Posted by Jesse on August 28, 2005 at 18:26:35:
Thanks for the insights guys. I had to chuckle at John Merchant?s response talking about suing people & not wanting to enter a contract with me. I am happy to say that I?ve always honored my contracts, never been sued, and the ability to see past ?A? has allowed me to be financially self-sufficient in my 20?s. Poor John, from the look of his web site he?s still stuck in the 9-5. I hope John does himself a favor and goes on a vacation.
Bypassing CC&R’s - Posted by Jesse
Posted by Jesse on August 26, 2005 at 13:37:43:
Any advice on how to legally bypass CC&R’s? I am in escrow on a new construction property which has appreciated considerably during the construction period. I would like to sell it, but the CC&R?s in the community say that you have to own the house for a year before you sell. Anyone with experience with this?
Re: Bypassing CC&R’s - Posted by River City
Posted by River City on August 29, 2005 at 06:22:32:
In defense of John M., you asked for advice and although you did not get the answer you wanted from him, it is good advice. These builders know how to enforce their agreements. And, they are not afraid to do it. If you break your contract, be ready for battle.
Oh yeah, don’t bother checking for my website, as I do not have one. I am just a lowly mortgage compliance officer.
Re: Bypassing CC&R’s - Posted by Brian (UT)
Posted by Brian (UT) on August 28, 2005 at 11:44:08:
Jesse
I hope that item is limited to the first year after the purchase from the developer period, or it is going to cause future problems. I know the problem the developer is trying to overcome, but a survey by the National Home Builders found that 50% of first owners of new built homes had to sell within the first two years, and they were not investor-speculators.
I don’t think a cc&r is needed, they developers could put a buy back clause in their original contracts that would survive the contract stating they have the right to buy back the property at x dollars and the terms, and if the builders buyer is a non-occupant I would make it two years.
Brian
Re: Bypassing CC&R’s - Posted by Frank Chin
Posted by Frank Chin on August 28, 2005 at 08:58:32:
Jesse:
I’ve been following the economics of condos as I owned a few of them myself.
Developers have put these restrictions in BECAUSE people bought these units in the “precontruction” stage, prices zoomed in the up market, and then just as the final units are ready the preconstruction flippers all come out of the woodwork, flooding the market with units. Not only are they competing with developers in the later stages, but in some cases among themselves, causing prices to DROP, placing so many units back out on the market at the same time.
If I was a developer, I would follow these boards and see if someone post a good workable answer, then check with my attorney, and plug the loophole.
I was also reading reports about condo prices outpacing SFH in some areas, and the conclusion was a good portion of condos were bought for speculative purposes fueling the RE bubble.
If you bought the unit in your own name, you may be outta luck.
Frank Chin
Re: Bypassing CC&R’s - Posted by John
Posted by John on August 27, 2005 at 22:18:22:
The way I see it you have 3 choices.
Breaching a contract - Posted by John Merchant
Posted by John Merchant on August 27, 2005 at 19:23:51:
Yes, I’ve sued a number of people who didn’t believe in honoring their contracts, so yes, I do have some experience with the situation.
Isn’t it interesting how there are some people who are thinking about Br of C even before the ink is dry on the deal?
Remind me not to enter into any kind of contract with you.