Donald and Melania Trump could face eviction from their Mar-a-Lago home in Florida.
Officials at the Palm Beach site are said to be considering a bid by neighbours to remove them.
The couple moved to the luxury resort after leaving the White House in January.
But residents have complained the former US President is not legally entitled to live there because of an agreement from 1993.
The agreement turned the site from a private residence into a members’ club.
Neighbours say it prohibits him from living there for more than three times a year for up to a week each time.
There is no ban on employees living there.
Back in 1993, a lawyer for Trump told town officials he would be treated like any other member of the club.
Paul Rampell said: “Another question asked of him is whether or not Mr Trump will continue to live at Mar-a-Lago and the answer is ‘No,’ except that he will be a member of the club and would be entitled to use the guest rooms.”
But the promise was reportedly not included in a written agreement.
Philip Johnston, an attorney who said he represents residents, told officials neighbours fear it will become “a permanent beacon for his more rabid, lawless supporters”, according to ABC News.
Lawyers for Trump have claimed the agreement for the site did not say the property’s owner could not live there.
They argued he was a “bona fide employee” in his role as president of the club.
In a statement, the Trump Organisation said: “There is no document or agreement in place that prohibits President Trump from using Mar-a-Lago as his residence.”
The Palm Beach council will discuss the issue at a later meeting.
Trump bought the south Florida mansion, which has 126 rooms, for £7.2million ($10million) in 1985.
The initiation fee for members costs more than £140,000 (($200,000), while annual dues are £10,000 ($14,000).
He is said to have stayed there for longer than seven days at a time while he was still in office.
The fight comes as Trump’s second impeachment trial in the Senate gets under way over his role in the deadly Capitol riots last month.
Following his defeat which saw Joe Biden named as the 46th President, Trump supporters stormed Congress in Washington, leaving five people dead.
Trump is accused of “inciting insurrection”.