CONDO CONVERSION

The Process of condominium conversion process requires the efforts of an attorney, an engineer or land surveyor and an architect. The attorney will prepare a Master Deed, Declaration of Trust and Bylaws. The Master Deed when recorded at the Registry of Deeds will legally create the condominium. Along with the Master Deed, the Declaration of Trust and Bylaws, Master Deed Floor Plans and a Site Plan are recorded at the Registry of Deeds.

The Master Deed will specify what is considered common area and what the boundaries of each unit are. It will also specify the rights and obligations of the unit owners, including the exclusive right to use areas for each unit. These exclusive right-to-use areas often include a storage area in the basement, front or rear porches and a parking space outside.

The Declaration of Trust and Bylaws will create the Condominium Association, which will manage the day-to-day running of the condominium. The condominium association will have its own bank account into which each unit's monthly condominium fees will be deposited. From this account, the condominium association will pay all of the common expenses relative to the maintenance, repair and upkeep of the common areas of the condominium. These common expenses will usually include the annual condominium insurance premium, common water bill and general maintenance and landscaping expenses for the common areas, which include the structural elements of the building. The unit owners may also decide to include in the monthly condominium fee an amount to be assigned to a capital reserve fund. This capital reserve fund will then be available to pay for capital improvements and repairs that may be required in the future.

Before the attorney prepares the condominium documents, the architect will take measurements of the interior of each unit to be created, the basement, entry hallways and stairways and any other shared common areas. These plans will also show any exclusive right to use areas that go with each unit. Once the attorney obtains a first draft of these plans, the attorney will then be able to generate the condominium documents for review by the owner. In addition, the engineer or land surveyor will prepare a plan of the lot showing where the house sits on the lot including any driveway and garage. This Site Plan will show shared common use areas and any exclusive right to use areas that belong to any of the units. These exclusive right-to-use areas often include parking spaces, a garage and back yards.

Once the documents are recorded you will be able to sell each unit individually. Fitzgerald Law Offices will offer discounted legal fees to represent you on the sale of each condominium if we do your conversion.

In addition to creating the condominium documents we can create an entity in which to hold your properties, such as a Real Estate Trust, Limited Liability Company (“LLC”) or Corporation. This is recommended for liability and accounting issues.

A Developer’s Dream

Fitzgerald Law Offices has recently entered into joint ventures with several area real estate agencies. If you plan on selling your newly formed condominiums, this is an amazing opportunity for you to save THOUSANDS of dollars on your condominium conversion. By agreeing to list your newly formed condominiums with one of our partner real estate agencies, Fitzgerald Law Offices will give you 75% off the cost of legal fees on the condominium conversion. In addition, our partner real estate agencies will charge a reduced 4% commission per unit when you list (3) or more units. Contact Scott J. Fitzgerald for more details.