N.B. from Burlington, County, New Jersey writes:
Dear Mister Condo,
How can the Master Deed be amended to limit the number of units and investment buyer can own?
Mister Condo replies:
N.B., in a word, it can’t. You can’t limit the number of units a buyer may purchase. I think what you want to know about is whether or not you can limit how many units can be rented. That is called a rental cap and that may or may not be possible depending on how may units are already investor-owned and how the owner-occupied units vote on the matter. If you are going to attempt to modify your Master Deed, I strongly advise the use and guidance of a qualified community association attorney. The method for modifying the Master Deed is typically laid out in the association’s governing documents. It is not uncommon for a supermajority or other large majority of unit owners to vote in favor of the document amendment or change. Since it is not in the best interest of the investor to vote in favor of a rental cap, it might not be possible to pass the amendment. If all of the rules are followed and the proper majority can be attained, it may be possible to amend your document and place a rental cap in place. Keep in mind that the existing investor-owned units will likely retain their right to rent as that was the condition when they purchased their units. Good luck!