Brief Fact Summary. Jahren made leases to tenants in violation to a lease restriction clause in the condominium declaration of Woodside village Condominium Association.
Synopsis of Rule of Law. A restriction clause in a condominium declaration will be upheld by the court unless it is arbitrary, against public policy or violation of a fundamental right.
Issue. Whether a lease restriction in a condominium declaration amendment is valid.
Held. A condominium is a creature of statute unlike ownership of other property. That being said the court believes that it is up to the legislature to give more rights to unit owners against condominium boards. The court must look to the statute that creates rights and the declaration to see if the lease restriction is fair. In general condominium ownership is more restrictive. Reasonable restrictions concerning the use, occupancy and transfer of units is essential to properly run a condo complex. This is because condominium owners live so close to one another these rules help the health safety and welfare of all unit owners. Courts are reluctant to overturn a clause in a declaration. Condominium boards have two powers; restrictions in the Declaration and rules. If the issue before the court is a board rule it is more likely to decide it invalid if it is unfair compared to a clause in the declaration which is the case here. Condominium boards have statutory authority to make such amendments and they will typically be upheld.
Discussion. Courts are reluctant to overturn a clause in a condominiums declaration that was properly voted on by the board. Condominium property rights are generally more restricted and unless that high threshold is met, the restriction will be held valid.