When a child is born, the community usually rejoices. However, this turned out not to be the case when a couple recently gave birth to their second child in Michigan. The condominium complex forced the couple to sell their home due to bylaws in their condominium association that forbid more than three residents in the couple's home. This resulted in a business litigation lawsuit filed against the condominium association.
The bylaws of the association state that the couple was required to sell their home due to the family exceeding the occupancy limit for their three-bedroom, two-story unit. The lawsuit describes several incidences with neighbors who had informed them that they were in violation of the association's bylaws. The association agreed, telling the couple they were required to sell their home within a year of the birth of their second child.
However, what the association did not realize is that bylaws limiting the number of residents in a unit had been prohibited in 1989. The lawsuit alleges violations of the Fair Housing Act and is asking the court to grant them reimbursement for costs related to their forced move. The couple ended up selling their home and purchasing a significantly more expensive home. The move also forced a withdrawal of the couple's older child's acceptance into a charter school.
This business litigation case in Michigan illustrates how important it is to be knowledgeable about the latest changes in the law affecting a real estate business or any other type of business. Failure to do so can result in needless lawsuits that could have been prevented. Therefore, business plans should also be analyzed to ensure compliance with applicable rules and regulations.
Source: mlive.com, "Condo association forced couple to sell when second baby arrived, lawsuit claims", Jim Harger, April 10, 2014