By Gary M. Singer
(MCT)–Question: A family member of mine lives in an eight-unit condominium. A developer has offered to buy the building, and it was our expectation that the owners would split the money evenly because all the units are the same size. But some of the owners say they deserve a larger share because they’ve renovated their units. What does the law say about this? – Anonymous
Answer: As with most questions related to condominiums, the first step is to check the condo documents to see what they say on the subject. Deals to terminate the condo and sell to a developer generally must be approved by 80 or 90 percent of the owners. Also, any mortgage lenders that will not be paid off in full need to approve the transfer.
The method of calculating each unit’s share may also be in the condo documents. If not, the owners will need to agree to share the money based on size of the units or fair market value. A simple solution might be to check with an appraiser to see how much a renovation increased the fair market value of a particular unit. Values typically are determined by location and size — so a renovation may not make much of a difference, leaving nothing for the owners to argue about.
Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar.
©2014 Sun Sentinel
Distributed by MCT Information Services
Copyright© 2015 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.
Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com