Association Protects Owner's Name

Robert Griswold | Steven R. Kellman | Ted Smith
26-Jul-1998 Sunday

This column on issues confronting renters and landlords is written by Certified Property Manager Robert Griswold, host of "Real Estate Today!" (KOGO Radio, AM 600, 1 p.m., Saturdays) and by attorneys Steven R. Kellman, director of the Tenants' Legal Center, and Ted Smith, principal in a law firm representing landlords.

Q: I own a rental condominium and have a great renter. Unfortunately, a neighbor who is conducting a business out of his unit is disturbing my renter.

I have verified my tenant's allegations but have been unable to find out who are the owners and/or renters of the unit in question.

I have researched my association bylaws that confirm my rights of access to information, as does the civil code sections under the Davis-Sterling Act.

However, the management company refuses to divulge either the name of the owner or the tenant unless the board approves and the board refuses to release any documents for review other than the basic invoices for association operating expenses. It claims that all other documents are exempt based upon attorney/client privilege.

Is the management agent for my homeowners association required to release these records to me even though the board won't authorize their release?

A: Griswold: The association management company is the agent for the board of directors and may find that it is in a very uncomfortable position based on the facts you present.

You definitely have certain rights of access to records, which are subject to certain limitations. Under California Civil Code 1363 and the state Corporations Code (Sections 8330-8338), all members have the right to inspect records of the association upon reasonable notice during normal business hours as long as the request is for a purpose reasonably related to such person's interests as a member.

The code does provide for clarification regarding which records are required to be kept, as well as uses that may be prohibited, especially involving membership names or address lists.

Assuming that your request meets these requirements, suggest that the board contact its legal counsel to clarify its rights and responsibilities concerning your request.

If the board still is unwilling to cooperate, then you may need to seek your own legal counsel or other representation.

Another avenue is to check ownership records on file with the county recorder. However, in many cases, ownership records will not reveal the identity of the actual occupant, if, for example, the unit is being occupied by a son or daughter of the owner.

Records kept by the association tend to be more reliable in terms of your being able to make contact with whomever the responsible parties are. And if the unit is being rented, the homeowners' association should know who the renters are.

Kellman: Certain association records must be made available to condo owners. The bylaws usually will set forth the procedure for access to these records.

It is very suspicious that the records you seek are being concealed behind the excuse of "attorney/client privilege." This privilege protects communications, including writings, between an attorney and his or her client.

Routine association and accounting records should not fall into this category unless there is some ongoing litigation with the condo association (not uncommon these days).

It is certainly unfair and improper to have an attorney suggest that these records may be cloaked from view by those entitled to see them.

If the bylaws do not have a procedure to resolve your dilemma, the courts certainly may oblige you.

Q: I am a renter and read your column regularly. I am beginning to see and hear a lot about very large rent increases and feel that now may be the time to purchase a home rather than continue to rent.

I just don't know if I have enough money for a down payment. A friend told me that he saw on TV a description of a program that enables first-time home buyers to purchase foreclosed homes for a down payment of $500 and a monthly mortgage payment equal to the median price for the area. Have you heard of this first-time buyers program or the name of the company making this special offer?

Griswold: No, I have not heard of this specific program. However, there are a large number of attractive financing programs to assist first-time home buyers.

The number of offerings and the specific terms and conditions fluctuate weekly so be sure to thoroughly check out all of the details.

Watch out for any deals that seem too good to be true as they probably are. While many are offered directly to consumers by private lenders, the best programs (and the only ones I would recommend) are backed by such institutions as the federal Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) or the Veterans Administration (VA).

These institutions establish guidelines and will purchase first-time home-buyer loans on the secondary market. The availability to package these loans and sell them to institutional investors is extremely important to the financial markets and you should find many programs that meet the institutional criteria.

You should also be aware that the definition of a first-time home buyer can vary. In some instances, it is not what you might think -- someone who has never owned a home. Some programs define a "first-time home buyer" as any individual who has not owned a home during the last three years.

With rents rising, the advantage can tilt to owning a home rather than renting. Renters need to be aware of this, and to inquire about low down payment home loans. I encourage you to take advantage of the attractive financing available today for all buyers. Good luck!

IF YOU'RE A TENANT OR LANDLORD, the authors stand ready to answer your questions in this column, although letters cannot be answered individually. Write them at: Rental Roundtable, Homes Section, San Diego Union-Tribune, P.O. Box 191, San Diego, CA, 92112. Or you may e-mail them at rgriswold@retodayradio.com

Back to 1998 Rental Roundtable Index

Robert Griswold and the Real Estate Today! radio show strongly support the intent and the letter of all federal and state fair housing laws. As a reminder to all owners and managers of real estate, note that all real estate advertised is subject to the Federal Fair Housing Act, which makes it illegal to advertise "any preference, limitation, discrimination because of race, color, national origin or ancestry, religion, sex, physical disability, or familial status, or intention to make any such preference, limitation or discrimination." Additional state and/or local fair housing laws may also apply. Be sure to inform all persons that all dwellings offered or advertised are on an equal opportunity basis.

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Revised and Updated - Wednesday, April 26, 2006

Robert S. Griswold, CRE, CPM, CCIM, PCAM, GRI, ARM
Griswold Corporate Center
Griswold Real Estate Management, Inc.
5703 Oberlin Drive, Suite 300
San Diego, CA 92121-1743
Phone: (858) 597-6100
Fax: (858) 597-6161
Email: rgriswold.ret@retodayradio.com