Selling apartments

[Borgieskid]

I own a 10 unit apartment complex in Florida. I would like to sell 6 and keep 4. Each unit has seperate elec, phone and cable but the water and sewer is a main. It would be cost prohibitive to re-plumb all the units. Is it possible to set up a seperate account for water and insurance? Would it be best to go condo or co-op? Or perhaps another way? Thanks.

 

[David J. Miller]

You need to hire an attorney to look into this in more detail. You have not considered a lot of things.

First of all, each unit needs to be subdivided and given it's own legal description and PID number. Each unit will need it's own city water & sewer connection.

There is a lot I don't know about how you would proceed with this but if it were me, I'd contact an attorney first thing.

 

[Borgieskid]

Thank you David..

Thank you David for your prompt reply. There are many areas here that have "community" water and sewer. The legal description should be no problem, just would be described as "unit #1-described as...." What's your opinion on condo versus co-op? Thanks

 

[David J. Miller]

I don't know enough about co-ops to comment. Perhaps someone else can respond.

 

[HomeGuru]

You can do a condo conversion whereby you condominiumize the property such that each apartment unit is a separate legal entity for legal and financing purposes. The water and sewer, insurance etc. you would include as part of the owner's monthly maintenance fee.

[Edited by HomeGuru on 12-06-2000 at 08:39 PM]

 

[Borgieskid]

Thank you... advice much appreciated. Would you suggest contacting a realtor first, one who can get the ball rolling on the sale while the legal stuff is being done? Or should I first contact a lawyer? Karen

 

[HomeGuru]

Here is what I do. Hire a real estate condo law/development attorney and have him/her start working on the paperwork. In the meantime ask for a condo conversion checklist and budget form so you can start working on other things. You may need an inspection and certification by an architect/engineer, a survey, termite report, environrmental inspection etc. Contact a Realtor that specializes in selling conversions and ask them to do a market study and a development sales anaysis. The sales info would include tips on curb appeal such as paking lot resurfacing, exerior and interior painting etc. and also interior specs ie. would you need new floor coverings, window treatments, appliances etc. You need to make sure that the roof and major plumbing and electrical systems are in good order. Then you need to start working on a budget to estimate the maintenace fee and reserves. For more info http://www.caionline.org.

 

[Borgieskid]

Does the state require?

Does the state require the termite, roof, electrical inspections? All of the units have been refurbished since 1994.... storm of the century.. new roof, electric, all units have 6 year old heat pumps (seperate) What is a condo conversion check list? Any other options besides going condo??? Thanks.

 

[HomeGuru]

I am not sure what the State requires.
A condo conversion checklist is just a to do list of what is required to be completed prior to the sale of the units.

There is another way to sell and you mentioned coop. I do not recommend this method because it is like stock ownership in a corporation. Instead of owning the individual unit as in a condo, the owner would own shares in the coop which actually owns the building.