{"id":415,"date":"2010-07-12T19:29:02","date_gmt":"2010-07-12T19:29:02","guid":{"rendered":"http:\/\/blog.topbev.com\/?p=415"},"modified":"2010-07-12T19:29:02","modified_gmt":"2010-07-12T19:29:02","slug":"that-old-stand-by-the-condominum-conversion-some-how-to-steps-for-a-real-estate-strategy-that-still-remains-viable","status":"publish","type":"post","link":"https:\/\/blog.topbev.com\/?p=415","title":{"rendered":"That Old Stand-By “The Condominum Conversion”—Some “how to” Steps for a Real Estate strategy that Still Remains Viable"},"content":{"rendered":"

Even in today’s distressed real estate environment, there are times where a condominium conversion makes sense. I have been working on condominium conversions for more than twenty year. There follows a short summary of the process, with the thought that condominium conversion may make the best sense for your multi-unit Sellers. My firm, Topkins & Bevans<\/strong>,\u00a0continues to assist \u00a0developers and individuals with condominium conversions. We have developed a team of engineers, financing people, accountants and marketing professionals which can take most of the anguish out of the process.\u00a0\u00a0<\/p>\n

\u00a0INITIAL STEPS<\/p>\n

A\u00a0 Massachusetts condominium can only be created by adherence to the provisions of Massachusetts Laws, Chapter 183A. The first professional to be involved is the engineer, or in some cases, an architect.\u00a0 This professional needs to provide two separate documents.\u00a0 The first is a site plan, which shows the footprint of the building on the land. If there are parking spaces to be conveyed or parking easement, they are indicated on the site plan.\u00a0 Any easements or rights of way are also delineated.\u00a0 The professional also needs to draft condominium\u00a0floor plans, which configure the units which are being created.\u00a0 If there are yards, decks or roof rights, these need to be shown on the condominium\u00a0floor plans.\u00a0 Common areas , including those for exclusive unit to certain units, are marked off.<\/p>\n

Once the plans are developed,\u00a0our firm\u00a0gets into the action.\u00a0 We draft the following two necessary documents which will accompany the plans described above:\u00a0<\/p>\n

\u00a0\u20221.\u00a0\u00a0\u00a0\u00a0\u00a0 Master Deed.\u00a0 This document makes the property a condominium.\u00a0 It references the Site Plan and the Condominium\u00a0Floors plans.\u00a0 It indicates the exact boundaries of each Unit.\u00a0 It provides descriptions of any exclusive easements or rights.\u00a0 Often, there is language in the Master Deed which makes FNMA and FHLMC able to purchase loans secured by the condominium units.\u00a0 The Master Deed also sets forth the percentage of ownership and actual configuration of each Unit.\u00a0 In effect, the Master Deed gives the purchaser necessary specific information as to what he or she is actually purchasing.<\/p>\n

\u20222.\u00a0\u00a0\u00a0\u00a0\u00a0 Condominium Trust.\u00a0 This document sets forth the rules and regulations of condominium operations.\u00a0 Condominiums are run by a group of Trustees, elected by the unit owners.\u00a0 The Trustees meet periodically and make decisions concerning operations.\u00a0 They contract for repairs, maintenance, insurance and snow removal.\u00a0 They collect monthly fees, which are set, annually, and they make sure each unit owner is current in payment of necessary fees.\u00a0 All of the details of these items are described in the Trust document.\u00a0 Additionally, the Trust will control whether pets are permitted and also describe procedures which must be adhered to if you are renting your unit..\u00a0 Most new Trust documents also set forth an arbitration procedure to be utilized if a unit owner takes issue with the actions of the Trustees.<\/p>\n

\u00a0FINAL STEPS<\/p>\n

After the documents are drafted and recorded, it is time to sell the condominium units you created.\u00a0 There are tax ramifications which need to be addressed.\u00a0 An accountant thoroughly familiar with the proper steps is essential.\u00a0 Similarly, real estate professionals can market your units effectively and can actually be showing the units while the documentation is being completed.\u00a0 You as the organizer need to obtain common area insurance and prepare an initial budget which will be used to determine the condominium monthly fee.\u00a0\u00a0An experienced condominium attorney\u00a0can help you accomplish all these steps at a pace which works for you.<\/p>\n

