Your Neighbor's Open House, Your Rights

Q: My wife and I own a condo in a four-unit building. One of our neighbors, who bought the property only two years ago, put her unit on the market in early April. Since then, the listing agent has held three open houses per week -- two hours on Tuesdays and three hours on each Saturday and Sunday. This has created quite a bit of interference in our lifestyles in terms of commotion, driveway blocking, etc. In addition, the asking price has been significantly reduced, thus lowering our comparable value.

Do we have the right to limit formal open houses to the more respectful one time per week?

Do we have any rights in the agent's publication of the lowered price ("price reduced" on the for-sale sign on our building)?

Do we have any rights of approval of the financial condition of a prospective buyer? Our neighbor's inability to cover her mortgage obligation is the reason she is forced to sell now instead of waiting for the market to improve.

A: Living in a condominium has its pluses and minuses. When you buy into the association, you give up some privacy. You have to comply with the legal documents, as well as the rules and regulations enacted by the board of directors.

But it's a two-way street. Your neighbors have to comply with those same legal requirements.

Have you discussed the problem with your neighbor? I appreciate that she wants to sell in this difficult market, and clearly holding open houses is one way to attract potential buyers. But she may not understand the magnitude of the problem, at least as it affects your lifestyle. Perhaps some compromise can be reached.

If you are unable to reach an agreement, you should review your legal documents. That's the first place to look when involved with any aspect of community living. In a condominium, they generally consist of a declaration, the bylaws, and the rules and regulations.

Every unit owner must have a complete set of these documents and should periodically review them to assure compliance, -- yours as well as your neighbors'.

Is there anything in your legal documents covering this issue? Some associations have rules that restrict open houses or limit hours when the property can be shown to prospective tenants.

There should also be a section titled "nuisance." A typical condominium bylaw section would read: "No nuisances shall be allowed in the Condominium nor shall any use or practice be allowed which is a source of annoyance to residents or which interferes with the peaceful possession or proper use of the Condominium by its residents."

If you live in a large multi-unit condominium, you would file a formal complaint with your board of directors. However, because there are only four units in your complex, I suggest that you try to get everyone together either in person or through a conference call. Explain your position and your concerns.

Your neighbors may or may not be sympathetic. They may also plan to sell their units and want the same aggressive representation by their real estate agents.

If your neighbors turn you down, that's condominium living. In my opinion, it is democracy at its best and at its worst. Your only alternative is to move out and either rent or sell.

You also asked whether you can control the advertisements and sign that indicate "price reduced." Again, you have to review your legal documents. Some associations impose restrictions on advertising; others do not.

Finally, do you (and the remaining owners) have any rights to approve a prospective owner? The simple answer is no. That's in contrast with cooperative housing, where the membership committee of the co-op (or the board of directors) does have the right to reject a potential owner if the financials are not acceptable. Unfortunately, this "right of refusal" has often been misused, and indeed sometimes is just pure illegal discrimination against the potential buyer.

In the Washington area, to my knowledge, no condominium association has this right.

This does not mean that you may be stuck with an insolvent owner. Lenders have significantly tightened up their loan requirements in recent months, and I suspect that if the potential buyer passes muster with a lender, this should satisfy you that, at least for now, the buyer has good credit.

Benny L. Kass is a Washington lawyer. For a free copy of the booklet "A Guide to Settlement on Your New Home," send a self-addressed stamped envelope to Benny L. Kass, 1050 17th St. NW, Suite 1100, Washington, D.C. 20036. Readers may also send questions to him at that address or contact him through his Web site, http://www.kmklawyers.com.