WHAT IS THE DIFFERENCE BETWEEN A VESTED INTEREST AND BEING GRANDFATHERED IN?

By Darlys Walker

Published March 6, 2019  

 

After reading Eric’s blog, I wondered what exactly the difference between “vested interest” and being “grandfathered in” was. Is it possible that many owners were confusing the two? The simple answer is, yes they easily could be confusing the two.

 

A vested interest is never ending. It is perpetual and goes on, and may be passed to others in the future.

 

A grandfathered interest is given for a specific time period with an identifiable action which causes the interest or benefit to end.

 

Example: Jimmy Jones, purchases a condominium and the declaration states that dogs are allowed and there are no weight or breed restrictions. Several years after Jimmy purchased his unit, the declaration was amended stating there was a 25lb limit and limiting allowable breeds. A few more years pass and Jimmy purchases a pit bull, which is a prohibited breed. When he is notified of his violation he responds, “When I bought my unit there were no weight or breed restrictions, so I have vested interest.” Unfortunately he is incorrect. Declarations may be amended with a majority vote.

 

If we have the same scenario, but let’s say the amendment to the declaration states, any owner currently living in the community prior to the amendment shall not be subject to the amendment. However, upon sale of the unit or any other occupant or ownership change, the amended declaration shall apply. This grandfather clause allows Jimmy’s rights to continue. In the event he sells, moves or rents his home, he no longer is grandfathered in and the right is terminated!
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Darlys Walker, Founder and CEO of Condominium Concepts Management, Inc. (CCM), is recognized for her straight talk, subject matter expertise, and valued insights regarding real  

state management, leasing, and HOAs. Her company serves a diverse portfolio of properties, from 16-units up to 600 as well as large mixed-use developments.  

 

   From its beginnings in 2000, CCM has become a well-respected asset manager and now works with over 100 associations with 16,000 units served by over 300 employees. Darlys and her team deliver resources and responsiveness through six regional offices - in Orlando, Miami, Jacksonville, Charleston, Nashville and Atlanta.

  

   Darlys Walker is best known for her passion and precision, understanding that the only difference that matters in today's demanding marketplace is service delivery ... doing what is promised and what is right. She knows that every community serves two masters ... the property owner/developer and the resident/homeowner. "If we are not equally responsive to both, we are not doing our job," she states.  

 

   Her clients say it best: "Darlys really knows her stuff" ... "at the top of her profession and it shows in the caliber of her clients" ... "delivers quality resources that match up well with needs and expectations that are really rigorous."  

 

   She is a licensed Real Estate Broker in four states, holds an Associate's Degree in Marketing and has earned the Accredited Real Estate Manager designation from the Georgia Institute of Real Estate Management. Also she is one of few certified as a Lead-Based Paint Abatement & Removal Trainer in Georgia.

  

   Darlys Walker and her team have been selected to manage the condominium conversion process and day-to-day operations for many of the Southeast's most high-profile condominium communities including luxury high-rises, mid-rises and garden-style homes. Most recently she has been recognized as an expert in 're-versions' of communities from condominiums to leased homes, as well as repositioning projects. A visionary and a tireless perfectionist, Darlys demonstrates hands-on leadership, working individually with each client and staff associate to achieve defined business outcomes and satisfaction.  

  

  For more information about Darlys Walker and Condominium Concepts Management, Inc. please visit www.condominiumconcepts.com.

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