UrbanTurf Reader Asks: Why Do Condo Developments Restrict Re-Sales?

by Mark Wellborn


In this week’s installment of UrbanTurf Reader Asks, a reader who has been looking to buy a condo in the DC area wonders why certain developments restrict re-sales within the first few years following the date of settlement:

“I have been looking at condos in DC and the Maryland suburbs for the last six months. I am interested in both large and small developments, but there seem to be many more options in large new buildings in the DC area. What bothers me about these places is that many restrict the owner from putting the unit back on the market for at least two years from the date of settlement.

Is this common, and if so, is there any way around it?”

Post your thoughts in the comments section. If you would like to submit a question for UrbanTurf Reader Asks, send an email to .(JavaScript must be enabled to view this email address).

See other articles related to: urbanturf reader asks, dclofts

This article originally published at http://dc.urbanturf.com/articles/blog/urbanturf_reader_asks_why_do_condo_developments_restrict_resales/1030


  1. george said at 5:23 pm on Tuesday June 16, 2009:

    It all has to do with occupancy and the developer’s bottom line. They don’t want you putting your home on the market at a competing price when they still have units to sell.

  1. CondoAuthority.com said at 9:38 am on Wednesday June 17, 2009:

    Ditto to what George said.  Regarding “ways around it” there are typically provisions in the developers’ contracts that allow for exceptions based on certain hardships (job loss or significant reduction of income, job relocation, or other unique circumstances).  This really shouldn’t be much of a concern for most people as you probably shouldn’t buy a home if think you’ll need to sell in less than two years.  And, if something unforeseen arises with your situation, then that would probably be a qualifying exception.  You could also make your offer to purchase contingent on this resale restriction being removed or at least shortened.  Sounds like a reasonable request to me…

  1. Georgetowner said at 1:39 pm on Wednesday June 17, 2009:

    I think it also deals with financing.  From talking with my mortgage guy, it’s apparently easier to finance a condo in a building where a majority of residents are owners as opposed to tenants.

  1. jackson said at 9:06 am on Friday June 19, 2009:

    metropolis had this clause in every unit they sold and not once did they bring a suit against anyone who resold. once you own the unit, you can do what you like once you settle. it wouldn’t hold up in court, as once the transaction happens, that purchase contract considered fully executed and is null invoid.

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