October 20, 2021
COURT FINDS CONDOMINIUM OWNER EXEMPT FROM SUBSEQUENT BAN ON SHORT TERM RENTALS
In Brown v. Montage at Missions Hills, Inc., a California Appellate Court recently held that a common interest development ban on short term rentals does not apply to owners who purchased their properties prior to enactment of the ban. Plaintiff purchased a condominium in the Montage Development in 2002. For approximately fifteen (15) years, she used the property for short term rentals. In January 2018, Montage amended its governing documents to prohibit its members from renting their properties for short term rentals. Plaintiff filed suit. She argued that the restriction does not apply to her, because she purchased her property before the enactment.
The trial court granted summary judgment in favor of Montage. A court of appeal reversed holding that Plaintiff, as a prior purchaser, was exempt from the restriction.