Sale of condominium building?

9 Replies

I would like to know if it's possible to purchase ownership of a condominium building? I received some information on a 137 unit condominium building that is in need of capital repairs.  Apparently the board of directors is contemplating selling ownership because they are unable to get the work done.  I didn't think this was possible considering each unit is individually owned.  I would greatly appreciate any insight that can be provided. 

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I'm not sure I understand. Just my thought, but wouldn't this be buying out the Home Owner's Association and taking control of all of the "common" areas of the condominium? I would think that if you bought out the home owner's association you would then be responsible for the common areas and also collect all of the fees for the HOA?

Originally posted by @Bruce Ellerd :

I'm not sure I understand. Just my thought, but wouldn't this be buying out the Home Owner's Association and taking control of all of the "common" areas of the condominium? I would think that if you bought out the home owner's association you would then be responsible for the common areas and also collect all of the fees for the HOA?

 Yes essentially this is correct, but could this be an attractive investment considering you wouldn't own the entire building? 

Wrong.  The individual unit owners all own their pro rat share of the association......which owns the common areas And the building structure....the individual owners only own, individually, essentially the air space within their units (from wall/floor/ceiling surface to wall/floor/ceiling surface.  There is No way to "Buy" the association.

@Wayne Brooks When I lived in San Diego, I remember seeing some of the apartment complexes being converted to condominiums. I saw one that was converted over to a condominium and the apartments owner would keep ownership/management of the HOA and then when people would buy the individual condos, they had it in the contract that they were the HOA. I don't believe they held on to any of the individual condos, but through the conversion process they maintained the HOA.

Would this be a different situation or only possible through the conversion process because the owners bought knowing this was the situation. If he bought the HOA/management from the association, would this be a vote or would something like this even be allowed?

It can not be done, the association owns the structure.  Just like when condos are first built, shortly after a conversion, until 50% or so of the units are sold, the developer "runs" the association, he doesn't "own" it, he the same turns over Control of the association to the unit owners.

@Henry King Then the repairs don't get made. Sounds like that's what's happening here.

Could be a good opportunity for a deep-pocketed investor to pick up most or all of the units in one go, invest some capital, and run the place as apartments.