PHILIPSBURG:--- The Joint Court of Justice has upheld a ban on short-term vacation rentals at three villas in the Sardinia Yacht Club residential community in Lowlands. The court clarified that the properties may be rented for three months or longer and that listings for those stays can appear on platforms such as Airbnb and VRBO.
The ruling, delivered October 21 and published November 4, largely upheld a February 2023 judgment against J-C Watches Limited and Ocean Mall Private Fund Foundation. The case turned on residential-use restrictions in the deeds governing the three villas.
Neighbors complained of noise and traffic
Two homeowners whose villa sits between the rental properties brought the case. They said large groups of visitors generated noise and litter, while taxis, caterers, and cleaning crews added to the disturbance. The three villas had been advertised separately and together on Airbnb and VRBO. A combined listing offered space for up to 26 guests and advertised services including a private chef and event planning.
The court reviewed video recordings and visited the properties in August 2024. It found the homeowners had a concrete interest in enforcing the restrictions, even though the villas were no longer rented to large groups after the lower court ruling and fewer disturbances were being reported.
Original rental program did not carry over to later owners
The appellants argued that the developer had conceived the community as a vacation villa project, with a rental pool intended to help owners recoup their investments. They also said previous owners had given them permission to rent.
The judges found that the original rental agreements were neither incorporated into nor adequately referenced in the deeds. The court also found that the deed language allowing rentals on terms agreed between buyer and seller referred to the developer and the original buyers. The original rental pool had long since ceased operating.
The court held that leases of at least three months qualify as residential use under the deeds. It added that exception to both the order restricting use of the villas and the order requiring the removal of rental listings.
The court also upheld the dismissal of the appellants’ counterclaims over alterations to the neighbors’ property. It ordered J-C Watches and Ocean Mall to pay Cg 6,279.50 in appeal costs, with statutory interest if they fail to pay within two weeks of formal service of the judgment. A separate appeal over whether penalties accrued under the 2023 orders remains pending.
