Property

Brief

Aquarian Foundation, Inc. v. Sholom House, Inc.

Procedural History:

• Trial court, after a non-jury trial, found that Albares had violated the declaration of condominiums, thus triggering the reverter clause.
• Appealed.
• Reversed.

Facts:

• Bertha Albares, a member of the board of directors, sold her cono unit to the Aquarian Foundation, Inc without obtaining consent.
• The condo association board requires the written consent  of the condo associations board of directors to any sale, lease, assignment or transfer of a unit owners interest.
• The condo board  sued to set aside the conveyance, to dispossess Aquarian and to recover damages under a clause in the declaration which states:

Issue:

• Whether the power vested in the association to arbitrarily, capriciously, or unreasonably withhold its consent to transfer constitutes an unreasonable restrain on alieniation, notwithstanding the above quoted reverter clause which mandates that the association compensate the unit owner in the event, in this case, of a transfer of the unit in violation of the consent requirement.

Holding:

• The power of the association is declared an invalid and unenforceable restraint on alienation. For the Defendant.