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Condominium "Merger" or "Reversion to Acreage"...

Posted: Wed Sep 25, 2019 10:40 am
by Robert Martin
A Client approached me about a reverting a condominium back to apartments. I don't see anything in the SMA that specifically points to Merging a Condominium. Does anyone have any experience with this?
Thanks,

Re: Condominium "Merger" or "Reversion to Acreage"...

Posted: Wed Sep 25, 2019 11:04 am
by Ian Wilson
While not specific to condominium maps, Mergers are possible. Think of the condos as nothing more than stacked 3D lots in a flat subdivision. If one person owns all the units, I suppose it would be possible.

I would want to know why, though.Getting rid of all those expensive lines makes my heart hurt.

Re: Condominium "Merger" or "Reversion to Acreage"...

Posted: Thu Sep 26, 2019 8:28 am
by Robert Martin
Ian Wilson wrote:I would want to know why, though.Getting rid of all those expensive lines makes my heart hurt.

Why is a good question!!! The Client said it cost $40k to convert the apartments to condos, I don't know how long ago he did it... I asked why he would want to go back, and he said it makes more sense for the complex to be apartments now...

Re: Condominium "Merger" or "Reversion to Acreage"...

Posted: Fri Sep 27, 2019 4:29 pm
by mpallamary
He can keep them as apartments while simply renting the condominiums. he will be the only member of the HOA and he can rents as he sees fit. he should get good legal advice. Sounds like a bad move!

Re: Condominium "Merger" or "Reversion to Acreage"...

Posted: Fri Sep 27, 2019 8:47 pm
by LA Stevens
One of the wealthiest persons I know has converted all of his apartments that he could to condos. I've done more then my share. Some were approved for apartments and before they were completed we started the conversion process .

He must be thinking of taxes vs long term value.