Q: My boyfriend bought a condo in September, 2006. He was never notified — not even at the closing — that no pets were allowed.
I have a very quiet, friendly dog and was spending the night about 6 nights a week. He was recently notified by the condo association that there is a bylaw stating no pets are allowed in the building.
Apparently, at the last condo board association meeting, the board voted to charge any owner a $25 per day fee for boarding or having a pet.
We have not stayed at the condo since then and now he wants to move to a place that permits pets. Seeing as how he owned the condo for less than 2 years, will he have to pay capital gains should he make a profit?
A: Typically, condo owners must provide a buyer with the condo declarations and all of the rules and regulations for the property. However in some cases, a buyer has to request the document and the seller is then required to deliver them. Some people receive the documents but never review them. That said, it is up to a buyer to understand the kind of building he or she is moving into. Some buildings are pet friendly while others are not. He should have investigated the building before even putting an offer in to buy the property.
Nevertheless, whether he was an informed owner or not, your boyfriend must now abide by the rules, regulations and bylaws that have been passed by the condominium association. It is unfortunate that he discovered the “no pets” policy after he closed.
When it comes to taxes, unless your boyfriend is selling because of an illness, divorce, or to take a new job that’s 50 miles away from his old job, he may have to pay taxes on any profits earned on the sale of the property.
For more details on possible exclusions from this rule, check out IRS Publication 523, “Selling your home.” It’s available for free at www.irs.gov.