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Horizontal Property Law in PR

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  • Horizontal Property Law in PR

    Hello,

    I'm planning on moving to USA this year for professional growth opportunities and better quality of life. I own an apartment (walk-up) which I was planning to rent it to a close friend without a profit margin. But I bought the apartment in 2004 with a FHA (HOME Program) insured loan with a 10 year term which says that I cannot sell or rent it. I have read and hear of many people who still take the risk of renting the property and nothing happens to them. Does the Council of Title Holders (or board of directors) in this apartments have the legal power to supervise, control or even report this to the pertinent authorities?

  • #2
    You have to be careful because you could subject yourself to civil penalties if the FHA find out about you renting the apartment. These types of loans are made available to people so that they can have access to affordable housing and these funds are not intended to give people a chance to purchase residences as investments; this is why there is legal exposure when the property is misused. I would advise you to contact the FHA to find a better solution to your problem rather than violate the law. Good luck in any event. Unfortunately there is a lot of widespread abuse, sometimes really outrageous stuff that I have heard of, in public or publicly supported housing. This abuse really undermines the governments honest effort to help people. It is wrong and violators should know what can happen when they knowingly do things against their lawful contracts.
    Originally posted by GiovaTX View Post
    Hello,

    I'm planning on moving to USA this year for professional growth opportunities and better quality of life. I own an apartment (walk-up) which I was planning to rent it to a close friend without a profit margin. But I bought the apartment in 2004 with a FHA (HOME Program) insured loan with a 10 year term which says that I cannot sell or rent it. I have read and hear of many people who still take the risk of renting the property and nothing happens to them. Does the Council of Title Holders (or board of directors) in this apartments have the legal power to supervise, control or even report this to the pertinent authorities?
    Last edited by admin; 21st March 2011, 02:51. Reason: size adjustment

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    • #3
      Ripping off the system

      Originally posted by Sonambulo View Post
      You have to be careful because you could subject yourself to civil penalties if the FHA find out about you renting the apartment. These types of loans are made available to people so that they can have access to affordable housing and these funds are not intended to give people a chance to purchase residences as investments; this is why there is legal exposure when the property is misused. I would advise you to contact the FHA to find a better solution to your problem rather than violate the law. Good luck in any event. Unfortunately there is a lot of widespread abuse, sometimes really outrageous stuff that I have heard of, in public or publicly supported housing. This abuse really undermines the governments honest effort to help people. It is wrong and violators should know what can happen when they knowingly do things against their lawful contracts.

      Sonambulo

      I never can get over how naive people are. I guess its human nature to try to get away with as much as possible thinking one will never get caught. Reading the fine print can help, but reading seems to be a skill we're loosing with Twitering and Instant messages. Nonetheless this selective naiveness is not just a problem of Puerto Ricans it seems to be widespread, part of human nature.

      This is precisely why we have movements like the Tea Party. These people are apparently concerned about the deficit, how their taxes are used, and angry at a government who rips them off by giving out loans for people to abuse. Sadly the perception of the Tea Party is skewed. They percieve that the government rip offs are only done by others, meaning welfare queens, minorities, illegals, liberals, and those on a certain Caribbean island which I will not name. LOL

      There is really no right answer to all of this because it also depends on who is doing the rip off and gets away with it.

      Wall Street and the banks ripped off and screwed the economy in 2009, yet no one has said much. They got a bail out and have kept on with the rip offs while the blame is given to the working folks who pay their taxes, go figure.

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      • #4
        Brother I am not so sure it is naivete as much as I think it is selfishness; people rationalize all kinds of criminality or bad behavior. So many people see the government and programs designed to help the poor and down trodden as nothing but big ho[s] made to be exploited. In my professional capacity I see people ripping off the IRS, by filing false returns, HUD by lying on the applicaitons for housing or housing subsidies, medicaid- by double and triple billing, the defense department by overcharging or charging excessive processing feees. People are only sorry when they get caught, then want a break because "deep down" they are really nice people. Meantime people are hurting out here and having to do without because of the actions of others;

        The Tea party, while sometimes well intentioned and right on target on occasion, is full of kooks and whack jobs; they also lack minority representation, to put it mildly. They do drive home the point that we need a third, forth or fifth political party in this country. That being said the Democrats and Republicans are nothing but political exploiters and political whore mongerers. I dont believe in any politician.

        BTW I write big because I am half blind so forgive the type size.

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