About Montgomery County, MD

Sometimes homeowners' association, coop and condo boards forbid owners from renting their units, thus forcing owners to sell the property in what is not only a depressed market but is in competition with many other properties for sale. This is particularly common in coops because the burden of a mortgage default is shared by all residents of a coop, and there is a belief that absentee landlords are more likely to default or fail to pay the coop fees. The restriction on rentals can be very burdensome on an individual owner who is transferred out of the area or who has outgrown the property but didn't want to sell just yet, It seems so unfair that a board can limit the owner's ability to rent and force the owner to sell, but it is legal. Not all associations have restrictions like this. For example, Kenwood Forest I and II in Chevy Chase MD do not restrict rentals, and many current landlords were once owner occupants there. This issue has been litigated in many states, but all the court cases have held that community associations have the right to limit -- or even prohibit -- the number of renters in those associations.

Owners within condominiums and homeowner associations are bound by the legal documents and the rules and regulations of their association -- as they currently exist and as they may be properly amended from time to time.

In a condominium, the legal documents are generally called (1) the declaration and (2) the bylaws. In a homeowner association, those documents are called covenants, conditions and restrictions (or CC&Rs).

A board of directors has the right to enact reasonable rules and regulations, so long as those policies do not directly conflict with the legal documents. In order to amend legal documents, it usually takes a supermajority vote of all of the owners. Sometimes this is a 66 2/3 vote and sometimes it is as high as 75 percent. Why? The reason is because the other owners bought into the association based on the existing documents -- and only you and a supermajority of owners can make any changes.

In the area involving restrictions on renters, the courts have held that a board cannot make the change merely by a rule enacted by the board. It takes a bylaw amendment to do this.

If your association is following the rules regarding amending your legal documents, and if that vote is positive, you and the other owners are legally bound by those changes, so don't snooze when your condo association is proposing new guidelines or restrictions. In addition, before you make a decision to buy into any community with a board of directors, whether it is a home owners association, a condo or a coop, take the time to read the documents that you receive. The timeframe for the review is not very long, so pay attention and read carefully in order to avoid any lamentable surprises.

I think that I shall never see a poem lovely as a tree

Check out this awesome tree! I recently sold a townhome in Rockville, Maryland that overlooks this gigantic tree and I found it most fascinating. It reminds me of the Joyce Kilmer poem I learned as a child, TREES.

CAN YOU IDENTIFY WHERE THIS TREE IS LOCATED??

TREES

By Joyce Kilmer 1886 - 1918

I THINK that I shall never see

A poem lovely as a tree.

A tree whose hungry mouth is prest

Against the sweet earth's flowing breast;

A tree that looks at God all day,

And lifts her leafy arms to pray;

A tree that may in summer wear

A nest of robins in her hair;

Upon whose bosom snow has lain;

Who intimately lives with rain.

Poems are made by fools like me,

But only God can make a tree.

Rockville Metro station neighborhood market report

There are 46 homes on the market FOR SALE or RENT within 1 mile of the Rockville METRO Station at the time of this report (02/09/2010).

Of that count seven are RENTALS. The least expensive rental is a studio apartment listed at $1,090/month, rent includes your electric and gas. The most expensive RENTAL is a four-bedroom two full bath detached home listed for $2,100/month.

Of the 39 homes on the market FOR SALE, the least expensive is a two-bedroom one full bath detached home listed for $148,500. The most expensive home FOR SALE is a five-bedroom three full bath one half bath three level new construction detached home, with a two car garage, and a fireplace listed for $1,895,000.

If you or anyone you know would be interested in one of these homes, or looking for more detail on this set of homes, please get in contact with me. You can also find information on homes near other METRO Station on my blog.

There has never been a better time to buy a home!

First-time buyers who act now can save $10,000 on their new home in the first year alone.

The first $8,000 is the amount of the tax credit eligible first-time buyers can receive if they get under contract by April 30, and close by June 30.

The other $2,000 comes as a result of the historically low interest rates that are currently available. It is expected that mortgage rates will increase when government support ends in late March, meaning there is an opportunity cost for waiting even an extra couple of weeks.

Consider the impact of rising mortgage rates on a home's affordability. If you buy a home for $300,000 with 10 percent down and a 5 percent 30-year fixed-rate mortgage, you will pay $1,449 per month in principal and interest. If in a few weeks rates go up to 6 percent, the monthly payment would increase to $1,610. The annual savings on mortgage interest is slightly more than $2,000. What's more, the buyer who purchases now will enjoy that same level of savings each year over the course of their 30-year loan.

While the example above applies to first-time buyers, existing homeowners who choose to purchase a new home while the $6,500 tax credit is available can save thousands of dollars, too.

There has never been a better time to buy a home!

Shady Grove Metro station neighborhood market report

There are 37 homes on the market FOR SALE or RENT within 1 mile of the Shady Grove Metro Station at the time of this report (2/9/2010).

The least expensive of the 14 Rentals is a two-bedroom garden apartment listed at $1450/month. The most expensive RENTAL is a five-bedroom three full bath detached home with fireplace and a two car garage listed for $3300.

The least expensive of the 23 on the market FOR SALE is a two-bedroom, two bath condo listed for $225,000. While there are five bedroom homes on the market in the area, the most expensive home FOR SALE is a four-bedroom three full bath one half bath detached home, with a two car garage, a fireplace all within walking distance to the Metro Station listed for $699,000.

If you or anyone you know would be interested in one of these homes, or looking for more detail on this set of homes, please get in contact with me. You can also find information on homes near other METRO Station on my blog.