In 2022, the owner of a three-bedroom condominium at The Legends on Hilton Head Island advertised the other two bedrooms together as a guest suite on Airbnb while continuing to reside in the unit. The Association notified the owner that the arrangement violated Rule 4, which required a minimum lease term of ten months, and directed removal of the listing by April 6, 2022. The owner maintains that the listing was removed by that deadline. Nevertheless, the Association assessed a $100 fine on May 5, 2022.
The owner disputed the fine and the applicability of Rule 4, raising questions about the Association's authority to restrict short-term leasing under the Master Deed. The dispute continued through correspondence, attorney involvement, and additional charges. On April 19, 2023, the Association recorded a lien against the property for $2,705.72, consisting of the $100 fine and $2,605.72 in attorney fees. In May 2026, the Association filed a foreclosure action. The owner responded with defenses and counterclaims and subsequently filed a separate lawsuit seeking access to Association records. Both proceedings remain pending, with the parties' respective claims and legal positions subject to determination by the court.