Buying a Condo To Rent

Of all the things that could go wrong in Real Estate this is one happens more often than expected. It shouldn’t happen to me. I take all the precautions, but some times stories change when it comes to signing a contract.
I showed this buyer a number of condos in the lower price range. Some seemed okay, others required a complete rehab. Finally we found one in great shape in the $20,000 price range he wanted to write up on. During months of showing the buyer insisted he was going to pay cash and give the condo to his mother. It seemed okay to me. When it came time to write up the offer I asked if he wanted his name on the offer or his mother’s name. The answer was, “put down my name. I am going to use this as a rental.” Just what I needed, another problem.
Most condo associations allow only a certain percentage of rentals, and in this market has already reached the quota, as it was in this case. I had to tell the buyer he could buy it, live in it, or give it to his mother, but the association will not allow the unit to be used as a rental.
Once reality hit in the Real Estate market, there was no reason to write an offer. The buyer respected the associations rules. But not every buyer does. Some buy and rent anyway. I am not sure what kind of authority associations have in this area, and would suggest buyers consult an attorney before purchasing a condo for rental when association rules limit rental units.