This course explains the reasons for termination or deconversion of condominiums and cooperatives. We explore the difficulties encountered in obtaining necessary owner and mortgagee approvals and how to minimize those difficulties. We highlight the potential liability of developers, acquirers and board members in entering into terminations and deconversions. We discuss the typical state laws governing terminations and the major outlier jurisdictions.
Syllabus
- A National Trend
- Why do unit owners want to terminate?
- Why do developers want to purchase a terminated condominium?
- Where are most of the terminations occurring?
- What is required to terminate (or deconvert) a condominium?
- When do you terminate a condominium?
- How do you terminate a condominium?
- Risks to the Board of Directors
- Special Considerations
- Tax Consequences of Distributions to Unit Owners
- Best Practices and Other Considerations
- Outlier Jurisdictions: Florida, Illinois & New York
