By Sandra L. Gottlieb, Senior Partner and Community Association Attorney at SwedelsonGottlieb
California Civil Code Section 1360.2 went into effect on January 1, 2012, a little over one year ago, and states that any new provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests is not applicable to anyone who purchased before the date the governing document and/or amendment was adopted or recorded unless that person expressly consents to be bound. Notwithstanding the limitations created by Civil Code Section 1360.2, many community associations are still adopting new rental restrictions to be applied to new owners or transferees. What they are learning is that not all transfers of an interest in a property will be covered by Civil Code Section 1360.2 which allows for certain exemptions from a leasing restriction. Certain transfers of property do not constitute a change in ownership and therefore, the new owner may not be subject to any provisions prohibiting leasing that were adopted after the new owner obtained title to the separate interest (i.e., unit or lot).
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