There is work involved in a condominium conversion.\u00a0 There are also cash outlays.\u00a0 On the other hand, it is estimated that a two or three family dwelling converted into condominiums is still \u00a0worth no less than one<\/strong> hundred fifty percent of its value as an apartment dwelling.<\/strong>\u00a0 With that kind of increase in value, especially in a difficult rental market, it behooves any property owner to consider condominium conversion.<\/p>\n","protected":false},"excerpt":{"rendered":"

Even in today’s distressed real estate environment, there are times where a condominium conversion makes sense. I have been working on condominium conversions for more than twenty year. There follows a short summary of the process, with the thought that condominium conversion may make the best sense for your multi-unit Sellers. My firm, Topkins & … Continue reading That Old Stand-By “The Condominum Conversion”—Some “how to” Steps for a Real Estate strategy that Still Remains Viable<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[144],"tags":[277,280,278,279],"class_list":["post-415","post","type-post","status-publish","format-standard","hentry","category-condominium","tag-condominium-conversions","tag-condominium-declaration-of-trust","tag-condominium-documents","tag-master-deed"],"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":144,"url":"https:\/\/blog.topbev.com\/?p=144","url_meta":{"origin":415,"position":0},"title":"Condominium Operations–It’s Time for a Change","date":"June 23, 2010","format":false,"excerpt":"Over the years, I have had many opportunities to become part of the Condominium process. I have drafted Condominium Documents, both conversions and new projects. I have\u00a0closed literally thousands of mortgage loans, which involved either Condominium purchases or refinancing. I have also represented Buyers and Sellers of Condominium Units of\u2026","rel":"","context":"In "Condominium"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":365,"url":"https:\/\/blog.topbev.com\/?p=365","url_meta":{"origin":415,"position":1},"title":"Together We REALLY Can–The Combined Enterprise of the Buyer’s Agent and the Buyer’s Attorney in Condominium Purchases","date":"July 9, 2010","format":false,"excerpt":"While there has been a marked increase in both new and conversion condominiums in Massachusetts, where I practice real estate law,and most other jurisdictions in ActiveRain nation, it is my sense that many people get involved in a condominium purchase without any real understanding of what they are getting into\u2026","rel":"","context":"In "Condominium"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":167,"url":"https:\/\/blog.topbev.com\/?p=167","url_meta":{"origin":415,"position":2},"title":"Condominium Due Diligence–Our Professional Responsibilities","date":"June 24, 2010","format":false,"excerpt":"The stormy winter we have experienced needs to be factored in when purchasing a condominium unit. Roofs and other systems have been under a considerable amount of strain, and according to casualty insurance statistics, claims are at record levels.\u00a0 Those leaks through ceilings and walls can be plastered and painted\u2026","rel":"","context":"In "Condominium"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":37481,"url":"https:\/\/blog.topbev.com\/?p=37481","url_meta":{"origin":415,"position":3},"title":"Clash of the Condominium Owners","date":"July 29, 2021","format":false,"excerpt":"\u00a0\u00a0\u00a0\u00a0We all know it is getting harder and harder to find our little piece of this earth to call our own. Housing prices continue to rise and the demand for houses has only gotten more competitive. This have never been more true than on Cape Cod, where one condo owner\u2026","rel":"","context":"In "closing"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":915,"url":"https:\/\/blog.topbev.com\/?p=915","url_meta":{"origin":415,"position":4},"title":"Assessments Reassessed!!!","date":"February 18, 2014","format":false,"excerpt":"Earlier this month, I represented a Seller in a Boston condominium... there were going to be Special Assessments to pay for same.","rel":"","context":"In "Condominium"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":179,"url":"https:\/\/blog.topbev.com\/?p=179","url_meta":{"origin":415,"position":5},"title":"New Condominiums–More TRAPS for the unwary","date":"June 24, 2010","format":false,"excerpt":"It is starting to happen again. Just like it did in the late 1980's and early 1990's. Condominiums are in financial trouble, I have previously written a Featured Post about delinquent condominium Unit Owners and what Trustees MUST do to collect common area fees from them. A similar, but potentially\u2026","rel":"","context":"In "Condominium"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=415"}],"version-history":[{"count":3,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/415\/revisions"}],"predecessor-version":[{"id":849,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/415\/revisions\/849"}],"wp:attachment":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}