“We’ve honored the condominium structure for more than 25 years. As a result, we have double accounting work and hold regular condominium meetings,” An email was sent by a representative from the Scully Company. “We have, from time to time, inquired about purchasing Mr. Fellman’s unit because of the additional expenses it causes. We approached the situation with offers that would be mutually beneficial to both parties.”
The Scully Company manages numerous developments throughout Pennsylvania, New Jersey and Connecticut. The company stated that a one-bedroom, one bathroom unit in Crystal Palms costs $1,735 per monthly. Rentals for three-bedroom units range from $2,670 to $3.340.
Mr. McKenzie explained that condos are often acquired by real estate companies. They then demolish them and turn the property into smaller, more-density apartments. This is called “The Conversion of Condos”. “deconversion,” He noted that it was called “it!” “a private form of eminent domain.”
“Many states have added provisions that the investor wouldn’t have to get every single unit to dissolve the association, to avoid the situation where there’s one holdout who could stop it, like when a person refuses to sell their house, and there’s skyscrapers all around them,” Mr. McKenzie said. “If you got to a certain percentage of the units that were owned by one investor, then the state could make the other people sell.”
These provisions are intended to prevent one owner, particularly in cases of dilapidation, from preventing a supermajority selling the building. “Without this provision, it would require unanimity to sell the building, which is very hard to get,” Mr. McKenzie said. “If a condo building falls into serious disrepair, should one owner be able to force all the others to stay locked into the project, even if they can’t afford to fix it, get it up to code, et cetera?”
Mr. McKenzie, who tracks deconversion in a database, said he’s observed hundreds of condos being deconverted to apartments in Illinois over the past decade. For developments that have four or more units, Illinois law requires deconversion to occur at a threshold of 75 per cent ownership.
The current version of Florida’s Condominium Act requires approval from 80 percent of the total voting interests of the condo, with less than 5 percent opposition, for a condo termination to proceed. The condominium act of 1979 required that all…
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