and renovate blighted homes and offer turn-key home options for first time home buyers and others. Ultimately, this strategy will boost sales . Apparently, this strategy seems to be working. Since the FHA first extended the rule, it has been extended three additional times.

Does condo seller have recourse if board rejects buyer?

 

FORT LAUDERDALE, Fla. – Nov. 29, 2012 – Question: I am trying to sell my condominium, and I just found out the association didn’t approve the buyer. Is there anything I can do? – Sara

Answer: Yes. But in most of these instances, the buyer and seller just move on, aggravated.
In your condo, the “Declaration” and other key documents contain the rules under which you and your neighbors must live by. These documents must address whether the board has the power to approve prospective buyers and tenants.

You may find that although the board has been approving buyers for years, it doesn’t actually have the power and is only doing it “because this is the way we have always done things.” If that’s the case, consider having a lawyer write a sternly worded letter to the board. That may be all it takes.

Even if your association has the power to approve the buyer, its decisions must be applied consistently and for good reason. The board can’t deny a buyer for such things as race, religion and ethnicity. If it does, that certainly is grounds for a lawsuit.
Absent something egregious, most sellers decide it’s not worth the time and expense to file suit. It’s just easier to find another buyer. And not many buyers will want to fight the denial because they don’t feel comfortable living in a community that doesn’t want them.
The board may not be required to reveal the reason for denial. But try to find out why – and that will help you in your search for a new buyer.

About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program.

The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

Copyright © 2012 Sun Sentinel (Fort Lauderdale, Fla.), Gary M. Singer. Distributed by McClatchy-Tribune News Service.