Developers offering to buy out condo building where I own a unit.

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Developers offering to buy out condo building where I own a unit.

Ron K.
Property Manager · Miami, FL · Member since 2010 · 27 posts · 2 votes

Hi all, 

I own a unit in such a condo, HOA and owners received offers from developers. My intention were to retire in that unit.

1) Will I have to sell if majority agree and more forward do sign contacts? 

2) Any nego strategy recommended to get most of the deal?   

Thank you in advance. 

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Matt Devincenzo
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
5y

Yes, hostile take over of a condo is a thing. The rules vary by State, but if they obtain a majority of the units they may (depends on the State) be able to force a sale through the courts.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    If a majority sell to the developer, you should as well since the building will then become non-warrantable. Once that happens the value will plummet.

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  • Ron K.
    OP
    Property Manager · Miami, FL · Member since 2010 · 27 posts · 2 votes
    5y

    Value may plummet but I think that the developer will have to pay me at the least the same price he offered my neighbors. 




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  • Matt Devincenzo
    Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    5y

    Yes, hostile take over of a condo is a thing. The rules vary by State, but if they obtain a majority of the units they may (depends on the State) be able to force a sale through the courts.

    1Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y
    Originally posted by @Matt Devincenzo:

    Yes, hostile take over of a condo is a thing. The rules vary by State, but if they obtain a majority of the units they may (depends on the State) be able to force a sale through the courts.

    Yes, this is a thing in FL. I forget the % ownership required, but after that point than can force a sale “at market price”.

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  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    5y

    You'll need to review statute and the HOA bylaws. I've repped a few buyers in these deals and it just depends on how close they are to signing the rest of the building. I'm licensed in FL if you want to chat more.

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