Condo Conversion Gone Awry - need advice?

Question

2 months ago, I purchased a condo in an upscale building in the center of a fast growing suburban city. the building has 340, 3-year old units that were apartments and the builder is renovating and converting to condos. about a month ago, the builder abruptly took the remaining 280 or so units off the market and is re-renting them for for leases that are up to a year. the Homeowner's dues are very high and I was expecting a luxury, resort community run by the homeowners, not a renters paradise controlled indefinitely by the builder. do I have any recourse in this situation? the homeowners are a minority and there is now no end in sight.

Answer 1

Guess what... if they call the note the YOU could still owe the bank the money YOU borrowed. And trying to sell your condo with these issues will be next to impossible since you will need to disclose any issue which can and will affect the marketability of said unit.

I would strongy suggest that you contact a real estate attorney before speaking to your lender. You may wish to speak to your other neighbors who are in the same boat to see what their feelings are in this matter. If all of you go in together you should have a stronger argument against the 'builder'.

Good Luck

Kevin

Answer 2

WHENEVER you purchase a condo, you are required to present your lender a CONDO CERT. This certificate garantees the lender that AT LEAST 75% or more will be HOMEOWNERS. and only 25% are allowed to rent. If you ask for a condo cert, they run about 25.00 or are free and send a copy to your lender, your lender will revoke YOUR mortgage. And guess what? U dont have to pay anything to the mortgage or the builder. The mortgage company becuz they WONT lend to you becuase you have to be in a nieghboorhood where HOMEOWNERS exist and the Builder becuz he broke his contract with you