DEAR BENNY: I live in a condominium with 100-plus units. Our board recently adopted a rule that basically states that before any unit can be sold, the board has to receive and approve a copy of the sales contract as well as the financial information of any potential purchaser. Is this legal? –Carla
DEAR CARLA: Whenever I receive a question about the legality of something that occurs in a community association, whether that be a condominium, a homeowners association or a cooperative, the first thing I have to do is to look at the operative state law.
Many states have enacted the Uniform Common Interest Ownership Act (UCIOA), which governs and controls all community associations in that state. For example, in UCIOA, there is a requirement that the declaration of the association must contain language regarding "any restrictions (1) on use, occupancy and alienation of the units, and (2) on the amount for which a unit must be sold or on the amount that may be received by a unit owner on sale, condemnation or casualty loss …"