By Valerie Farris Omen — October 1, 2013

A recent Division II Court of Appeals case has set out a two-prong test for determining whether a house rule is reasonable. The case, Kawawaki v. Academy Square Condominium Association, concerned a dispute over a newly implemented house rule that dictated that rental status runs with the condominium unit and not with the owner.  The condominium’s Declaration, which contained a restriction limiting the number of rental units to nine of the thirty-six total units, provided for a “first-come, first-served” rental waiting list.  The Kawawakis, who were on the rental waiting list, argued that the house rule allowed new rental unit owners to bypass the rental waiting list.  The condominium association argued that the house rule was a reasonable mechanism for implementing the use restriction in the Declaration.  Read more…….